Good and bad insurance products

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http://theonlinecitizen.com/2008/09/protecting-the-small-investors/#comment-22959

65)--> question on September 30th, 2008 12.57 am
there is one thing i am very curious about mr tan kin lian. you are the ceo of insurance company for many years and yet now you warn people about bad insurance. it really something special or different. will those people in insurance hate you very much. because it is something like last time you are on same boat with them now you are against them. something like betrayal.\\\\\

REPLY
There are good insurance products and bad insurance products.

A good insurance product offers protection at a fair premium. There is a fair margin to pay the sales person, cover the expenses of the insurance company and give a fair profit margin.

There are bad insurance products that over-charge the customer and pay excessive commission to the sales person and make excessive profit for the insurance company.

I want to encourage insurance companies to sell good products that are fair to customers.

I also want to encourage the banks to sell good financial products. The structured products are bad products because they give poor value to the customers in relation to the risk. The product creators and sales people take away too much in charges, and leave the investors to take big risks (like the minibonds, high notes, etc). These products are like high cost insurance policies, but many times worse.

I hope that more people will come forward and speak about business ethics. Business should not cheat customers to make profits. They should give fair value to customers.

More people should also tell the regulator and the Government - look after the interest of ordinary people, the retirees, uncles and aunties and also the young people. Do not allow these ordinary people to be cheated out of their hard earned savings.