You can change the benefit and remain the agent. Definitely won't get to change agent unless your agent don't mind losing the commission

As long as you know what you're doing =)

Hi

Here is a summary for you to refer to


Attached thumbnail(s)

The premium is low because upfront you have to fork out the deductible.

With the premium you save every year, if you get sick often, you might be coughing out more than you save in the long run for medical card with deductible.

Monday, 17 October 2016
AIA all geared up to adopt Life Framework

Life insurer has been focusing on enchancing professionalism

KUALA LUMPUR: AIA Bhd, one of the top three life insurers in the country, is all geared up to adopt the Life Insurance and Family Takaful Framework (Life Framework) when it goes into full swing in 2019.

The framework, which was issued via concept paper in November 2015 by Bank Negara, contains reform initiatives aimed at improving the efficiency and effectiveness of distribution channels and promoting greater product innovation. It will also give life insurers greater flexibility in managing their expenses and remunerations to distributors, which are highly regulated at present.

This would be done through the implementation of the Balanced Score Card system or BSC starting from 2018.

The larger objective of the framework is to liberalise the insurance market in a manner that would ultimately benefit consumers. A phased approach to its implementation would be from 2016 to 2019.

“We see the BSC as an added enhancement to the existing tools AIA has in place to develop a highly-professionalised force. For several years now, our Agency strategy has focused on enhancing the professionalism of our sales force and driving higher productivity through the recruitment of quality full time Life Planners and increasing our number of active agents,” CEO Anusha Thavarajah told StarBiz.

The BSC serves to apportion a certain component of distributors’ commission to quality-based metrics such as quality of advice and level of service. This would benefit customers as they would get better service and tailored advice from their distributors.

Companies would at the same time benefit from improved persistency, while distributors who are part-timers would be encouraged to become full time. Over time, the focus of quality is expected to help increase insurance penetration in the country.

AIA has also leveraged the Million Dollar Round Table (MDRT) to stress the importance of ethical standards alongside productivity. In 2015, AIA grew its base of MDRT members by 45% to 179 from 118 in 2014.

“This focus on benchmarking our sales force against world class standards, and the other measures taken to boost the professionalism of our agency force, have ensured that we are well prepared to adopt the framework, she said.

The company currently has 13,500 agents or what it term as life planners.

For the first half of its financial year ended May 31, AIA’s active new agents increased by 30%, while active takaful producing agents and active agent productivity rose by 79% and 27% respectively.

Value of new business for the period surged 30% year-on-year (y-o-y) to US$90mil and annualised new premiums chalked up a growth of 31% y-o-y to US$159mil.

On the framework’s requirement for insurers to facilitate the buying of insurance online, Anusha noted that multi-distribution is not something that is new to AIA. Moreover, she said the diversification of distribution channels and the move to online platform allows the company to leverage its leadership position in distribution technology.

In 2013, AIA launched an iPad-based point-of-sale solution that allows its agents to complete the sale in one visit thereby providing a better customer experience.

In line with this, AIA is working on to introduce more direct channels starting with a more interactive and mobile-responsive website as well as customer portal, she added.

“We launched our revamped website in January which is mobile-responsive, easy to navigate and easy to understand. This will serve as the platform for the introduction of online sales in January 2017, when we will start by offering a term plan, and eventually critical illness, health and medical plans via our website. This helps us to connect with the younger generation and consumers who are savvy, providing an additional channel for them to seek solutions independently,

“While we intend to go online as part of the framework, our life planners will remain the cornerstone of our distribution strategy. We are working towards the integration of both online and offline experiences, which means that we will be directing some of the online traffic to our agents offline so they can advise customers on the purchase of more sophisticated products,” she said

In the first quarter of next year, Anusha said AIA would be launching an initiative which would allow customers to connect with the company through the platform of their choice. Customers would be able to conduct transactions which includes– making changes on their policy information, payment method, change of credit card details etc through various platforms. These include a self-serve customer portal and its new Customer Express App.

Apart from this, she said social media would be another platform to service the younger generation’s needs in view of its popularity as a preferred medium of engagement. AIA’s Facebook currently has a fan base of over 230,000 and the company intends to trains its agents to utilise social media to help with prospecting and closing sales.

http://www.thestar.com.my/business/busines...life-framework/

They will bank in the money to you within 2 weeks after you cancel a policy

Just walk into a branch and apply for a cancellation

Why want to cancel in the first place?

Main part is giving proper advise. Not just selling because I want to hit target

It's a service oriented industry, online will not fully replace it 100%

Generally Insurance agent will developed into Financial Planners where they will charge just like how lawyers do.

You want advise ? pay upfront for it.

Otherwise it will be run by the mill now
- Hey I can't hit target this month, please support this plan for me.
- This plan very good 1, 10% guaranteed return. 60,000 per year for 5 years.

Well if that's the way it is then I guess that's your rice bowl for that month.

I'm quite surprised at ppl suddenly become so concern on how insurance agent make their commission.

Yes

Which is why it's offered as term insurance

Agents do offer that as well. At least anything happen agent can still do the death claim.

The question should he
Term insurance and investment link insurance are different type of policy

Term insurance is where you only pay the cost of insurance plus commission to the insurance company and in return they provide you the coverage. No investment is involved

Whereas for investment link plan it is much flexible and you can add in riders such as medical and critical illness and etc riders

The cost nor all involves cost of insurance, commission and investment which is why investment link are charged higher.

Take it as term insurance is rental whereas investment link is buying a house and owning a policy. Because term insurance has no cash value, if you forgot to pay it then it'll lapse and you will have to reinstate and re declare your health and you might not be able to reinstate it if you are no longer healthy

Yeah we encourage our clients to stay and be healthy while be rewarded for doing so. It will help to bring down cost of insurance for those who are obese or living in unhealthy lifestyle.

You may call up AIA and look for them. Otherwise if you have any other specific question can ask me

Haha good one on the PPAP joke.

Yeah it's time for those who rely solely on the Government to get a private insurance coverage for themselves.

I don't think it's compulsory but it's optional. But I'm not sure what difference does this make in the Government Hospital. Does paying in full equal faster medical attention than non-full paying patients ??

Agreed on this but this will be no different from ppl opting for half private / half gov hospital. It's just providing optional services for ppl who desperately need to get the medical attention first and they're willing to pay for it.

But the reason ppl opt for government hospital can be a few such as
1. Insufficient funds
2. No insurance
3. More professional treatment (Not sure about this)
4. More facilities compared to private hospitals.
5. Lower income group of people

If that's the case, having atleast some minimal insurance would help to subsidize for partial payment/full payment for an average Malaysian who want to opt for Government hospital if their limit can't pay for a private hospital fee.

My guess is that it basically to allow more hospital to have such option so that willing patients who are able to pay for the specialist fees can get their medical attention as soon as possible without delay (vs waiting for the FOC services).

Some situations could be a matter of life and death.

I wonder how much more will government specialist earn from this compared to private specialist

You're holding a standalone policy or investment link?