Independent financial planner Chong Chin Kian shared about the new framework by Bank Negara Malaysia on the changes that affect the insurance industry.

There are two channels involved in enhancing the Financial Advisers Framework.

The first one are the direct channels which sells commission-free products:

  •  Walk-in – A client walks in, the insurance provides staff to entertain and inform the potential client.
  • Telemarketing – The insurance company will call and find potential clients.
  • Internet Marketing – Using the Internet to reach out to multiple potential customers without having to call or contact each individual potential client. This also enables the customer to buy in or believe your product before they contact you. Some insurance companies claimed, they actually get 80% to 90% of their revenue from their online business.
  • Direct Mail – Sending advertising mails and communication directly to your customer’s home.
  • Outsourcing to a third party – Marketing efforts are given to a third-party to sell insurance policies to clients.

So, in the future, one would definitely be able to buy personal accident insurance or medical insurance from TESCO. This enables the consumers to buy a policy as they need. When they feel that they need more coverage, then they can just go to TESCO and buy insurance. To make your life easier, you can also  get your free quote from this page.

This is advantageous because most people are hesitant when it comes to buying insurance from an agent or even from a financial planner. So, aside from giving wider options for consumers, it is also convenient for consumers. This also promotes healthy competition to the market.

To find details on the the Bancassurance/Bancatakaful Channel, you can go to the Bank Negara website and search for “Insurance Framework.”

Watch the webinar below: Benefit for Consumer, Challenge for Insurance Agent. Bank Negara Life Insurance & Family Takaful Framework
In this webinar you will know:

– Why said insurance agents have face the biggest challenge
– How insurance have been sold to consumer in current system and in concept paper
– Challenges that consumer will face after implementation of the concept paper
– How insurance have been sold to consumer in current system and in concept paper


KCLau
KCLau

Personal finance author and trainer

    1 Response to "Benefits for Consumers, A New Framework By Bank Negara in Diversification of Insurance Products Distribution Channels – 2"

    • Pey Min

      What are your views on Bank Negara’s concept paper on direct distribution channels?

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