Monday, February 26, 2007

Aviva advises to "Buy Direct"

There is a big advertisement from Aviva in Today paper, encouraging the public to "buy direct" from them. They offer an attractive product that pays 3.5% interest rate.

Insurance agents will be facing more competitive pressure from the direct channel. I strongly advise the agents to adopt technology, improve their productivity and reduce the cost to their customers. They should continue to add value.

This is the best way for agents to remain relevant in the competitive market.
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4 comments:

Anonymous said...

May I ask how you suggest that agents do this?

February 27, 2007 3:42 PM
Anonymous said...

Dear Harro

As a policyholder, i will be impressed if the servicing agent is knowledgeable and gives me that level of confidence to buy the product and from him. When i need advice, and help (eg in times of claim), be there and be prompt

If he is just a postman, and need to consult his office or managers or underwriters on most things, or copy in his managers or underwriters in emails for assistance because he is not sure or confident, i cannot see why i should buy insurance products from this agent (or any agent)

Common sense tells me i will be better off buying straight from the insurance company and enjoys a discount (if available).

On the other hand, if the agent can demostrate his value, i am happy to pay a higher premium that factor in the commission. I am afterall in the service industry

March 01, 2007 12:34 AM
Tan Kin Lian said...

This is my reply to Harro.

My advice is for insurance agents to be prepared to sell simple products and enjoy a lower rate of commission.

They can still maintain the earnings through a higher volume of sales.

By using technology, they can reduce the time to make a sale.

If they earn a lower rate of commission, the product will be lower priced and give better value to the customers.

All parties must agree to make a change in the way things were done in the past. This is how the insurance industry can enter the next stage of growth.

March 02, 2007 5:30 PM
Thomas Phua's Blog said...

An agent must be able to value add as well as to be able to make use of technology.

Service is two ways. Clients must be able to appreciate the agent and develope to a good long term relationship.

Some time when one expects unreasonable service, agent will also give up servicing demanding client.

Such customer I term them "asstomer".

Some service manager term them customer from hell, but I have encountered once in my life time, "customer from beyond hell". I was more than glad to give him over to be service direct, even the direct service gave up on him and blacklisted him. I could never believe there is such a type of customer until I really met this one.

Thankfully most of clients I serviced become my friend.

March 04, 2007 10:20 PM

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