My friend in Indonesia told me this story. He met an insurance agent working for a multinational company. The agent said, "Don't buy insurance from the local companies. They will not pay your claims. They are financially weak."
My friend told her, "I will report you to the Government. You are telling lies. How do you know that all local companies are weak? Have you made any research to back up your statement?" The agent was scared and never see him again.
I told my friend, "The insurance agents from a multi-national company in Singapore has been making similar statements like this over the years. This is how they can sell their high cost, low return product. They just spread lies".
A newly recruited agent working for this multi-national company recently told me that his agency manager has trained him to tell the same "marketing line". I call it a "plain lie".
My friend told her, "I will report you to the Government. You are telling lies. How do you know that all local companies are weak? Have you made any research to back up your statement?" The agent was scared and never see him again.
I told my friend, "The insurance agents from a multi-national company in Singapore has been making similar statements like this over the years. This is how they can sell their high cost, low return product. They just spread lies".
A newly recruited agent working for this multi-national company recently told me that his agency manager has trained him to tell the same "marketing line". I call it a "plain lie".
Lies and untruth and non disclosure sell. These are the easiest modus operandi of the insurance agents of both local and foreign companies.
ReplyDeleteThe fact these agents don't conduct a fact find and need analysis they have motives to con the customers because thsi is the ONLY way to find out the needs of the customers and to meet these needs with a correct and suitable product. Unfortunately because the salesmen already have in mind the products to push to customers to benefits themselves .If there is a fact find it is done to wrap and justify the product and to satisfy the requirement of the company to meet certain target of fact find and for LIA to boast to the public and MAS that the indsutry is moving towards advisory model. MAS then pretends to beleive LIA to make the CEOs happy.
Looks like a conspiracy, isn't it?
Some CEOs also came out to say they are doing this or that to help the poor and to narrow the gap of under insurance but they are all wayang, again , hopefully, to fool MAS.
BUT THEY NEVER SAY THEY ARE GOING TO TIGHEN THE ADVISORY PROCESS AND TO TURN ALL THEIR SALESMEN INTO FINANCIAL ADVISERS OR CONSULTANTS SO THAT THE INTEREST OF THE CLIENTS IS PUT ABOVE THEIR AND THE COMPANIES' bUT THEY ALL HIDE BEHIND THE TITLES OF FINCNAIL CONSULTANTS TO CHEAT THE PUBLIC AND MISREPRESENT TO THE PUBLIC THEY ARE FINANCIAL EXPERTS WHEN THEY ARE NOT BUT PRODUCT PEDDLERS.
DID YOU KNOW THESE SALESMEN ARE FINDING DIFFICULTIES TO PASS THE EASY, NO BRAINER AND PRIMARY ONE LEVEL CMFAS 8A & 9A EXAMS?
This is the standard of the industry and that is why the foreign company salesmen and local too have to resort to lies and cover up to sell products to the detriment of the consumers.
MAS, wake up to these facts and capture from HOng Kong the #1 spot as financial hub.
Since end-2008, many local insurers are training their sales people to say that overseas insurers not safe ... better buy from their local insurer.
ReplyDeleteInsurance salesmen and saleswomen are all the same the world over. Doesn't matter if local ah beng or ah lian or some smooth-talking ang moh in Armani suit looking like brad pitt.
They will twist their words and change their stories more times than they change underwear. Integrity? The only integrity they have is to the money going into their pockets.
To level the playing field there must be one set of laws or rules for all players.
ReplyDeleteFor the intermediaries to ensure level playing field.
1. commission from products must be removed
2.all advisory must follow a certain minimum standard as enshrined in section 27 of the FAA.
3.all misconducts must be investigated and enforced by the regulator.
4. all supervisory levels in the insurance companies that are involved in compliance must be held accountable if a misconduct is found. Conmpliance involves the whole hierachy, ie. from CEO down to the salesmen in pursuance of the top down fair dealing outcome guidelines.
All advisers, salesmen, financial consultants or whatever their titles from any company must be subject to the same one set of playing rules.
Confidence will be restored.