Tan Kin Lian's Blog: Be fair in your views

Thursday, September 06, 2007

Be fair in your views

One anonymous visitor to my blog has expressed strong views against insurance agents. Some of the comments are quite rude. I have to block them.

There are some agents who are driven by commission to act against the interest of the customers.

There are many other agents who act ethically and offer the best advice to their customers. They play a useful role to help the ordinary people to save and protect their families.

Please be fair and considerate in expressing your views.

13 comments:

Anonymous said...: Mr. Tan, my observation differs from yours.
Many insurance agents are unethical and they do not have the interest of their clients at heart. A random observation on the insurance companies' agents and postings in your blog show agents are just after the commission. They prey on naive customers who have no idea about what they buy. The customers simply trust them. Instead of giving the best the agents load expensive products and exploit the trust of the customers.
Many agents also come in the name of sincerity but they are grossly incompetent.If they are sincere the agents should make sure they are up to the standard and competence. I find this a sham, with impressive but misleading titles and names .This is really a shame that they have tarnished the image of this noble profession .
There are a few who are good , sincere and competent.They have upgraded their qualifications to make sure they are up to date. They have never let product promotions and incentive contests distract their mission as financial advisers. They have the interest of the clients' needs at heart. They are not driven by high commissions. They always recommend the best for the clients and often against their personal interest.They are not product pusher. They are need based adviser. They advise.; September 06, 2007 10:50 PM
Anonymous said...: Dear Mr. Tan, the many insurance agents play a very important role,not social role but commercial role, not for the customers but for the insurance companies. The companies need them to sell the products and not to advise.
Advising is slow , selling is faster. The companies are watching their bottom lines. They are not charitable outfits but profit oriented companies.
So are the agents, commission oriented and not customers' needs oriented.
Do you think the companies care how the agents bring in the business?
The way things are going i doubt the companies care. With promotions
and gifts offered rampantly to entice the customers, there is only one objective, i.e. to improve the bottom line.
AIA recently woke up to the fact and after the experience of critical year fiasco.They now see the need to change.They are making sure all their agents undergo intensive need based selling under the Financial Health Check up scheme. Let's hope the other companies will follow suit.; September 06, 2007 11:18 PM
Khiat Han Hwee Adrian said...: Thank you for your timely posting.

I was initially worried that your blog became a place where reputation of the industry get tanished as if all financial advisers are out only to swindle other's money.

I have to agree that there are indeed many advisers who gives improper advice largely because they did not do a proper financial analysis before recommendation.

I believe things will improve in the next few years.; September 06, 2007 11:59 PM
Anonymous said...: I agree with Mr. Khiat, to put things in right perspective, not all but a few advisers really care for their clients. Many of them give poor recommendation because they don't conduct need analysis.Many of the top
producers, mdrt and cot, are product sellers. I have known many of them and they hardly know about financial planning. Many do not even know the products application.
They just sell.Surprisingly many trust them and buy from them.They must have some kind of magic to make the clients buy.
It is really sad that the industry has many of these people whose heart is never for the clients but themselves.; September 07, 2007 12:36 AM
Anonymous said...: I agree with Mr Tan Kin Lian that we should be fair in our views. Good insurance agents still exist despite the majority of insurance agents who are driven by profits.

I do hope insurance companies do provide some sort to training to educate their agents.; September 07, 2007 1:02 PM
hongjun said...: I recently sat down with a prudential adviser on one of the roadshows. The adviser actually tried to "force" me to buy their product telling me I have 2+2 weeks allowance to cancel the product should I change my mind. Within this 4 weeks, I can give a call to her and then my policy will be terminated and my deposit to be returned without any condition. However, I see this as an aggressive tactic since many are actually too "lazy" to cancel a policy and end up paying for the policy even if they are having second thoughts on it.

I see this as unethical.

Regards
Loh Hon Chun; September 07, 2007 8:23 PM
Anonymous said...: Dear All,

I agree with many readers saying many insurance agents are unethical and they do not have the interest of their clients at heart and the sales target imposed by pressure from their company. My "silly" sister, over bought insurance from my cousin's wife and could not afford the premium after a few years.
On the other, consumers like us have to be careful with our money too (not to say see father and son, brothers or sisters fight over money in court); September 07, 2007 9:52 PM
Anonymous said...: This is real and we are not out to
insult the insurance agents.The problem with this vocation is the entry barrier is very low, 4 "O" levels and passing some multi choice exams is all they need to become an insurance agent.The authority must wake up to realise that you can't have people with such low qualifications and knowledge to advise on personal finance. It is a joke. If you look at syllabus you will know those stuffs they study is not enough to equip them to advise.
My opinion is they need a minimum qualification of diploma in risk management and finance to order to understand what they are doing.
Right now every insurance agent is selling and that is what they are doing. Imagine they don't know your need how can they know the product is suitable for you.
What can they do for you at the roadshow with so little time to spend with you.They just make a quick one to get you to sign on the dotted lines. In this way they can sell more and as you must have heard it is number game.This reminds me of those blind needy people selling tissue papers at hawker centres. They work on same principle, on numbers. If for every 10 people they approach one buys ,and for hundreds they approach there is good sale.For agents they can hit MDRT target. They can't waste time. They must quickly move to next one. At the roadshows you can see them chasing and harassing passerbys.
If you are serious about your personal finance NEVER buy and discuss it at roadshow.The problem is customers are enticed into buying because of gifts. The insurance agents know the weakness of customers. Don't be greedy.You regret. This is what selling is about, make a quick kill.; September 08, 2007 3:22 PM
Unknown said...: Thats why it is important to hav gd advise & sufficient time to compare plans as it is a long-term payment commitment...; September 08, 2007 9:46 PM
Anonymous said...: Insurance agents who think they have not lost for their clients thier capital better think again.By recommending capital guaranteed investment or safe insurance plans does not mean they are free from blame and will not be sued. In the advisory business it is not about gain or loss only but also about whether you have given appropriate advise on a reasonable basis. Reasonable basis encompasses a range of advices and recommendations which justify the cleints' financial circumstances and goals.
Clients who think their agents fail
in this respect can sue them especially discovery is found many years after the purchase of the policy or investment.Damages are already done.Client can rely on the fact finding forms and other documents for the basis to sue their insurance agents.This is a very important document which tells whether the insurance agent had done thier job properly or not and you can use it against the agents should thing turn awry in the future. So study the document carefully to see if insurance agent had advised on the reasnable basis. If not sure it is always good to consult a qualified and competent third party to look at the insurance portfolio because whether your financial future can be realised is contained in those documents.You are not obliged to your insurance agent. He is hired and paid to advise on your personal finance. The earlier you do the better.; September 09, 2007 6:37 PM
Anonymous said...: I was once asked by an Income agent to invest my special account in their growth policy but was lucky to learn from another adviser that investing in the product would not benefit me in terms of return because the return of the product is not guaranteed and CPF's return is guaranteed. Also there is a lock in and if i don't hold to maturity I would lose. The agent was trying to convince and sell me some stupid double idenmity insurance feature of the growth product which is actually a personal accident insurance. Lucky I was, otherwise I will be locked in for a long time just to get what the CPF will give me without the risk and lock in for the stupid insurance.
This is an example of unethical selling.; September 10, 2007 5:55 PM
Thomas Phua's Blog said...: You can see a few types of people in this blog contributing.

1.Insurance opportunist
2.Insurance agent hater
3.People needing info
4.People who are having fair views

The worst views comes from first 2; September 12, 2007 4:22 PM
Anonymous said...: The truth always hurts. I am not surprised that you think the first 2 are the "worse" because whatever they say don't please your ears. it is jarring.
But if you look at them more positively you can pick more facts and truth than those whose self interests they are promoting.Of course if you are looking for truth and facts.
But if you are an insurance agent it is hurting to see your trade being run down and stampeded.
Again the truth hurts, whether you like it or not. The truth will set you free.; September 13, 2007 6:50 PM