I wish a new insurance company will be set up to provide no load insurance and funds for people who don't need the insurance agents. It is getting popular in other countries. Since a lot of insurance agents are pushing products and provide no advice it will be cheaper to buy directly from the company.Also from the KYCs almost all customers don't need and don't get advice except product advice.Then why should customers pay hefty commission? For product advice agents should only get 15% of the premium and no more after that. The rest should be discounted. If the customers buy directly this 15% should be used to cover the salary of the counter sales staff. Customers can either choose an agent to EXECUTE the deal and fill up the forms or go to the company to buy directly. For customers who want financial planning advice they pay a fee directly to the advisers and can also either implement the recommendation using the adviser or go directly to the company. This will help to improve the protection value and increase the return . This will be a win-win-win for everyone. The current model is the agents and the company win and the customers are the suckers. The commission and charges must be removed or drastically reduced and be replaced by a fairer model.
The insurance agents should be paid only 10% of the premium of the products after discount as commission for form filling and explaining the product illustration. To earn extra the agents must give extra and that is for the advisory expertise in financial planning. It is good idea that all the products should be stripped of all commission leaving 10% to reward the agents for non financial work like prospecting, visit the customers, the leg work and for product advice. This is to make sure the good competent and honest advisers survive and earn as a professional and NOT as a product pushing koyokman like many today.
Mr. Tan, you should start an insurance company to offer products with no commission or very low commission, eg 10% for wholelife and endowment. Only customers with a 'prescription' letter can buy directly from the company.
I wish a new insurance company will be set up to provide no load insurance and funds for people who don't need the insurance agents. It is getting popular in other countries.
ReplyDeleteSince a lot of insurance agents are pushing products and provide no advice it will be cheaper to buy directly from the company.Also from the KYCs almost all customers don't need and don't get advice except product advice.Then why should customers pay hefty commission?
For product advice agents should only get 15% of the premium and no more after that. The rest should be discounted. If the customers buy directly this 15% should be used to cover the salary of the counter sales staff. Customers can either choose an agent to EXECUTE the deal and fill up the forms or go to the company to buy directly.
For customers who want financial planning advice they pay a fee directly to the advisers and can also either implement the recommendation using the adviser or go directly to the company.
This will help to improve the protection value and increase the return .
This will be a win-win-win for everyone. The current model is the agents and the company win and the customers are the suckers.
The commission and charges must be removed or drastically reduced and be replaced by a fairer model.
The insurance agents should be paid only 10% of the premium of the products after discount as commission for form filling and explaining the product illustration.
ReplyDeleteTo earn extra the agents must give extra and that is for the advisory expertise in financial planning.
It is good idea that all the products should be stripped of all commission leaving 10% to reward the agents for non financial work like prospecting, visit the customers, the leg work and for product advice.
This is to make sure the good competent and honest advisers survive and earn as a professional and NOT as a product pushing koyokman like many today.
Mr. Tan, you should start an insurance company to offer products with no commission or very low commission, eg 10% for wholelife and endowment.
ReplyDeleteOnly customers with a 'prescription' letter can buy directly from the company.