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The key of increasing sales to J-P’s revenue growth is must have a strong management team. Why get a strong management team is the key? The J-P Corporation is one of the nation’s largest shareholder-owned life insurance companies. Jefferson-Pilot’s life insurance and annuity companies, principally Jefferson-Pilot Life Insurance Company, Jefferson Pilot Financial Insurance Company, and Jefferson Pilot Life America Insurance Company, together offer full lines of individual and group life insurance products as well as annuity and investment products.Situation of J-P Company J-P distributed its individual insurance products through three separate systems: career agents, independent producing general agents, and financial institutions. J-P hired career agents and provided them with extensive training, an office and full staff support. The company paid the agents a salary subsidy during their training year and then changed them to a commission-only basis. The agents earned a commission on the premiums each policy generated. The agent earned a higher commission rate on the first-year premium then earned a lower commission rate on renewal premiums thereafter as the policyholder renewed the policy year after year. The career agents were very loyal. In fact, the company was very selective in choosing career agents. Becoming one was difficult, and those who were successful were very proud of their position. But growth based on a career system was slow, and the costs of maintaining the sales force were high. In early 1993, J-P had approximately 800 career agents. They sold about 90 percent of its life insurance policies. Bill Seawell was responsible for managing the career sales force. At the beginning of 1993, there were approximately 1,400 independent producing general agents distributing J-P's life and annuity products. Twelve salaried regional directors recruited about 15 to 20 producing general agents each year, seeking agents who were already established in the insurance business. Although the independent agents did not work directly for J-P, the company provided extensive training and support. Ron Ridlehuber was responsible for managing the independent sales force. J-P also used an additional distribution channel consisting of 19 relatively small community banks and savings institutions that contracted to distribute life and annuity products.
Approximate Word count = 1376
Approximate Pages = 5.5
(250 words per page double spaced)
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