Tan Kin Lian's Blog: Improve the business practices

Thursday, February 11, 2010

Improve the business practices

Somebody attacked me for "lambasting" the practices of banks and insurance companies after I "left the industry".

I believe that banks and insurance companies can play a useful role in the economy. They should adopt good and fair practices, which they had done in past years.

In recent years, several bad practices had taken root in the relentless drive for bigger profits. Some of these practices were unfair and unethical, and could even be illegal (if the authority were to take action). My purpose is to point out these bad practices, so that the practitioners will realize the difference between good and bad, right and wrong.

A few cynics also attacked me for being idealistic. I do not post their comments. If they dislike the views expressed in this blog, they are not required to visit this blog. If they wish to express their views, they can do so without attacking me personally or attacking my views.

I wish to point out one specific good practice. A few months ago, Great Esatern Life, with the approval of their parent OCBC Bank, decided to give 100% refund to the investors of their investment linked product that had were invested in structures similar to the Pinnacle Notes. Many investors accepted the refund offer, and were relieved of the stress of watching the value of the notes drop, as more entities entered into default. This move caused several hundred million dollars to Great Eastern Life and OCBC Bank, but were appreciated by the policyholders.

Tan Kin Lian

13 comments:

Tan Kin Lian said...: Some people posted comments accusing NTUC agents as being the people responsible for attacking me. I blocked these comments as I do not wish the majority of the NTUC agents to be unfairly attacked.

But, to be frank, some of the attacks against me appear to come from that source, based on the statements that were made.; February 11, 2010 8:44 AM
Anonymous said...: toyota and honda used to produce affordable and reliable automobile. What happen now ?

Bad practices and quest for profit are the roots of evil.; February 11, 2010 9:09 AM
Robert Tan said...: As a general rule, I think we should try to avoid attacking a person.

The focus should be the points raised rather than the person, except maybe if the person himself is a dubious character, then this may be less clear cut.

However, in presenting a point or points for criticism, it is also important to be more balanced and less biased.

Not everything is so straight forward Many things have pros and cons. In focusing on the cons, one should also be prepared to give due weight to the pros. Conversely, in supporting a viewpoint, don't just give the pros without highlighting the cons as well.

As they say, half truths can be as misleading as lies.

Sometimes, one can agree with the points raised. Sometimes not. Whether one agrees or not is not so important. Sometimes, we just may have to agree to disagree. What is more important is that there is a fair representation of the facts so that what is being discussed is not based on misinformation or half truths.

Credibility is important. Otherwise, only certain groups of people may be attracted to a blog that reflect their views. And we may get the impression that everyone agrees with us. This applies in general to all blogs, new and old media.

Of course, the blog owners or media owners can say I only want certain audience and tell others to go away. That is their perogative. The only risk is that this may limit their reach or circulation and they may not be able to get an accurate feel of responses to his views....; February 11, 2010 9:11 AM
Anonymous said...: It is very obvious that the attack is from that source. They are feeling the heat from your criticism and exposing their products and their incompetence. These agents depend on wholelife and endowment like vivolife and revosave to live off the blood of their clients. If these products are exposed and consumers stopp buying they have no other skills. They are in fact the best koyok peddlers in the industry or known as the super dupers or sales champions.No other descriptions fit them. They are definitely no financial consultant as some one said their hands shake when asked to perform calculation.; February 11, 2010 9:16 AM
Ah Seng said...: Many people are polluting the world ...as a result of selfishness and greediness.
公道自在人心。; February 11, 2010 9:30 AM
Anonymous said...: Pls continue to speak up, as with all of us. If we all speak what we feel and be responsible for our speech. the country and society will see better days.; February 11, 2010 11:00 AM
Anonymous said...: Given your background and experience, you are the best gatekeeper for the insurance industry in particular and financial issues in general. It is understandable that those whose practices are being exposed feel the heat and therefore prompted to action by attacking you. Just ignore them and continue to do what you think is right. You may be the last gatekeeper. Without you, more people will be duped and conned and it is precisely this is what these attackers want to achieve. Attack the shepherd so that he leaves and leave all the sheep to the wolves. That is their objective.; February 11, 2010 11:35 AM
Anonymous said...: This FT who took over your seat has no compunction about fleecing their customers. What he says and what he does is typical of evil doers.The satan speaks of good all the time. You know he isn't good but evil. Likewise people who speak of goodness but lie through their teeth isn't to be trusted.; February 11, 2010 1:59 PM
Anonymous said...: Mr. Tan , ignore those ungrateful ntuc agents. They forgot in those days the hands that fed them,their family and sent their children to the university. It is not worth it.For a slightly more commission they are willing to switch to the new camp.What loyalty? What conscience? It is greed!!!; February 11, 2010 8:35 PM
hph said...: I am thinking hard why OCBC is able to dispense good practice and not the likes of UOB/DBS etc? It is probably due to the controlling LEE family that is well known to practise philanthropy for decades and not obsess in making profit, resulting in GREED GREED GREED!!!; February 12, 2010 3:48 AM
Concerned said...: " A few months ago, Great Esatern Life, with the approval of their parent OCBC Bank, decided to give 100% refund to the investors of their investment linked product that had were invested in structures similar to the Pinnacle Notes."

Whethere there is going to be a refund or no refund, it depends on the people managing the company that chern out those products. Some managment are more enlightened and realised their previous errors and make good those errors by refunding in full those investments. They know that with the goodwill generated they should be able to recover those losses from future sales. However, there are managements who sole and only aim is to generate more sales and more profits, and structure those products such that all the risks passed to investors and they kept all the extra profits so that they can have extraordinary bonsus and commissions.
This type of company and management, investors can see for themselves now and should avoid them like a plague in future. Some of those FLs still have the cheek to sell new financial products hoping to fool a new generation of investors.; February 12, 2010 3:01 PM
Anonymous said...: Like ntuc the ceo called them new life style products for gen-Y, low return or protection never mind so long it is cool to have them.
If it is true the future generation is finished becuase their needs have changed from having money to fresh air and stylomilo and perhaps sex at Sentosa beach.; February 12, 2010 5:33 PM
Anonymous said...: Remember he is a psychologist now.He thinks he can psycho consumers into buying a rubbish product by shifting their attention from return to illusionary lifestyle .Isn't it a conjob? like magic stone conman.
Of course without the greedy insurance agents disguised as financial consultants many of the consumers would have escaped being conned.; February 12, 2010 11:54 PM