Awesome news item saying that IRDA is cleaning up. Great. The way the financial services sector is structured, it should not be difficult to do it.
There is only one downside. 38 mutual funds and 16 life insurance companies will close down.
So the media being supported by them will shut down.
No more sponsors, no more advertising. I guess about 5000 jobs in the advertising industry will shut down.
A few bloggers like me will have nothing to write about.
A zillion bank relationship managers will not have any product to sell. Of course the recent fad is ‘realty’ – luckily the VIP of the industry does not want a regulator till he goes away. Literally.
What is amazing is the kind of myth that some people are trying to build:
1. Mis-selling is done by Life Insurance agents: Bullshit. Complete bullshit. : Products are designed for mis-selling. I remember a life insurance plan where you could DRAMATICALLY reduce your second year’s premium…from say Rs. 2 million to Rs. 20,000. CLEARLY a product DESIGNED for mis-selling. Not designed by the agent, let me assure you!!
2. Mis-selling is done ONLY by Life Insurance stake holders: The amount of mis selling, switching, IPO (then rechristened as NFO) – it was a free for all by the big players. Small players copied. Ditto. Ditto. Ditto.
3. Banks: OMG the less said about them the better.
4. Life Insurance business is very profitable / not profitable at all: both are completely wrong.
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