29 Jul 2011, 9.46PM
I applaud MAS for seeing the importance of protecting the investors against the rogue financial product salesmen but why life insurance products are not included? In fact, the bulk of mis-selling and abuse and misrepresentation can be found in the sale of seemingly harmless life products.
Is MAS aware that life insurance agents treat or consider their customers as savvy and require only product advice so that they can get away pushing high commission products?
Are roadsweepers, kitchen helpers, factory workers, professors and doctors considered savvy or knowledgeable in life insurance that they need only product information to buy without advice?
MAS, if you care about fair dealing outcome or that the insurance companies are complying with fair dealing outcome guidelines please check them by giving them surprised audits.
I know the companies are circumventing the guidelines because I am an adviser with a local insurer and observed the daily breaches of the law. The company is pushing their salesmen to push high commission products without fact find and wihtout putting the customers' need first.Product pushing assumes that customers are savvy and therefore the insurance salesmen need not conduct need analysis and comply with reasonable basis of the their recommendation. The truth is the salesmen want to push high commission products. Does a road sweeper know about life insurance? And yet he is considered savvy and requiring product information only as if he has conducted his own need analysis. Can he?
Please, MAS, impose the Customer Knowledge Assessment requirement on life insurance too to stop the conflict of interest and mis-selling. You don't have to believe me, conduct your own investigation.