Churning

Churning occurs when sales agents urge a client to cash in an existing insurance policy after a short time and replace it with another. It is a lucrative practice because agents earn commission on each new policy they sell. It is also illegal.

- Used in planning, organizing, and controlling business operations.
- Used when setting KPIs, policies, procedures, and improving processes.

- Example: Management applies **Churning** when designing policies and monitoring performance against targets.

- Why it matters: Improves execution, accountability, and decision speed while reducing operational waste.