Educate the customers

Many insurance products are too complicated. The agent does not spend time to explain the product to the policyholder. They are trained to sell the products to the customer, using emotive reasons.

As a result, many policyholders, including those that are well educated, do not understand the product that they have bought.

This is an unsatisfactory state of affairs. It has been the case for many decades.

I personally share some of the blame for this state of affairs, as I had been involved in running an insurance company for 30 years. At least, I tried to offer simple products at low cost that give better value to the customers. And I did try to give simple explanatory leaflets.

I hope that, in the future, the insurance industry will put more effort in the following:

1. simplify the product
2. educate the customers
3. empower customers to select the product that best suit their needs.
4. reduce the upfront and operating costs, and disclose them to the customers.