Here are two articles from Bloomberg News. They illustrated the tactic employed by insurers in U.S, as taught by Mckinsey.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=auNrNZBzb1NE
http://www.bloomberg.com/apps/news?pid=20601170&refer=home&sid=aIOpZROwhvNI
One paragraph said: "State Farm changed its approach to settling claims after
McKinsey & Co., a New York-based consulting firm, told the insurer it could increase profits by paying out less in auto accident claims and home disasters, according to evidence presented in civil court cases."
Another paragraph said: " When a policyholder files a claim, first make a low offer,
McKinsey advised Allstate. If a client accepts the low amount, Allstate should treat the person with good hands, McKinsey said. If the customer protests or hires a lawyer, Allstate should fight back."
I hope local insurers won't adopt the same approach for more profit. Please take good care of yourself.
Dennis
REPLY
I will explore giving the proposed Financial Services Consumer Association (FISCA) a role to help members get fair compensation for their insurance claims. This will make it more valuable for members to join FISCA. This service will be available for existing members only, in respect of a claim that arises after they have joined FISCA.
8 comments:
If insurance company don't want to backup their insurance product, they should be charged for fraud.
Dear Mr.Tan
With some related grounded experiences against certain local insurers, I believe they are behaving the same. This illustrates the poor corporate social responsibilty of these business organisations.
And corporate lawyers too are equally guilty working for these arrogant Insurers. I do not know if it is just certain of their staffs working and behaving this way, or it is poor corporate culture.
It reminds me of your truthful article on poor business ethics.
I am prepared to write to support you in any effort to expose such such bad buiness ethics and to keep consumers more beware.
Is there a code / creed of conduct for Insurers ? Or are they same like all big FIs using detailed / complicated legal procedures to victimise consumers.
Mr. Tan the association must have 2 departments to help the consumers.
One to to give advice and the other to review consumers' existing policies for fraud and mis-selling.
Dear Mr Tan,
I have attented your latest speech and I like the idea you have to put across for the FISCA. I wouldn't mind paying for an annual subscription if I can get regular updates and research reports for new financial products/services offered by FIs or insurance companies. This would greatly benefit all consumers as a whole. You are right to say that government and banks should stay out of this and I hope that you can head this organisation as it might be difficult to find people who would not be tempted to give bias recommndations to the consumers.
RZ
Absolutely beneficial to consumers.
Consumers can get unbiased advice.
Best of all consumers can seek second opinion for review of their existing insurance policies to check for mis-selling, inappropriate recommendation and conflict of interest.This service is important because many consumers are not sure if they have been sold the right product. It is better to discover earlier than many years down the road.
Insurance agents cannot anyhow sell you or cheat you anymore. They can be hauled up for breaches of the law. Misconduct is serious and can lead to revocation of their license. In this way consumers will be confident that they get responsible and competent advice. Consumers should join the association and be united so that no insurance agent, RM or FIs cannot bully and cheat you.
Can you get 3.5% rate of return for your whole life or endowment policy?
No way!!! you can wait long long..
How do they sell their WL and endowment products then? Like the structured products they are also structured with a lot of rubbish.
Nowadays they will include,a cheapskate personal accident,125% coverage for first 15 years,limited payment term, and conversion to annuity.Do they need to heap such rubbish if the protection and return is good?
Even they decorate with this rubbish the MOST IMPORTANT is still the basic protection and return and that is what you buy.
But greedy and unscrupulous agents sell you on those rubbish to distract you from the REAL issue.
Be careful and don't fall for that.
TODAY ALL WLs AND ENDOWMENT and worse anticipated endowment disguised as cashbacks are very poor products for protection and as saving plan and very expensive per thousand of coverage. They are guaranteed loss.
Latest News!!!!!
ntuc agents are prowling the streets looking for victims to buy their revosave .They bait you with promotion vouchers. Are they selling voouchers or they are looking after your needs? Vouchers, of course.They think you are greedy.They think you can be bribed. But think twice. Revosave is a long committment and even you commit for the whole term you get miserable 1%+ return(guaranteed loss). What if you don't you will suffer heavy loss even you fall short of a few years to the term.. Think thrice, those cashbacks are YOUR money returned to you. It is the stupidiest thing I have ever heard. Putting under your bed makes more sense. You can see and touch them everyday and use them whenever you want, why wait for 2 years and only half of your own money to be returned to you and then wait end of every year.Stupid, right? This is a suck product. I wonder why MAS allowed it. Consumers cannot benefit. No wonder they say you can NEVER retire if you rely on insurance agents. They retire first and leave you in the lurch.
Think about what i said.
concerned
Consumers must join this association for protection from insurance agents and insurance companies.
This is a place where you can have your policies checked for mis-selling
and misrepresentation.
Insurance agents cannot anyhow sell you because FISCA will help you sue the agents and the insurance companies..
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