Lower rates of commission

COMMENT POSTED IN MY BLOG

Mr Tan,

Did you try to reduce agents' commission during your tenure with INCOME? If you tried, how effective were you? What were the challenges you faced if you tried to reduce the commissions? Why were you not able to overcome the challenges? What do you think that the present CEO can overcome those challenges?

REPLY:

During my tenure, the selling cost for NTUC Income is about half of the rate payable by other insurance companies. The agent gets lower commission. There is no over-riding commision payable to the agency manager. The advertising expenses are kept low.

Due to the low cost, the life insurance products were offered at lower premium rates, or give a better return to the consumers.

The agent can earn a satisfactory income by generating more sales, as the products are easy to sell.

Many of the current products offered by NTUC Income belong to the "old series" and still give good value, compared to similar products in the market.

I have no comments about the pracitce of the new management.