Advising the Insurance Agency Association on the drafting and signing of voluntary agreement

Apprehensions have surfaced within the insurance sector pertaining to the heightened recruitment activities of insurance agents within general agencies, which could potentially disrupt a conducive recruiting environment and, ultimately, result in adverse consequences for end consumers. In response to this industry concern, the Insurance Agency Association has engaged the legal services of Lee & Ko to formulate a voluntary agreement aimed at mitigating these issues. Guided by the directives from the client, Lee & Ko has meticulously crafted the preliminary draft of the standard voluntary agreement for the agency, ensuring strict adherence to prevailing laws and regulations

In recent years, the segregation of product development and sales/marketing of insurance products has become increasingly prominent thereby augmenting the influence exerted by general agencies across the entire insurance market. Consequently, intensified competition among general agencies prompted concerted efforts spearheaded by the Insurance Agency Association to rectify the deleterious effects resulting from excessive competition. Given the elevated stature of the general agencies, it is anticipated that its voluntary agreement will wield a profound impact on the overarching landscape of the insurance industry. From the nascent stages of drafting the initial draft of the voluntary agreement, Lee & Ko’s involvement has been proactive, contributing not only to fulfilling client requirements but also significantly advancing the public objective of establishing order within the insurance sector.