Most Malaysians believe that financial advisors and insurance agents are the same. In the eyes of the consumers, they both serve for the same purpose, which is to sell financial products or specifically the insurance coverage. There is a clear difference between these two in which a financial advisor is licensed and certified under official governing bodies such as the Central Bank of Malaysia and the Securities Commission. Whereas, most insurance agents do not have these qualifications and most of them have limited-knowledge and capabilities.
The second significant difference lies in how the money is earned; financial advisors will charge a consultation fee to fit the best interest of the client while insurance agents on the other hand earn commissions based on the products they sell. These have raised a real problem – they tend to sell the highest commissionable products to you rather than the insurance that adds value to the customer.
Who are insurance agents?
Insurance agents are appointed representatives of insurance companies. Also known in the industry as tied agents, they have a responsibility to act in the best interest of the insurance company that they represent. They will advise/sell based on the products that their insurance company provides.
Below are some of the Pros and Cons buying insurance from insurance agents:
In Malaysia, it is ubiquitous for insurance agents to act as financial planners; when the truth is, most of them only sell insurance for their own benefit. Unfortunately, many people buy into this façade, not realizing that the intention behind pushing these pseudo-investment plans is the high commission rates behind them, rather than the buyers’ well-being. Here, we highlight how the industry is predominantly agent-based and how you can protect yourself against ambiguous investment schemes that do not add a lot of value to your portfolio, let alone appropriate insurance coverage.
How about the financial advisor? Another question that is frequently asked that needs a precise answer.
Financial advisors are also considered as brokers since they carry products from multiple insurance companies and advice on investment funds from most asset management firms for customers’ benefit. They provide a platform for customers to choose from numerous insurance companies that fit the customers’ needs.
Below are the examples of the Pros and Cons buying insurance from a financial advisor:
Insurance coverage can now be purchased directly through online from 2015 onwards. The Central Bank of Malaysia has recently issued guidelines on the provision of E-policies to increase consumer and insurance providers’ accessibility, visibility and connectivity for both customers and insurance companies- since most Malaysian citizens do not have primary coverage. These efforts aim to ensure that the inexperienced consumers find the type of insurance policy and cover themselves accordingly through secure, transparent and educational online channels. These indirectly give a broader opportunity to customers to choose coverage that they need without having to go through a middle person or representative.
Get to Know About PolicyStreet!
PolicyStreet is an online insurance platform (E-Policies) where you can compare and buy directly from renowned insurers! What makes PolicyStreet more impressive is we genuinely care about our customers’ well being rather than the commission as PolicyStreet is approved by the Central Bank of Malaysia.
Customers are sure to be able to find a wide array of car insurance with unbiased choices and pricing that suits your needs! PolicyStreet aims to democratize insurance by making insurance Simple, Easy and Affordable. We break down complex insurance policies and provide consumers with their rights to be adequately insured with deserving financial wellness at all stages of life.
Here are the steps on how you can purchase car insurance via PolicyStreet:
- Visit www.policystreet.com/motor/
- Key in the relevant details and generate instant quotes
- Choose the type of insurance that you are purchasing.
- Add on extra coverages that you prefer.
- Please give us your details and Check out!
Compare from more than 10 renowned insurers online in less than 60 seconds and get the best price for your car insurance today! Definitely, guaranteed the lowest price for your car insurance and you get to try out our super cool platform. 😀
You wouldn’t want to miss these awesome offers on our website because we truly care for you. Prefer whatsapp instead? Say hello to +601 11684 2590, we love chatting with you 🙂