Wednesday, September 20, 2006

More customers now visit the business center to buy insurance


1. A customer telephoned the business centre to enquire on our Combined Funds. Our consultant arranged to meet him to present the benefits of investing in our Combined Funds. The consultant showed him the 5 slides from our chief executive officer. They highlight the low charges and better returns. The customer was convinced to place $240,000.

2. A customer visited the business center to collect the Logic9 gift. The consultant presented the FAQ on the Ideal and I-gift plans. The customer came back the following day to take up 4 Ideal policies for her four kids (saving of $180 per month for each policy) and the i-Gift of $30,000 for herself. She is using the monthly payout of the i-Gift to pay for her 4 Ideal policies.


Mm said...

I do not know why your sonsultant sold 4 x ILP regular policies instead of one policy, i.e. paying 4 x charge and 4 x policy fee.

If she can pay one lump sum $30,000, why don't she buy a $30,000 single ILP policy, paying 4 x charge and 4 x fee.

Tan Kin Lian said...

Reply to MM

The four Ideal policies are for four children. It make sense to buy a separate policy for each child.

The child can continue the poilcy on their own in the future.

Truth said...

Dear Mr Tan,

I notice that you haven't been posting some of my comments, I guess you don't quite like them I suppose :) Actually your fiercest critics are your best friends - your competitors quietly 'love' you as they monitor how Income's market share drop from 15% to about 7% this year and they 'worry' that the Income agents they have recruited may flock back to Income now that you are stepping down.

Now you may think that I'm against Income selling direct to consumers and giving less commission to the agents, actually I'm not. Dell Computers is very successful with its direct sale model, Aviva has no agent of its own, there is nothing wrong with that. Every company is free to define its own business model and level of sales commission and each business model does have its own merits.

So what is the problem that leads to you having to step down now? Frankly I think the issue lies with the way you have been handling your agents. Many agents feel that Income are stealing their clients instead of helping them increase their sales by having the consultants call up their clients, giving a discount when the consumers get direct from the business centres, forcing agents to co-pay gifts from their already lower commission that in turn 'force' their clients to come to the business centres to collect the gifts where they will be poach by the consultants. All these practices are hardly ethical and in my opinion totally unnecessary in order to implement your new business model successfully.

Personally I think you had not have much success so far is because you have been trying to straddle between 2 business models and to make matters worse, favouring one model over another unfairly. As I said in one of my earlier comment, if you really believe in it, then you should have execute it boldly by converting all your agents to consultants. Give a fair compensation to those who are not willing, and allowing the agents to continue to draw their commission which they had earned. When everyone is happy, you can then focus all your energy and marketing on the direct sale model instead wasting time and energy under-cutting your own agents. You could have set up a portal for consumers to get quotation for an income policy and focus your advertisement on getting consumers to go to the portal to do their own comparison before buying any policies from anyone else. You could also tie up with Post Office, banks and IFAs to make it easy for the consumers to buy Income policies without having to setup so many business centres. (Just remember that a distributor should never sell cheaper to its consumers than its channels who have also their own overheads and business risks to bear - this is true for any industry.) There are so many things you could have done to make your business model a success once you can focus your time and energy on it!

Well, perhaps it's too late to talk about all these now.. In any case, I hope you will make the best use of your next few months in Income and all the best in your future endeavours!

Best Regards,

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