SM Goh calls on insurance industry
to keep insurance protection affordable...Mr Goh said studies have suggested that Singaporeans are under-insured.
He added that the MAS would help consumers make informed decisions when buying insurance.
It will do so by working with the industry
It will do so by working with the industry
to enhance transparency in disclosing what insurance products like a Whole Life Plan contain.
You think Mr. Goh's call will be heard and heeded? Will NTUC look beyond the vivolife, revosave and reach and APIs and all the crap products and live up to its name as cooperative, social enterprise? That day the sky will crash down on them, especially the insurance salesmen disguised as financial consultants.
ReplyDeleteAs they say this is their DNA and their DNA is selfishness, greed and someone in the company's glory.
Wait a minute.....all is not lost...The day of reckoning is here, for both the agents and the company perhaps IF THEY DON'T CHANGE AND BE REVOLUTIONISED.
The just released 'Customer Knowledge Assessment' requirement by MAS is just the beginning of the end. NTUC's agents cannot behave like stock brokers and remisiers anymore when selling ILPs.Worse the conmen's day is numbered.
I am disappointed with Mr. Goh is MAS didn't include life Insurance to require the "Customer Knowledge Assessment'. If MR GOH is sincere about helping the ordinary folks he must make sure the ordinary folks get a fair dealing outcome and which the folks are NOT but getting rotten deals...the agents unscrupulously squeeze them of their hard earned money.
NTUC agents must stop being salesmen, snake oil and koyok salesmen and start advising correctly and lift up the name of social status and live up to the calling.Stop product peddling and pushing which ntuc agents are well known. The senior management must STOP calling them Sales Champion and start calling them Financial Consultant Champions to reset their mindset otherwise these agents will continue to be salesmen, conmen and conwomen.
Having said that, I doubt NTUC especially the senior management will ever heed the call.Their pocket will be hit, their greedy agents will lanquish and eat shit or grass.
Mr. Goh, as Chairman of MAS must help the ordinary folks and protect them from the charlatans in the market place. Right NOW almost every consumer is keeping a snake or a wolf in their closet and only to discover them 20-30 years later..Anecdotal evidence is aplenty in this blog and other blogs.
Mr. Tan,
ReplyDeleteI find the remark funny. Haha.
Wa Lau Tan
Recent LIA report on the sale of life insurance shows average sum assured SOLD was only about $50K and death CLAIM about $47K . Each year the figures hover around this amount.
ReplyDeleteWorse, it was reported that the insurance agents were doing fact finding and the figure was 72% of the cases were with full or partial fact find.This figure seems to conflict with the sum assured sold. If I were the president of LIA I would be ashamed
and look stupid at these figures.
This is exactly what is going in the industry. The insurance agents and the companies are in cahoot to con the consumers. The companies interested in APIs and the agents interested in high commission and that is how the agents ONLY push wholelife , anticipated endwoment and other con scam products that benefit both agents and the companies , all this to the detriment of consumers. Under insurance is sure the result and worse money no enough when consumers retire. Do the companies care about their social responsibilities? Worse ,does the social enterprise care? They may say one thing but do another.Their agents are alll greedy and the companies just pander to their greed and exploit their unscrupules and lack of conscience.
It is time to weed them out and hang a few to send the right message.
Well, SM Goh( of MAS) finally took note of the in-adequate level of insurance. Next, he and his regulators need to dwell more into the nitty-gritty. Too much 'hands-off" / light touch" policies for too long, if you ask me.
ReplyDeleteSenior officials in MAS has been talking for several years about the need to sell term insurance to provide better insurance protection. The message from SM Goh Chok Tong is not near.
ReplyDeleteThis message has fallen deaf ears in the past. Why should anyone pay attention this time to the same message?
Insurance companies make big profits by selling whole life and investment linked insurance. MAS allows them to offer predatory products that take away 50% of the accumulated savings.
Why should the insurance companies want to sell term insurance, when they can make much better profit from the other products.
If SM Goh or MAS is serious about changing the situation, they should get down to the ground and find out what is really happening.
MAS should set a law saying all insurance companies need to pay their employees/ agents a basic salary. Once these people's basic livelihoods are secured, then they don't need to lie to people to sell life insurance. Otherwise, these insurance companies risk appearing as "anti-social" enterprises.
ReplyDeleteThis what SM Goh and MAS have to do:
ReplyDeletei) All insurance products are not allowed to be sold directly from the insurance company. They are only allowed to be distribute to IFA agencies. No tied agent allowed.
ii) Allow buying direct from IFA agencies without going through IFA. Consumers just need to fill in a detailed questionnaire. IFA agencies should give the best premium and discount for those who chose this option.
iii) All IFA agencies must be able to distribute all insurance products from all insurance companies. IFA agencies must be able to set premium and discount, to enhance competition. They are not allowed fix premium rates as this is against Competition Act.
iv) MAS and CPF must educate consumers.
v) CPF should come out with group insurance scheme for all its CPF members, similar to the SAF-Aviva group insurance scheme, to cover all Singaporeans and PRs. Rates should be similar to what SAF-Aviva is offering.
We have our reservations, the GE is so near, and all of a sudden, there are various policies out to protect the people's interests.
ReplyDeleteRemember SM Goh said Govt is pushing to attain a Swiss standard of living for us, and now what happens, some are able to attain an above standard, while the majority's standard is regressing.
Looks like empty talk again.
Unfortunately, the government will not stop the insurance companies from whole life and investment linked insurance because the guaranteed part of the insurance is done by buying government bonds which are expected to be safe. I knew a person formerly from MAS that said that because of these insurance companies buying the government bonds, the bond interest rate can be drastically reduced. This facilitate the government in issuing government bonds cheaply to finance their debt growth model of increasing our GDP.
ReplyDelete