in the latest survey commissioned by the life insurance association of singapore, the key findings revealed:
a. 72% are satisfied with the insurance industry as a whole
b. 74% believe their financial adviser acts in the best interest of the customer
c. 80% still needed advice on the different insurance products before making a decision
d. 77% are aware the adviser's recommendation comes from the policy's premiums
e. 59% know that the adviser's commission is higher in the 1st year and lower in subsequent years and that
renumeration changes depending on the product
f. 58% said that the renumeration policy has no impact on which product they buy and
g. 9% said that the current payment structure is unfair and that more transparency is needed.
this survey was conducted in december 2011, way before the monetary authority of singapore announced the
FAIR (financial advisory industry review) which will undertake a comprehensive look at the life insurance
industry.
my comments:
the lia survey has chalked up very positive feedback on the life insurance industry and financial advisers with a total
of 800 people being polled.
even though these findings are positive, i support the announcement by the monetary authority of singapore, the composition of
the review panel for the FAIR, headed by MAS’ Assistant Managing Director for Capital Markets, Mr Lee Chuan Teck.
it is also my hope that everyone will benefit from the proposed recommendations of the 5 key thrusts of FAIR:
(i) raise the competence of financial advisory (FA) representatives;
(ii) raise the quality of FA firms;
(iii) make FA a dedicated service;
(iv) lower distribution costs; and
(v) promote a culture of fair dealing.
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