Custodian Agency Model

SUBJECT: CUSTODIAN LIFE AGENCY EXPANSION PLAN

PREAMBLE

The Agency Model has been operating in Custodian Life Insurance since 2013. This is the traditional sales model for retail insurance and the experiences/lessons from implementing and operating an Agency model within Custodian life are not atypical. Custodian engaged an expert from a country which shares the same sociodemographic similarities to Nigeria, where the agency model is thriving. A sales model has been developed and is been implemented however, a catalyst to the development of this model will be to open network of sales outlets and utilize existing Custodian branches in vibrant locations/cities from where the agents would operate.

This paper recommends a plan for the rollout

Lagos, Port Harcourt, Abuja, Kano, Kaduna,Benin,Warri,Aba,Enugu,Abeokuta and Onitsha account for 80% of economic activities in Nigeria . Lagos alone accounts for majority of economic activities being home to major industries of the economy. Activities in Port Harcourt and Warri are driven mainly by the oil & gas industry, Kano, Onitsha & Aba by trade while that of the FCT is driven by the Public Sector.
Invariably, there is also a rural –urban drift to these areas hence they are the most populated areas in Nigeria.
This paper also recommends that for reduction in costs Custodian Life insurance utilizes its existing branches to deploy its agency workforce before introducing

This staff strength presently is approximately 12 Agency Managers and 9 Unit Managers. Its is safe to assume that the staff strength and effective monitoring and training in the Upcountry cities is the major cause for low premium generation. Following the timelines in Figure 2, each city would require a minimum of 10units Managers and 1 Agency Manager, for upcountry branches who already have agency managers, however average to optimal income is not been generated, we would keep retraining and if there is need to replace we would replace for maximum productivity.

Typically, we see a about a 40% attrition rate hence it would be wise to recruit 25-unit managers at every point in time per city (This would also be largely dependent on the office space), therefore considering the attrition rate we should be able to have a minimum of 10 Unit managers at any point in time. The emphasis for recruitment is on unit managers hence they can grow in the hierarchy and also imbibe the custodian culture properly whilst rising through the ranks.

Recruitment would be done via the following medium;

• LinkedIn
• Social