The following comments apply to unethical agents, and do not apply to agents who act honestly.
If an insurance agent tells the truth about a life insurance policy, it is likely that the customer will not buy it, because the yield on the long term savings is rather bad. The agent has to resort to half or full lies to get the customer to buy the product. An example, is that the policy can give a yield of 9% because the funds are invested in good emerging markets. The chance of achieving this type of yield, net of expenses, is really quite remote.
It will be inexcusable for an experienced agent to make this type of misrepresentation. The way out is to be an agency leader and to make these statements to the energetic recruits about the "benefits" of the life insurance policy. The new agent does not know that these statements are untrue, and goes about with enthusiasm to spread the word to family and friends.
It is easier to make a false statement when one does not even know that it is false!
If an insurance agent tells the truth about a life insurance policy, it is likely that the customer will not buy it, because the yield on the long term savings is rather bad. The agent has to resort to half or full lies to get the customer to buy the product. An example, is that the policy can give a yield of 9% because the funds are invested in good emerging markets. The chance of achieving this type of yield, net of expenses, is really quite remote.
It will be inexcusable for an experienced agent to make this type of misrepresentation. The way out is to be an agency leader and to make these statements to the energetic recruits about the "benefits" of the life insurance policy. The new agent does not know that these statements are untrue, and goes about with enthusiasm to spread the word to family and friends.
It is easier to make a false statement when one does not even know that it is false!
1 comment:
Does MAS know that this is how insurance salesmen are doing? Does MAS also know that they are trained to 'sell' this way? Did MAS know the agents are trained to take short cuts and NEVER disclose when not asked? This is only the tip of the iceberg. if MAS is serious about cleaning up the industry of the rots please do it right from the top down.
Is MAS satisfied that the top down fair dealing guidlelines is working well? Has MAS sacked any CEO or fined them for breaching the guidelines? The truth is it is a big load of shit in all insurance companies. The culture is me me and the company and fair dealing to customers can take a back seat.Let's think how to rob the customers in the shortest time..
Please investigate, MAS. Send a spy or mole into the insurance companies to see first hand what the CEO and the senior managers are doing.You will see for yourself all the directives, guidelines and notices are in the waste paper baskets.
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