Do you support a fee-based approach for insurance agents?

[phantom_opera]

MAS finally doing the right thing, trying to switch insurance agents to fee-based approach ... the commission is way too high, as high as 120-160% of annual premium

What do u think?

[Vincegoh]

MAS finally doing the right thing, trying to switch insurance agents to fee-based approach ... the commission is way too high, as high as 120-160% of annual premium

What do u think?

my feel is that the garmen needs to increase the qualification entry levels for insurance agents. considering that the products these agents are selling can be relatively complex, some of the insurance agents are really out of their depth and cannot deliver an accurate picture to end users. end of day, chances of misrepresentation (even if there's no intention for mis selling) can be relatively high and contributes to the misgivings many have of insurance agents.

if they deliver good service and provides expertise, then i wont deny them high comm (regardless of whether it is fee based).

note: i am not in the insurance line!

[phantom_opera]

my feel is that the garmen needs to increase the qualification entry levels for insurance agents. considering that the products these agents are selling can be relatively complex, some of the insurance agents are really out of their depth and cannot deliver an accurate picture to end users. end of day, chances of misrepresentation (even if there's no intention for mis selling) can be relatively high and contributes to the misgivings many have of insurance agents.

if they deliver good service and provides expertise, then i wont deny them high comm (regardless of whether it is fee based).

note: i am not in the insurance line!

IMO, a combo of fee-based and additional commission that is not so much front-loaded but incorporate assessment from clients after 3y is more appropriate

Of course, this is a total turn off for ppl who want to just quickly make his/her million dollar by recommending ILPs only

[Vincegoh]

IMO, a combo of fee-based and additional commission that is not so much front-loaded but incorporate assessment from clients after 3y is more appropriate

Of course, this is a total turn off for ppl who want to just quickly make his/her million dollar by recommending ILPs only

cannot be after 3yrs lah. otherwise in the first 3 yrs how to make a living? make it too onerous for them to receive their compensation and we will just encourage bad behaviour (all the more they will chase the easy $$ rather than offering the best advice).

i think it's about providing transparency in terms of the comms so that clients understand how the agent is earning from the products they are selling and whether it is indeed suitable for them.

problem is right now alot of them just push products that offer the highest comms and clients are none the wiser!

KYC is something that all financial advisors are meant to do as the first step.. but honestly speaking how many of the advisors take it seriously and plan your policies based on the info gleaned from such an exercise. i will say only very very few of them.. tat's why it can be quite disappointing at times dealing with agents.

good thing is my agents now know better than to flog ILPs to me after a couple of initial tries resulted in them getting stumped by some of the questions i shot back at them.

[howgozit]

I actually don't think it is complex at all.... aunties and uncles with basic language skills can do the job. The commissions are way way too high.

my feel is that the garmen needs to increase the qualification entry levels for insurance agents. considering that the products these agents are selling can be relatively complex, some of the insurance agents are really out of their depth and cannot deliver an accurate picture to end users. end of day, chances of misrepresentation (even if there's no intention for mis selling) can be relatively high and contributes to the misgivings many have of insurance agents.

if they deliver good service and provides expertise, then i wont deny them high comm (regardless of whether it is fee based).

note: i am not in the insurance line!

[Chillyred888]

i smell something sourish....

[amk]

I fully support fee based.
in fact the whole industry is like a huge scandal. selling unnecessary policies is the name of the game.
with fee based, no doubt hundreds if not thousands of agents will quit. they should. they should not have been advising on financial instrument (what an insurance policy is inherently) in the 1st place.
this trade should be transformed into a real profession.

[howgozit]

Hmmm... probably from consuming a lot of vinegar...

better get somebody to take a look at it... can be serious

i smell something sourish....

[phantom_opera]

I fully support fee based.
in fact the whole industry is like a huge scandal. selling unnecessary policies is the name of the game.
with fee based, no doubt hundreds if not thousands of agents will quit. they should. they should not have been advising on financial instrument (what an insurance policy is inherently) in the 1st place.
this trade should be transformed into a real profession.

I am surprised you use the word "scandal" ... finally Ravi Menon is doing something right

[Vincegoh]

I actually don't think it is complex at all.... aunties and uncles with basic language skills can do the job. The commissions are way way too high.

ok, i guess me not so well versed in some of the products they sell. i.e. how they generate returns and its cash back policy plus also some of the finer details for multi-coverage/investment policies.

[howgozit]

My sincerest apology... I was just joking... but failed... it probably came out too harsh and condescending...

No offence intended... my bad

ok, i guess me not so well versed in some of the products they sell. i.e. how they generate returns and its cash back policy plus also some of the finer details for multi-coverage/investment policies.

[Vincegoh]

My sincerest apology... I was just joking... but failed... it probably came out too harsh and condescending...

No offence intended... my bad

aiyoh towkay.. no sweat lar.

[Eastboy]

MAS finally doing the right thing, trying to switch insurance agents to fee-based approach ... the commission is way too high, as high as 120-160% of annual premium

What do u think?

It's not confirmed yet right?

[Chillyred888]

Those ppl that come in here to cpcb will Not Ever pay the few k (fee for planning)even if it ever came thru. Reason Being they missed the boat for cheaper better planning.mind u, with Fee based u must pay an advisor even if u do not intend to buy any product being advised.

They will b the same kind of ppl that forever be Underinsured.

[Yellow Horse]

So meaning if we meet agents to do planning I must pay them?? So how to get best deal if I need to pay every agent??
I don't think all agents earn alot. I know people in insurance who earn very little, and it's so hard to make a sale at times.
Its normal to mark up alot when u sell something. Look at how garmen mark up the land price, taxes. MLM is even worse. Eh no, ERP worst, build a gantry to suck money. Don't even need to talk sales.

MAS very free ah?

[teddybear]

fee-based? Oh no no! but I have no use for fee-based consultation (because I just don't trust them ). People who need consultation please pay, no need consultation don't need to pay better....

Agree that commission is way too high. They just need to ensure the insurance companies are transparent with their commissions and any costs and charges and we can decide for ourselves which insurance is better.

I think the best fee-based is that the insurance company pay the agent fees, no fee from us.

MAS finally doing the right thing, trying to switch insurance agents to fee-based approach ... the commission is way too high, as high as 120-160% of annual premium

What do u think?

[Yellow Horse]

In business it's normal to mark up 200% right?
Eg if I make a cake at $1 but I sell u $3 pack swee swee for u.

Of cos we welcome the idea of paying less.. But I think the fee based idea is just not making sense.

Garmen want Singaporeans to buy insurance, let insurance take care of our medical and retirement while garmen continue to suck us dry! Cos cpf and medisave is no longer enough to meet the high prices! The true fact is our people have difficulties paying necessities like house, food, education, parents etc, so they rather buy car or big house if they have spare cash. Insurance will be rank last.

U see? If we think hard enuff we can always guess their motive.. Very sly...