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8 thoughts on “Life Insurance: Bad Persistency – Mother of all problems of industry

  1. It is a problem across industry, which suggests that the new business acquisition processes needs to revisited. A more holistic system should be in place.
    We have a solution that can be leveraged in targeting products to right prospects & customers.

  2. My first observation from the article is I have not hnderstood ‘right person’.I feelvthst the right insurance product should be sold to the person.
    We need to deep dive and ask who sells insurance? Intermediary/Agent?
    Next, who wanys to become an Agent? Why he wants tob become an Agent? Whether does he work as part time or full time as agent? Wheyher he is getting attracted with different levels of commissions for different products? Whether he is under tremendous pressure from the insurance company to do the business and to keep his agency alive? Whether the company is using him like a tissue paper-use and throw? Whether company encourages and supports the agent for soliciting business?
    If we found answers to all above questions, I am confident that the chances of misselling will reduce thereby automatically persistency will improve.
    Focus should be educate agents about both soft skills and technical ( product training) skills.
    I would like to hear more views from you.

    1. Completely agree. Training is the most critical aspect in insurance selling. And targets should be reasonable. Especially during the initial period. What I meant by right person was, UL Product should be sold only to a person who understands the risks associated with market linking. Any other person would be wrong person. But I agree, it boils down to proper training.

  3. @suresh, in cut-throat competition between insurance companies and the low margins, I guess, it is difficult to even convince the sales head to stop mis-selling. In the capitalistic world, answers to all your questions are very obvious: companies work for their profit so as the agents. I agree with you in an idealistic world, but that may not offer any practical solution.

    1. Mr SK,
      I agree that companies work for profits but not at the cost of distrust of their policyholders. Companies believe in long lasting relationship with the policyholder. Similarly a genuine distributor sells need based product and openly discloses to the client the commission which will be received to him.
      Mr SK, I believe in finding solution to every problem. If we are convinced that miss selling is not a good practice then we can convey the same message to sales community as well.Also ‘ idealistic’ and ‘ realistic’ worlds as mentioned by you are created by our mindset.

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