Thursday, June 23, 2016

MAS Balanced Score card

Raymond Fong read the "balanced score card" guidelines from the Monetary Authority of Singapore set out here. He made this comment.

I can tell you that none of the few agents who sat me down over the years did even a quarter of those listed in the guidelines. They only pushed me products and did not explain the products in breadth nor depth to me. 

When I started commenting about the low rates of return and upon my pointing out that the low rates included the non-guaranteed portion, they would then ask me how much I expected the rates to be. When I said 10% pa, they told me they were not investment but savings that were better than banks'. 

I replied that the time horizon was too long at 20-25 years and the exclusion of non-guaranteed rates made the returns even lower and which couldn't even cover inflation rates. That was when they would show their disinterest in me and started to leave me alone. 

What kind of professionalism and attitude were those? How many parts of the guidelines have they not adhered to? How were they regulated for their treatment of me as their potential client?

My view:
The balance scorecard is MAS's approach to solve the problem of mis-selling of insurance products. It does not seem to achieve its purpose. The mis-selling continued to be rampant.  MAS needs a new approach to address the problem, rather than rely on impractical guidelines.


Anonymous said...

To make Balanced Score Card work, MAS must conduct audit on ALL the insurance companies and then enforce it. The 2 parties involved in the internal audit must be held accountable and subject to punishment too. How can the independent sales auditor is an employee of the company? As long he is paid by the company he is not independent Come on MAS, clean up the act.

Anonymous said...

Currently all the insurance agents are salesmen or conmen peddling snakeoil products and they don't comply with the balanced score card. We are wondering why MAS is not investigating the insurance companies. The roadshows is an example and MAS can do mystery shopping to find for themselves. Is MAS complicit in this game, pretending?

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