The Shifting Landscape of Financial Sales: Fewer Card Agents, More Insurance Advisors
The financial services sector is undergoing a notable transformation. Even as the number of credit card sales agents is steadily declining, the ranks of insurance advisors are swelling. This divergence, highlighted by recent data, signals a broader shift in how consumers access and prefer to purchase financial products.
The Decline of the Card Agent
As of January 2026, You’ll see just 3,295 credit card sales agents operating nationwide, a significant drop from the 589 fewer than the previous year. This figure represents a dramatic decrease from the over 20,000 agents active a decade ago in 2016. Industry experts attribute this decline to the expansion of online and mobile channels, coupled with a challenging environment for traditional sales agents.
The rise of fintech comparison platforms like Naver Pay, Toss, and Bank Salad is also playing a key role. These platforms allow consumers to easily compare credit card benefits, annual fees, and rewards programs, reducing the need for direct interaction with a sales agent. Card companies are also seeing reduced marketing costs through these platforms.
The Rise of the Insurance Advisor
In contrast to the shrinking card agent population, the number of insurance advisors continues to grow. As of the end of 2024, there were 651,256 insurance advisors, up from 603,974 the previous year and 589,509 in 2022. This growth is particularly pronounced within both direct insurance companies (up 21,878) and insurance agencies (GA), which saw an increase of 25,125 advisors.
The complexity of insurance products, and the need for personalized advice, are driving this trend. Unlike credit cards, where consumers can readily compare options online, insurance requires a deeper understanding of individual needs and risk profiles. The perception that AI is not yet capable of adequately addressing these nuanced requirements also contributes to the continued demand for human advisors.
AI’s Role: A Different Trajectory for Cards and Insurance
The adoption of artificial intelligence (AI) is proceeding at different paces in the credit card and insurance sectors. AI-powered comparison and recommendation tools are readily applicable to credit cards due to their relatively simple product structure. However, in the insurance realm, the complexity of policies and the importance of tailored advice mean that AI is currently viewed as a supporting tool rather than a replacement for human advisors.
Insurance companies are exploring AI for tasks like summarizing complex policy language and providing customized benefit suggestions, but the core sales process still relies heavily on the expertise of advisors. Concerns about potential misinterpretations and increased complaints are also hindering the widespread adoption of AI-driven insurance sales.
Financial Group Restructuring: Insurance Gains Ground
Recent financial data reveals a shift in the profitability of major financial groups. The combined net profit of life insurance companies within KB, Shinhan, and Hana Financial Groups exceeded that of their affiliated card companies in the first half of 2025 – a first in over a decade. This trend underscores the growing importance of the insurance business within these financial conglomerates.
Card companies are facing challenges such as rising delinquency rates and increased operating costs, impacting their profitability. Insurance companies, are benefiting from increased demand for their products and a more favorable regulatory environment.
Frequently Asked Questions
- Why are credit card sales agents declining? The expansion of online and mobile channels, coupled with the rise of fintech comparison platforms, is reducing the need for traditional sales agents.
- Why are insurance advisors increasing in number? The complexity of insurance products and the need for personalized advice are driving demand for human advisors.
- Is AI replacing insurance advisors? Not yet. AI is being used to support advisors, but not to replace them entirely, due to the complexity of insurance products and the need for tailored advice.
- What is driving the shift in financial group profitability? Challenges faced by card companies, such as rising costs and delinquency rates, combined with increased demand for insurance products, are driving this shift.
Did you know? The number of card agents has fallen by over 83% in the last decade.
Pro Tip: When choosing a financial product, consider whether you need personalized advice or if you can confidently navigate the options available online.
Explore more articles on financial trends and industry insights on our website. Share your thoughts in the comments below!
Worth a look
