on your 2 cents, 1 cent is right, the other 1 cent is wrong, best you check with the customer service and not with the agent.

you should know and inform people of its bad half as well.

http://www.hubbis.com/articles.php?aid=1317808967
Taiwan’s Financial Supervisory Commission (FSC) has warned investors of the risks involved in buying investment-oriented insurance products.

The regulator said the investment-oriented categories include mutual funds, financial bonds, corporate bonds, structured products, and, in particular, overseas structured products.

Before buying investment-oriented insurance products, the FSC said investors should check the insurance dealer’s registration certificate, assess their own investment knowledge and risk tolerance, and read the risk disclosure statement. For overseas structured products, the regulator said investors should pay special attention to the credit risk of foreign issuing institutions, as well as to the FX risk at maturity.


http://www.chinadaily.com.cn/business/2009...ent_8402776.htm
CIRC lifts ban on investment-linked insurance

By Zhang Jiawei (chinadaily.com.cn)
Updated: 2009-07-09 14:34

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The China Insurance Regulatory Commission (CIRC) recently gave the green light to four domestic insurers to open investment-linked insurance accounts, after a half-year suspension triggered by the mass cancellation of investment-linked insurance policies in the second half of 2008, according to a post on CIRC's website on Tuesday.

The four insurers - China Life, CITIC-Prudential, Great Wall Life and Pacific-Antai Life - were approved by the CIRC to open eight new accounts for their investment-linked insurance products.

As most insurers failed to benefit from the rising capital market in the first quarter of this year, they significantly increased their investment in the stock market in the second quarter, especially in May and June, which contributed to lucrative returns in the first half of the year, Beijing Business Today said on Wednesday.

"The CIRC's move to lift the ban on investment-linked insurance accounts means regulators think there're more opportunities on the (stock) market, and insurance funds will continue entering the market," a source with an unnamed brokerage told the newspaper.


Related readings:
China broadens insurers' investment channels
Insurers asked to provide written risk warnings
China Life raises equity investments as market rallies
China's insurance premium income up 10% in Q1



The source said the move by authorities was more of a positive signal pointing to insurers' confidence in the stock market, for the investment-linked insurance market, unlike the fund market, is still small and won't bring in large sums of capital for the stock market.

Wang Xiaogang, an analyst with the Orient Securities, said the CIRC also wanted to expand investment channels for insurers to boost the insurance market.

"The mass cancellation of investment-linked insurance policies was a result of misleading marketing (of the product)," Wang told the newspaper. "The withdrawal risk can be avoided now, for the selling procedures, personnel training and information disclosure are all regulated."

Statistics from Sinolink Securities showed yields from investing in equities under investment-linked insurance accounts have risen with the rebound of the capital market. More than 60 percent of aggressive investment accounts of investment-linked insurance products have outperformed the market in the past year.

In the first five months of this year, the average return on stock accounts reached 5.03 percent, compared with a loss of 45 percent in the second half of last year, according to Sinolink.

China Life, for example, saw a steady rise in its equity assets under its investment-linked insurance account from last December to May this year, and as of the end of May, the equity assets accounted for as high as 74.8 percent of the account's net assets, the newspaper said.

A source from an insurance capital management company predicted a large flow of funds from investment-linked insurance accounts into the stock market in coming months.





This post has been edited by lunchtime: Feb 1 2012, 11:01 AM

we have clear confirmation here then, insurance agents are selling policies to clients for their own interest rather than the clients' interest, which is why almost every agents pushes endowment policies (so called cash bulider, save 6 years, get peanuts money for the rest of your life policies) and those so called investment linked policies without explaining the risk upon the clients.

yes, there is a conflict of interest here, and that conflict isn't about screwing your clients just because he's unaware or uneducated or the fact you see the client as a water fish.

"they deserve a RAW deal." for this statement alone, you are in no position to market insurance as you have no ethics. you deserve to be out of business, same goes with whoever who taught you the nonsenses you been churning out.

let take LYN postings as a sample of the population, you will note that most clients are not happy / angry with their agents / policies shouting fraud / cheated and you will note that most insurance agents are pushing endowment / investment linked policies as savings & retirement programs rather than pushing term policies for protection.

since it is happening here in LYN, i doubt it will be any different in the non internet world as well, given LYN is a sample of the population meaning generally agents push endowment / investment link plans rather than protection policies compounded by the marketing spin of better than FD interest (endowment ala cash builder for those still wet behind the ears) and "this not insurance, this is savings" ala investment linked.

now dreamer, how would you expect an aunty to do research when all the agents she meets recommend her similiar policies aka endowment / investment linked plans rather than other alternatives?

i give you an example, an friend of mine who is massively rich was looking for a protection policy approached agent A, A quoted my friend a 10 years endowment policy, premium was around $150k per annum. That's $1.5m.
He spoke to his wife about this, and his wife asked her friend who is an insurance agent B for advice. Guess what insurance agent B did.

Insurance agent B told them the proposal by A is rubbish and proposed another plan which turns out to be a 8 years endowment with the premium of $150k per year as well fully aware of the fact my friend is looking for a protection policy.

my friend asked for apple and instead was advise orange by agents. Who's to blame? Agents or clients?

like you said,
"Why would an insurance agent EDUCATES its customer to shop for lower cost insurance?? That reduces their income...

There is a conflict of interest here..."

Imagine the commission on that $1.5m premium, should be around $181500 plus bonuses for the 6 years. 95% of the insurance agents in the market have no ethics, no financial background, haven't a clue what insurance is about and couldn't care less about the client so long as the client pays premium on time.

BNM recognised this problem which is why its implementing CPD hours and insist on agents to do RFP, but its implemention is rubbish given how insurance companies are cutting corners.

insurance agents ptuiii!!

what after sales service? My pariah PRUDENTIAL agent been MIA for years now.

This post has been edited by lunchtime: Feb 3 2012, 08:37 PM