Was speaking to a senior person in the life insurance business. Interesting times indeed.

Sales are down, and you think ulips are not selling? You gotta be wrong.

This company has appointed a big National Distributor to sell their products. Obviously they are selling wrong. Clients signatures are forged, signatures are ‘photoshopped’ on the form, …and all kind of ‘frauds’ are done quite blatantly.

The head (owner) of the distribution company knows this. He does not seem to be worried.

The Senior Management of the life insurance company says…’hey this is bad, BUT WE CAN LIVE WITH THAT’…after all if they put in 100 forms, ONLY 7-10 forms are FORGED. Make no mistake, EVERYBODY IN THE SYSTEM ….knows that it is ‘ok’ to accept such forms.

I am not talking about small fly by night companies. I am talking of a huge, huge, name in the BFSI space.

Well when sales people run companies – all others are tight lipped, and actually help the whole process to happen. Why do we pretend that the Board of the Life Insurance companies do not know this? Why do we pretend that the Regulator does not know this? Simply because it is convenient. We need to find a ‘bakra’ who can be blamed. Who is the bakra? the last link – the 12th class passed agent. Poor guy! Other than the % age of commission that he will get, and what %age has to be passed back to almost everybody in the system, he knows NOTHING. He is a sucker being sucked into an abyss.

Why this eagerness to help the ‘agent’? Simply because there are sales targets. How can sales targets be met? By paying higher commissions (that of course is a different topic).

Amazing that on the one side you go to the regulator and he says ‘the agent is just like the principal’ as far as the client is concerned. However when the ‘agent’ does all this mischief he is not even punished ….or is it? No clue.

Amazing happenings. Is there a solution? No.

The amazing end user thinks he knows everything. The sales guys are happy. The regulator will act if somebody tells them in the proper forum or format. Or from the correct level and at the correct pace and heat. When the client has a problem he goes to the media. Some of them do act….read  on…



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