By Lorna Tan, Finance Correspondent

BRITISH insurer Prudential Assurance is tempting insurance agents from other insurers to jump ship by offering a 'buy-over' package. Its target is to recruit 2,000 agents this year, but its aggressive recruitment stance has made some rivals see red.

Prudential is offering to pay these new recruits an average of their past two years' income - spread over the next 24 months - plus the usual sales commissions earned from new sales.

But according to market sources, at least one insurer has complained to the Monetary Authority of Singapore about Prudential's aggressive campaign tactics. These include e-mail messages and direct calls to rival agents, as well as dropping off recruitment letters at agency offices located at rival insurers' premises.

'Recruiting agents is okay, but the way Prudential is doing it is not right. You can put out an advertisement or talk about your scheme. But dropping off letters here is like walking directly into a rival's office and recruiting,' said an agent who declined to be named.

Market observers said the Prudential package is not that attractive, given that it requires new agents to sell as much as they have done over the past two years. The poor economic climate means that this is not possible, said one rival agent.

The money offered in the 'buy-over' package will help compensate the new recruits for the commission they would have received over the next five years on already-sold policies had they stayed with their previous insurer.

The Straits Times understands that some agents from AIA and NTUC Income have moved over to Prudential, but it is not clear whether they were lured by the 'buy-out' package.

When contacted, Prudential declined to provide more information about its initiative.

Its chief executive, Mr Philip Seah, only said that Prudential aims to grow the current pool of 3,500 agents to 4,500 by the end of the year. Taking into account agents who may leave of their own accord, this means recruiting 2,000 agents this year.

It has witnessed a 30 per cent increase in agents joining the firm so far this year, compared with the same period last year.

'Our agency force is an important asset to the company, and we have and will continue to recruit from all viable sources as we grow this pool of professional financial consultants.

'We have attractive remuneration packages that are commensurate with the respective qualifications and experience of the candidates,' said Mr Seah.

Other insurers are also recruiting, but without the lure of a 'buy-out' scheme.

United States insurer AIA, with around 4,000 agents, expects to recruit more than 1,000 new agents this year, while Great Eastern Life wants to add 60 to 80 agents a month to its current 2,534.

Canadian insurer Manulife said it is looking at a modest 15 per cent increase over its current 1,300 agency strength.

The head of a local insurer, who did not want to be named, said that his company does not target existing agents from other insurers.

This article was first published in The Straits Times.