No this is not an article of whether you should buy life insurance from a bank or from an agent…it is just leading to an article on MoneyLife.
Agents tell me ‘we cannot sell a wrong product to the customer, because we have to go to the same guy again and again, but bank managers can sell a wrong product’
Counter by Bank RM: We cannot incentivise a customer the way an agent can, so we lose out.
Agent: We know nothing about the client except what the client tells us, but the bank RM knows all the transactions.
Bank: RBI has lot of restrictions on whether we can see the client’s account.
Bank rm: We work hard and make 10 calls a day…..
Agent: some of us make 20 calls a day. There is nothing called an average agent.
Funnily no one model has worked. SBI for example has used the bank branch model, Max New York Life started with the agents model.
Now insurance companies which had only the agents model are aggressively moving towards bancassurance model and the insurance companies which had the banking model are moving towards the agency model! There does not seem to be the ‘one right model’. Is there mis-selling? Is there rebating? It is a yes to both.
Are both channels doing ‘wrong’ things. Well legally no – but we all know how life works, do we not?
If Gandhiji had a 4th monkey….it would be covering…you know what!! The only protection you have is financial education. The best ploy which can work is to tell the agent or bank relationship manager ‘My son (depending on the age of the customer this can be son, brother, sister, mother -in-law, classmate….) is Sr. Vice-President (Compliance and Legal) Goldman Sachs, Singapore. I will ask him /her and foward your mail to him/her and let that person decide whether it is a good product’. Good enough to put off the thief (only problem is if he does not know he is selling a lemon!).
Or ‘If you sell me a lemon, believe me I have the energy, money, patience to squeeze the lemon in your eye’ ….have fun guys…also read this
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