When you are sick, you visit a doctor at his clinic. The doctor treat you and charge you for the consultation.
As the doctor sees many patients in a day, the cost of the consultation is relatively low. The doctor makes a good income from the large number of cases treated. This is high productivity.
I hope that insurance can be handled in this manner in the future. If the customer is willing to visit the financial adviser and to pay a fee for the consultation, it will benefit all parties:
* the cost to the consumer will come down, as pay a net price (after removing the commission)
* the adviser can earn a good income by handling many cases each day
* productivity is increased
* the adviser can recommend the right product to serve the best interest of the customer.
Some insurance companies now allow customers to call them directly on the telephone or transact through the internet, and to give a lower cost to the consumer. I hope that this channel will be more popular in the future.
A patient visits the medical doctor because he feels medically sick.
ReplyDeleteNot many people will see a financial doctor because few will feel finacially sick.
There is a human factor involved in educating and couselling to let him know that he have a financial problem.
The Financial Doctor concept may take many more years to conceptualise unless government forces it to happens.