The agency manager, who has several active agents under him, is now considering to move to another insurance company. He asked my views on the company to move to, and the future prospects of the life insurance industry.
We discussed the following issues for about one hour:
- How will the move affect the existing clients?
- How he can help the existing clients by remaining with the same company
- Which life insurance company offer the best prospect for an agent or agency manager
- Should he move to an independent financial adviser firm?
- Can he provide advice to clients for a time based fee?
After the discussion, he became clearer about the options and will be giving more thought to the matter. He appreciated the advice and my time and decided to made a donation of $100 for FISCA (financial services consumer association).
Tan Kin Lian
6 comments:
kin lian, $100 for an hour of your time is very cheap but u help him as a friend. othwise it costs lot more.
It is a voluntary donation on his part. Other people expect to get time and advice for free.
kin lian, your help to the minibond and pinnacle notes holders are invaluable. thank you.
I see a radical change in the future of the industry.
There will be NO tied agents.All will be individually licensed. This is almost in place and awaiting implementation. Like the real estate business a public register detailing all licensed advisers, their qualification and what they can and cannot do. Also the complaints and misconducts they committed.
The insurers and the fund houses will be the manufacturers and the distributors are the licensed advisers.
No more commission carrying products and direct purchase of products for consumers is for implementation of the recommendation .To implement or execute the plan, the consumers need a prescription letter, report to show the manufacturers if they want to buy the products direct.The advisers can implement on behalf of their customers, free or charge a token fee or small commission from the manufacturers.
In US it is already moving to this direction and so is Australia, UK and Hong Kong.
Singapore should follow soon.
This is the only way to level the playing field. It is also to weed out the product pushing agents who don't add value but mess up their customers' personal finance.There will be ONE SET OF RULES for every player. Currently there are so many and the salesmen, the product pushers, the conmen and the magic stone conmen are the ones who dominate the industry and screw up the industry.
The AXA/Finexis episode should open up the eyes of the regulator as to what both manufacturers and the distributors can stoop to do.They can collude to rob the consumers and knowing the insurance agents are eager partners ever ready to abet the manufacturers if given enough incentives/commission to rob the consumers. It is NOT AXA/Finexis only, all the insurance companies do this with their agents all the times. Incentivize the agents with a lot commission so that they are willing and eager to do and say anything to promote the products especially new products. Usually these products are dubious and rotten. Unfortunately consumers are blur and unwary but they trust their agents enough to buy them.
Insurance companies know the best way to market a new rubbish product is through the agents and so do others if they have a new a product.
In fact I feel that an insurance company which deal with client thru online and giving customer service thru web or phone services will prosper in the future for insurance industry. People are getting more educated and are able to read and understand the policy much better than in the 80s. I strongly feel that there is no need for insurance agent in the future and online selling is the way to go. Low insurnace premium due eliminating the agent fees is the way to go.
Hallo everyone, Thanks for sharing your views and experiences. As told by Lion, seems like online selling would be emerging trend in insurance. Though would like to know your thoughts on the future prospects of life insurance sales. Thanks.
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