Saturday, July 14, 2007

Insurance company should set a good example

I had an interesting conversation with an adviser from a large life insurance company. Here are his comments about his company's business practice:

* their top management is measured by head office, mainly on new business

* a significant part of the new business comes from getting their customers to terminate their existing policy, and buy a new policy

* this is bad for the customer, as they lose on the heavy charges

* but it is good for the company's profits and the agent's commission.

The adviser felt bad about this practice and was not willing to take advantage of his customers. He is not active in sales now.

I commend this adviser for his ethical approach. It is important for the insurance company to set a good example, so that the advisers can emulate it.
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1 comment:

Anonymous said...

All the insurance companies have one goal, the bottom line; production; market share. These have to come from new business. The agents are pushed or pulled by personal reasons to meet
the companies' target. Do the companies care how the agents get their business? They only care when they are in the spotlight of the regulator. Companies close one eye and some two eyes especially when they desperate to meet some targets.
This adviser must be commended for taking a stand. There are very few agents with such ethical and moral standard.Majority are merciless. They do anything, I emphasise ANYTHING, to get as much out of the poor customers. This is what is happening in our life insurance industry. sad to know.

July 21, 2007 4:51 PM

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