You can sum up the main problem with traditional insurance in one word. Commission. Commission is the amount an insurance agent is paid to get you to buy a product. And it follows that if an agent is working for commission payments, he or she is not necessarily working for you.

How does this affect me?

Think of it this way. If you were being paid to sell Adidas, but paid nothing to sell Nike – which are you more likely to recommend? You see the problem. Also, if you are being paid to sell Adidas, then the price of an Adidas product will have to be higher. To take into account your commission on the sale.

It’s the same when you are buying insurance. Commission has the ability to –

  1. Compromise the insurance advice you are being given.
  2. Increase the price you are being asked to pay.

Is this a fact, or just our opinion?

It is a fact. Google ‘insurance problems Singapore’, or here is a quick summary of what is at stake.
“Back in 2005 / 2006, in the days before MAS got heavy handed with insurance agents, they ran a mystery shopper survey. The results? 28 percent of the mystery shoppers were recommended suitable products. 30 per cent were recommended unsuitable products... That’s what happens when you leave commissions based insurance industry to its own devices.” Ryan Ong, themiddleground.org

What can I do about it?

When it comes to insurance, ignorance can be anything from frustrating to very expensive. Knowledge is always power. Before you buy, ask yourself these questions -

  1. Am I being told that insurance is too complicated for me to understand?
  2. Do I pay the same if I buy direct or through an agent?
  3. Does this company make it easy for me to buy or renew my policy online?
  4. If I need to claim, will I speak to the same person throughout the process?

Pay less for more

You could be paying less for a better service. If you are buying from an agent, you are not the centre of the relationship. The agent is. The agent can only sell you the products he or she represents. The agent makes more money if you buy things you don’t need.
At Budget Direct Insurance we’ve kicked out all the nonsense that makes insurance miserable and expensive for the customer – no agents’ commission, no incentive trips for the most insurance sold, no golf games and fancy dinners. Just the insurance you need, quick and easy to buy, at a price that’s affordable and fair.

Now that’s good news.

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Cheap and good. Not possible? Let’s hear it from our customers.

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