LEVEL OF EFFECTIVENESS ON THE PRACTICES OF INSURANCE SALES AGENT

IN OZAMIS CITY

A Research Proposal Presented to the

Institute of Business and Financial Services
Gov. Alfonso D. Tan College
Maloro, Tangub City

In Partial Fulfillment of the Requirements for

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
MAJOR IN MARKETING MANAGEMENT

JOLENDA E. ODCHIGUE
GILFE JAMES HONCULADA

January 2021
 CHAPTER 1

PROBLEM AND ITS SCOPE

Background of the Study

In today's new normal, most people want to secure every member of the family's future.

Life insurance sales agents' advantage is to allow most people who cannot go to their company

because of the pandemic we face (Luciani et al., 2020). Thereupon, life insurance industries have

great facing uncertainty due to COVID-19. Social distancing precautions have reduced face-to-

face selling at an individual level, a vital part of the selling process. Both buyers and sellers have

to reconsider their plans (Livingstone et al., 2020). Currently, businesses amidst the current

global pandemic's advent can slow down significantly and negatively affect business and

economic efforts (Fernandes, 2020). It brought many factors that affect business in terms of

staging products and services. Factors that may affect distribution management and channel

design which are equally important in marketing (Donthu & Gustafsson, 2020). Despite various

intensive research and studies on business and trade, uncertainties in the present situation are

inevitable (Liao & Li, 2020). Thereupon, innovation for methods and techniques which aim at a

promising approach in continuing the trading cycle is essential (Ghezzi &  Cavallo, 2020).

However, business industries utilize online marketing as a coping mechanism in the new

normal. Usage of social media, such as Facebook, Instagram, Twitter, and Tiktok, which are the

new call sector in promoting that integrates business, relations, ankd brands which make the

news, influence companions, to construct connections, and create groups (Basilisco & Cha,

2015; Farhud, 2016). Likewise, business industries also utilize web-based social networking,

which gives the advantage of a correspondence stage that encourages two-way communications
between an organization and its stockholders. Business can be progressed across several long-

range informal contact destinations. (Akram & Kumar, 2017). 

In the Xavier University of Louisiana, the United States, several factors affecting life

insurance agent production were tested to produce a predictive agent and agency production

model. Surprisingly, formal education, professional education, and training showed no effect on

production. The number of policyholders and the smaller management span of control both

proved predictive. The most important predictors, however, proved to be prior performance

(Turner, 2008).

A study was conducted in the Philippines to identify agents' sales performance in high-

end developer amidst pandemic. Descriptive-correlation design was used to assess the

relationship between demographic variables and direct marketing. A structured survey

questionnaire and one-on-one interview were used for data collection. As a result, the most

successful direct marketing to meet the sales quota is by face-to-face sales. The researcher

suggested a sales strategy based on the results of the report (Lee & Suarez, 2020). 

However, multiple studies have shown similar gaps, and this study's impediments can be

situational, epistemological, philosophical, and psychological. In addition to the barriers stated,

other researchers also found that perceived barriers to online marketing include interpersonal

barriers, institutional barriers, training and technology barriers, and cost/benefits analysis (Lee,

2020).

Based on the multitude on the influence of Level of effectiveness on insurance sales

agents' practices, there is an important reason to conduct this study to quantify life insurance

agents' strategies as a coping mechanism in productive sales amidst pandemic. Hence, such

understanding could also be a channel for developing remediation that would complement the
life insurance businesses to establish new and better strategies in keeping productive sales of

products and services.

Schema

Theoretical Lens

This study will be an anchored in two theories; structuration theory and systems theory.

Structuration theory defines structures as rules and resources organized as properties of social

systems. The approach employs a recursive notion of actions constrained and enabled by designs

produced and reproduced by that engagement. Consequently, in this theory, technology is not

meant as an artifact but instead measures how people, as they interact with technology in their

daily living practices, enact structures that shape their emergent and situated use of that

technology (Ortiga et al., 2013: Scott, 2013).

Moreover, Structuration theory is by analyzing people, the antecedents and consequences

present in the individual's environment, and the learned associations they have gained through

experience. This entry emphasizes the various behavioral perspectives, such as classical

conditioning, operant conditioning, cognitively mediated behavioral theory, and functional

contextualized concepts (McPhee & Canary, 2016).

On the other hand, systems theory considers the historical development of technology

and media, emphasizing inertia and heterogeneity, stressing the relationship between the artifact

built and the social, economic, political, and cultural factors surrounding it. Key concepts include

reversing salient when elements of a system lag in development concerning others,

differentiation Key authors include (Luhmann & Beacker, 2013). Through exposure to various

media outlets, people develop awareness about society and the world. This cultural and political

awareness is vital if we want to groom a generation of socially responsible citizens. With news
channels, magazines, social networking sites bringing about world happenings, people can

realize that there's a lot to the world than just what is happening in their zone.

Conceptual Framework

       This study proposes that the sales agent should be focused on achieving the consumer's

effect on insurance. As a result, insurance markets are now being incorporated into the banking

sector, and the insurance sector plays a critical function in the service economy. Profitability is

one of the most significant priorities for financial management (Malik et al., 2011).

As a coping mechanism in targeting high sales, online marketing has become an integral

part of today's new normal marketing. Potential life insurance customers prefer to do their online

research. Therefore, businesses in the new normal should be prepared to strengthen their

companies' image by means of search engines, corporate websites, and social media profiles and

to ensure better communication with customers (Dumpe, 2015).

However, Lee & Suarez (2020) described the most successful direct marketing services,

primarily face-to-face sales and internet marketing, to sell high-end condominiums in Metro

Manila. These two direct marketing tactics have already been shown to maximize the revenue of

life insurance agents. And as a result, face-to-face marketing is the most successful way to

market high-end condominiums. The study also demonstrated the possibility of sales being made

in direct marketing and suggested a sales strategy based on the study results.
 Level of agent respondents in
targeting sales amidst
pandemic in terms of;
Effective of Life Insurance
1.1 Selling mechanism;
Agent 1.2 Learning and
development;
1.3 Service and Quality
focus?

Figure 1. Schematic Diagram

Statement of the problem

 This study aims to examine the rule of insurance sales agents and know the benefits of

the consumers. Specifically, it answers the following questions.

1. What is the Level of agent respondents in targeting sales amidst pandemic in terms

of;

1.1 Selling mechanism;

1.2 Learning and development;

1.3 Service and Quality focus?

Significance of the study

This study involved real estate agent participants in documenting the influence of online

marketing. Moreover, the findings of the study would be beneficial to the following:

Life Insurance Companies. This study would serve as their benchmark in helping

companies in utilizing online marketing in targeting productive sales.

Life Insurance Agents. The outcome of this study will give a link to real estate agents

on the influence of online marketing on their field. 

Future Researchers.  This study's outcome is a benchmark for them for a broader

understanding to come up with productive research. This could also give them

further insight and find answers to the questions they want to explore more in the

life insurance business. 

Scope and limitation of the study

The study will examine the effectiveness of life insurance agents in different life

insurance companies in Ozamis City. This study is delimited to the respondents' integrity as they

responded to the researcher's research questions. 

Research Methodology

This section discusses the research design, research setting, research respondents,

research instruments, research validity, data gathering procedure, and scope and limitation.

Research Design. With the utmost desire to better understand insurance agents'

effectiveness, the researchers used a quantitative research design. The design will

lead the researchers to explore better the concept of effectiveness of insurance

agents. After reviewing multiple studies, the researcher would like to discover and

prove the factors and ideas that the other researchers have already studied.

Descriptive survey design, which includes an individual's description of an

experience, will be emphasized through descriptive analysis. The individual is

aware of this experience, and the researcher tries to reach individual involvements

of the participants.

Research setting. The research will be conducted on leading life insurance companies in

Ozamis City. These are Sunlife, Philam life, and Insular Life. The interview guide

questions will be given to life insurance companies and their agents. Sunlife is a

mutual life insurance firm in the Philippines. It was formed in Manila on

November 25, 1910. It is the first Filipino life insurance company. The business

provides individual and group life, health, and retirement insurance policies. It is

located along Ozamis-Oroquieta National Highway. It is a two-story building

with the city's main commercial area. Multiple small units can be combined or

more prominent companies subdivided. On the other hand, Philam Life is a

Philippine American Life and General Insurance Company, an insurance

 company based in the Philippines. It is currently the largest life insurance firm in

the Philippines in terms of assets, net worth, investment, and paid-up cash. It is

located in Lica Bldg. Rizal Ave. cor J Luna St. 7200 Misamis Occidental Ozamiz

City Northern Mindanao. Lastly, Sunlife is the largest international financial

services company based in Canada offering a wide range of insurance, retirement

and investment products and services to cater the varied needs of both individual

and corporate clients around the world. It is located in First Consolidated

Building, Don Anselmo Bernad Avenue, Ozamiz City, Misamis Occidental.

Thereupon, the researcher selected these companies knowing the efficiency of the

said study among life insurance agents and for the researcher to feel comfortable. 

Research respondents. The total sample for this study could have involved up to (30)

life insurance agents from Sunlife, Philam life and Insular life in Ozamis City.

The researcher will utilize a purposeful sampling strategy to select respondents

(Tongco as cited in Etikan et al., 2016). By using this strategy, it is best to

develop a sample where multiple perspectives would offer both depth and

diversity and where selected respondents were likely to provide information that

has a close relation to the concept being studied (Creswell & Creswell, 2017).

Appropriate approval will be obtained from every company. Life Insurance

companies used as data collection locations and to review process for approving

research conducted at their institution. As a professional courtesy, the researchers

notified the managers in selected locations. If there will be no response received

within the given time, which is seven days, a follow up phone call must be done

by utilizing the key points for the previous email as a script for the request.9
Research instruments. Data sources or instruments will be arranged for thirty (30)

participants. A descriptive survey questionnaire will be used as data tools. This

survey questionnaire is an instrument that consists of the effectiveness of agent

respondents in targeting sales in terms of Selling mechanism; Learning and

development, and Service and Quality focus.

Data gathering procedure. The study will be started with the identification of the

problem. The proponents wrote a letter of permission addressed to the

management to conduct the research and get the study's data. The proponents had

a face-to-face interaction with the respondents using a set of questions that served

as another data gathering tool. After answering all the problems in ample time,

that data was collected.

Data Validation. The adviser, the school statistician, will checked the descriptive survey,

and the editor to ensure grammatical correctness for easy understanding. After

this, the corrections of the adviser school statistician and the editor will be

integrated into the questionnaire before its distribution.

Statistical Treatment of Data. In the analysis of data, the researcher will use

Descriptive Analysis Tool to answer the questions and to find the mean and

frequency. 

Research tools. A Likert-scale questionnaire will be administered to the agent’s

responses. A range of numerical values which range from 1-5. This range gives

the weight of the reactions. The scale range 1= strongly disagree, 2=disagree,

3=moderately agree, 4=agree, and 5 = strongly agree.

 Range of Mean Descriptive Equivalent Interpretation

4.21 – 5.0 Strong Agree Always

3.41– 4.20 Agree

2.61-3.40 Moderately Agree Sometimes

1.81-2.60 Disagree Never

1.0 – 1.80 Strongly disagree

Table 1. Mean and Interpretation

Ethical Consideration

The respondents’ confidentiality will not be revealed to anybody. Before the

dissemination of questionnaire, a written informed consent form will be presented to the

respondents. It will emphasize that the gathered data from the questionnaire would be use for

academic purposes only. The researchers will assure the respondents that the information to be

gathered in the instrument would strictly confidential and anonymity of their identities would be

constantly maintained. This study will be conducted with an utmost reliability.

Definition of Terms

The following terms are described operationally and conceptually;

Online Marketing. Online marketing or digital marketing is a marketing aspect that

promotes internet and online digital technologies such as desktop computers, cell

phones, and other digital media and platforms.

Social Media. Social Media is a term used for the interaction between groups or

individuals. They produce, share, and sometimes exchange ideas, images, videos,

and many more over the internet and virtual communities. It is a platform for

people to discuss their issues and opinions.

Life Insurance. It is a deal between the insurer and the policyholder. A life insurance

policy ensures that the insurer provides the amount of money to the designated

beneficiaries when the insured policyholder dies in return for the policyholder's

premiums in their lifetime.

Life Insurance Agent. A life insurance agent is a licensed specialist representing the life

insurance business of the purchaser.

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Creswell, J., & Creswell, J. (2017). Research design: Qualitative, quantitative, and

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Donthu, N., & Gustafsson, A. (2020). Effects of COVID-19 on business and

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Dumpe, M. (2015). Online Marketing Issues of Real Estate Companies: A Case of

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 Survey Questionnaires

Title of Research: Level of Effectiveness on the practices of insurance sales agents in Ozamiz

City

Profile of the Respondents

General Instruction: Please answer the following questions by filling in the space provided or by
putting check (/) on the appropriate parenthesis. You can help by giving your honest answer.
Please do not leave any item unanswered.

Name: (optional) _________________________

Company: _________________________________

General Instruction: Please answer the following question by putting check (/), using Please do

not leave any item unanswered.

Part 1. Level of agent respondents in targeting sales amidst pandemic in terms of selling

mechanism

5-Strong Agree 4-Agree 3-Neutral 2-Disagree 1-Strongly disagree

Selling mechanism 5 4 3 2 1 Total Mean

 1. Utilizes social networks and websites in

advertising and selling.

2. Gather more people through utilizing online

meetings and conferences.

3. Utilizes various online applications to perform

business transactions.

4. Utilizes online platforms to connect and update

clients consistently about the selling process they

applied.

Total Mean

WTable. 2 Survey Questionnaire

Part 2. Level of agent respondents in targeting sales amidst pandemic in terms of Learning

and development

5-Strong Agree 4-Agree 3-Neutral 2-Disagree 1-Strongly disagree

Learning and development 5 4 3 2 1 Total Mean

1. Utilizes social networks and websites to enable

learning and development in business

2. Utilizes online platforms to connect co-workers

in order to ensure the aalignment of the overall

business strategy of the company.

 3. Utilizes online platforms to discuss to the co-

workers the aavailability of corporate learning

tools & techniques.

4. Utilizes online platforms to develop co-workers

capabilities and create values-based culture.

Total Mean

Table. 2.1 Survey Questionnaire

Part 3. Level of agent respondents in targeting sales amidst pandemic in terms of service

and quality control

5-Strong Agree 4-Agree 3-Neutral 2-Disagree 1-Strongly disagree

Service and quality control 5 4 3 2 1 Total Mean

1. Utilizes online meetings and conferences in

service trainings of workers.

2. Utilizes online platforms to empower co-

workers in terms of meaningful service

competence, self-determination, strategic

autonomy, and impact.

3. Utilizes online platforms to inform service

workers about the rewards in their work.

4. Utilizes online applications to connect and

listen to co-workers and the company.

Total Mean

Table. 2.3 Survey Questionnaire