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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