Someone said that MAS had proposed a direct channel for consumers to buy insurance directly from the insurance company and enjoy lower cost, due to removal of commission.
I did not read this news. Can that person find out the source of this proposal and send it to kinlian@gmail.com
It was mentioned sometime ago by MAS that insurance companies should have direct portal for savvy consumers to buy.
ReplyDeleterefer to the speeches of MAS , eg the one given to LIA luncheon meeting. In fact, MAS alluded to removal of commission many times and tehy said they want to follow other jurisdictions. UK is removing it in 2011.
ReplyDeleteThis is good because commission is root cause of all mis-selling and unethical practices. It should be removed as soon as possible and introduce a more equitable remuneration system like fees.The fees will vary according to the standing of the advsiers like the lawyers. of course fees have to be agreed first between the consumers and the advisers. It is more transparent and the customers know what he or she is getting and paying besides the products. The cost to the customers is inevitable low compared to the high commission and yet the customers get less and only for form filling.
It is good also to weed out the dishonest and incompetent agents so that the risk is lower for consumers.
hardly anybody will buy insurance that way
ReplyDeletebecause not many insurance agents are qualified to charge fees.
ReplyDeleteNow that I know how the insurance work. I will advise my children not to buy any insurance. Even if you are insured, there is no guarantee that insurance company will pay. I have to play rough the last time in order to get my money from the insurance company.
ReplyDeleteAnon1149pm, you will be doing a great deservice to your children and grandchildren who will be relying on your children if you do advise them not to buy insurance. Ask yourself, if an agent tells you you're underinsured, what will you think? "Really meh, trying to earn my commission. Go and die."
ReplyDeleteNow during the claim process, the company says you're uninsured for that event. What's going on in your mind now? "Buy insurance no guarantee to claim, next time don't buy."
This is the dual personality we all are.
If I say we are all underinsured, including myself. Do you believe? Will you do anything about it? I bet not. I am also human, I will tend to put the blame on external parties before thinking it's my own fault.
Back to topic. Yes, hardly anyone will be buying insurance through these channels, hence there shouldn't be an issue for existing agents. Such channels will actually be very beneficial if consumers are properly educated, which we are far from. Ask anyone what Eldershield is for to feel it firsthand.
Ask advsier and they will advise you and they know they get paid if the advice is to their customers' interest. But the salesmen and women? The insruance agents are only interested to sell and only products that will earn them huge commission.They are not interested whether you are properly insured or not. That is your business.I have financial planners who advise me on HPS, eldershield knowing they don't get commission from selling them.They advise on CPFLife, also no commission and best is they advised me NOT TO BUY annuity from them.
ReplyDeleteWhat we want are honest planners and competent ones too and those who come around saying they are sincere, caring , providing me this service and that or threaten me that no one will claim for me or my family as if only agents can handle claims.These are despicable agents you must avoid and who add nothing but disasters especially they are not competent.
In US, Australia and UK there are direct channels for savvy consumers to buy life insurance product free of commission or no load insurance.
ReplyDeleteFee based financial planners will issue 'prescription' to their customers to buy from insurance companies or fund houses.
The whole idea is to bypass the salesman insurance agents who don't give anything but form filling service.Sometimes the consumers can save quite a fair bit of cost by going to the fee based planners and even if no saving the service and advice is value for money and which you don't get from salesmen and product pushers.
I am glad Singapore will soon follow these countries to implement fee and to remove commission from all products.
Commission is known to have caused all the fiasco and is behind all the unethical practices and fraud.Singaporeans are under insured becuase of conflict of interest caused by commission
I heard MAS has given hints of this change.