Wednesday, December 16, 2015

MAS Balanced Score Card

John Thor Wu asked:

Mr. Tan, what's your view on the latest Balanced Score Card implemented to so called improve the insurance sector?
My view is that MAS is wasting so much monies to achieve so little things...when they can actually use that monies to make sure consumers don't, in the first place, buy EXPENSIVE insurance related products.
But maybe they scared that many insurance agents will leave and unemployment level shoot up. The very true is with the implementation of the BSC, insurance agents will CONTINUE to sell THOSE super expensive products because they will have their way to protect themselves and at the same time consumers continue to waste their monies....
Insurance is not all useless but consumers need to either find the right agents, or educate themselves, plus MAS to filter out those products that do NOT meet the criteria in term of costs (e.g CPF-IS scheme).

I am not familiar with the Balanced Score Card. I am not able to comment on its goals and its effectiveness in achieving the goals. I usually prefer to identify the root of the problem and find the right way to address it, rather than to adopt an approach that sounds good on paper, but is not clear to most people. 

My approach towards providing insurance protection and long term savings for consumers is:
a) Get insurance companies to offer products that are suitable for consumers and ensure that the premiums are charged fairly.
b) Make it possible for the agents to make a living by selling these products, e.g. to reduce the time taken to sell the products, so they can earn enough on the modest commissions that the customers can afford
c) High net worth individuals who need special financial advice should be encouraged to approach experienced and qualified advisers and to pay a fee.

I will give my comments on the MAS balanced score card approach when I learn more about it.


Anonymous said...

MAS should not be afraid that a lot of agents leave the industry, especially those incompetent and dishonest ones. The current population is too high and Singapore can afford to cut as much as 50% of agents and to deploy them into other indsutries where they are much needed. Imagine those who are trained for other industries joined the insurance indsutry. Why? the answer is easy and fast money and legal to con the public by selling them only high commission products. This is very good reason why MAS should be strict to ensure the buying public is protected from these conmen and women.
The Balanced Score Card is good but it is not enforced it will become a joke and MAS is good at this, ie turning the past directives into jokes. The question in the mind of the public is , on whose side is MAS? Not difficult to answer......MAS's attitude is "die is your business". In order to be a good regulator it must be strict and fair, For example, like the recent shield plan hospitalisation claim of $300,000 and the insurance company at first refused to pay, MAS should cancel the license of the agent and the company fined for at least $10 millions . This is to deter other insurance companies and their agents
doing from monkey business. It must be steep to send the message that MAS means business and no nonsense instead of just slapping on the wrist. Be like their counterpart UK FCA.

Anonymous said...

MAS should should have more of this Balanced Score Card thing and raise the standard of the advisory processes to put clients' interest first. Any breach should attract heavy punishment.
The above comment is right. There are too many insurance conmen and women. MAS must get rid of at least 50% of them allthough 95% of them are still bordering on conmenship.

Blog Archive