Tan Kin Lian's Blog: Give better value to consumers

Wednesday, May 19, 2010

Give better value to consumers

Some people, presumably insurance agents, dislike my postings on the bad practices of life insurance companies (i.e. cut in bonus, high charges, low yields, rejection of claims) and continue to make personal attacks against me in their anonymous postings.

It is better for these people to realise that the life insurance companies should change its bad practices and treat consumers fairly. This would be beneficial for the long term growth of the industry. Any business can thrive only when it offers value to its customers.

I also hope that my postings will prompt the insurance companies to change its products to offer a better return to its policyholders. Lately, I saw from some benefit illustrations that the distribution cost and effect of deduction has been reduced, i.e. give better value to consumers. Although they are still high, it is a step in the right direction. More can be done.

REQUEST. Please do not use this posting as another opportunity to "bash" the insurance agents or products.

Tan Kin Lian

9 comments:

Anonymous said...: I invest in some Insurance Policies but throughout my life, at age 63,I've noticed the high turnovers amongst their Reps. I heve lost confidence in the Industry but fortunately for me some of my endowment policies are reaching maturity.

Best part, some of my earlier Reps,
job hop to either selling LandBanking or in the Property Market. These Reps. are all money looking and they tend to move around as long as there is Money to be made and NOT loyalty to the Insurance Industry.; May 19, 2010 9:34 AM
Wilfred Ling said...: 1. Never "invest" in an insurance policy. Only buy an insurance policy for insurance cover sake.

2. Due to increased competition for advisers in the market place, there are more and more IFAs firms that provide immediate vesting. This means that advisers owns the client base. If the adviser leaves to another IFA firm, the adviser has the right to service the policyholders and as well as to continue to earn any recurring commissions (if any). However, this works assuming that the new firm allows this practice. If the adviser jumps from IFA to tied-agency, the latter is unlikely to agree because the latter is an Agency contract which prohibit the adviser from representing other insurance companies.; May 19, 2010 9:55 AM
Anonymous said...: Concerning LOYALTY:

Is there a special reward for loyalty nowadays?

- Ask the retrenched PMETs who are over 40 years old.
- how have their years of loyal service been rewarded?

- did they received fair retrenchment benefits
- or were they given one month's notice for failing their (impossible to meet)performance appraisals

The only reward for LOYALTY is CHEAPER, BETTER, FASTER until you get sacked for failing to meet the latest cheaper, better, faster performance targets in your final performance appraisal.; May 19, 2010 10:31 AM
Anonymous said...: My company has a group H&S insurance coverage for its staff and their immediate family members.

Recently my son was hospitalised for 3 days for bronchitis and the bill came up to about $1,000+. I submitted the claim to my company insurer and up till now for more than 2 months, I heard nothing from them.

When I approached my HR person, she can only tell me that she already relay the message to the insurance broker but they have not got back to her. As I read an earlier article here about how insurance companies, I begin to appreciate more.

These unscrupulous insurance companies will do anything to delay/reject legitimate claim. All for the purpose of boasting their bottomline. I really wonder is there any enthical insurance company around these days.; May 19, 2010 2:13 PM
Anonymous said...: It is amusing that insurance agents are being bashed every where.Why?
They are supposed to be doing a 'noble' job helping the poor to get out of the rut. Why bash them ? or do they help the poor?
This is interesting. I guess they are not otherwise why bash them like a bunch of useless salesmen. They must have incurred the wrath of the consumers. I find in almost all postings they are portrayed as cheats, dishonest and incompetent.
Well, the saying that where there is smoke there is fire needs looking into it.

Peace to all.; May 19, 2010 2:20 PM
Anonymous said...: What Loyalty are we talking in this globalised World???
Companies always watch on their "Bottom Line" profits and start retrenching in their forecast for more profits!

Poor PMETs get chopped and look like fools, they will tell you "No Company Loyalty" whatsoever???

Even in Gahment jobs, the so called "Iron Rice Bowl" no longer exist!

When you work, you must have Plans A,B,C & D to fall back upon.; May 19, 2010 3:18 PM
Anonymous said...: For critical illness claims, one almost has to read the claim requirements BEFORE being admitted to the hospital to ensure a successful claim.

Just take a look at how extensive the list of mendatory reports are (see below, taken from AIA's claim form).

"To enable us to proceed with the claim, it is mandatory to enclose copies of all reports, including resting ECGs, exercise stress tests, troponin results, enzymes assays, isotope studies, imaging, coronary angiography, blood tests, ultrasound, biopsy, histopathology report, CT scans, other imaging studies, laboratory evidence and any relevant hospital reports that are available."

I wonder which patient, in his critically ill state, is able to ensure that his doctor performs ALL the tests needed for his claim to be admitted?

~ A recent AIA claimant; May 19, 2010 3:41 PM
Anonymous said...: "To enable us to proceed with the claim, it is mandatory to enclose copies of all reports, including resting ECGs, exercise stress tests, troponin results, enzymes assays, isotope studies, imaging, coronary angiography, blood tests, ultrasound, biopsy, histopathology report, CT scans, other imaging studies, laboratory evidence and any relevant hospital reports that are available."

It is very obvious that AIA is trying its best to reject your claim. As you said , how satisfy the requirement.; May 19, 2010 5:26 PM
Anonymous said...: Insurance agents who keep defending the insurance companies seem to suffer from some kind of stockholm's syndrome.

They don't remember how their basic salary ($0) is actually less than maids and bangla workers. And how insurance company is actually making use of them to approach their friends and relatives to buy useless products.; May 19, 2010 5:35 PM