Navigating Singapore's vast insurance landscape can be daunting, so choosing the right insurance agent to guide you through the complex landscape of policies and coverage can make all the difference in ensuring your financial security. This comprehensive article will explore the key considerations to help identify the best insurance agent and demonstrate how MoneyFitt’s unbiased insurance agent matchmaking platform can determine the right expert to suit your needs.
The first step in your search for the best insurance agent is to understand the different types of agents available in the Singaporean market. You must determine which kind of agent best meets your demands at that particular moment as they can provide you with differing results. There are two primary categories: captive and independent agents.
Note: You may also find insurance agents referring to themselves as financial advisors or financial consultants nowadays as they can provide a wider range of services to their clients other than just advising on and selling insurance products.
Captive agents are those who exclusively represent a single insurance company, such as AIA, Prudential, Great Eastern and Manulife, among others. These agents are bound to the products and services their affiliated insurer offers; the range of options they can present to you is within that company. However, this can also be an advantage for you as some insurance companies will keep some policies exclusively for clients under their captive agents! Note that some agents may work for independently owned agencies representing an insurance company, while others may work directly for the exact same insurance company, though there should be no difference in practice for you, the insured.
In contrast, independent agents are not tied to one specific insurance provider. They have the freedom to offer a broader selection of products from multiple insurers, allowing them to tailor their recommendations to your specific needs. They are able to provide a wider range of choices that can be invaluable in finding the right insurance solution for you.
However, one thing to note is that insurance companies will keep some policies exclusive and only available via their captive agents and hence unavailable from independent agents, while other insurers ONLY work with tied agents. Additionally, despite having a wide range of policies to offer as an independent agent, they may still have key performance indicators (mainly sales targets) to hit from some of the different insurance companies they represent. Some independent agents actively promote the products of one particular insurer over the others that they represent because they are incentivised to do so (possibly because of a stake held by the insurer in the agency.) But it all comes down to the agents themselves and the solutions they come up with to give you the protection and investment features that you are looking for, which is why your choice of agent is so important!
Whether captive or independent agents, insurance companies in Singapore often run campaigns to incentivise agents to sell specific insurance products. These campaigns may offer extra commissions or overrides (special incentive commissions), bonus payments, recognition or awards, or trips and other incentives to agents who successfully promote and sell targeted policies. The goal is to encourage agents to focus on specific products and drive sales.
This may lead to suggestions of conflict of interest so it's worth noting that the Singapore insurance industry is regulated by the Monetary Authority of Singapore (MAS), the country’s central bank, which is tasked with ensuring that insurance companies and agents operate fairly and in the best interests of policyholders.
First, ask them for their RNF Reference Number and then check it in the MAS Register of Representatives to see if they are currently licensed and in good standing. The next step is to assess an agent’s qualifications, expertise and professionalism in the field.
Characteristics to help find the best insurance agent in Singapore:
A good insurance agent should hold relevant extra professional certifications apart from their MAS licence, such as the Chartered Financial Consultant (ChFC) or Certified Financial Planner (CFP) designations. There are other professional certifications, such as Associate Estate Planning Practitioner (AEPP) Certification Programme and Diploma in Personal Financial Planning, that support services that an insurance agent may offer. These qualifications demonstrate a commitment to ongoing education and learning, continuous upskilling and a deeper understanding of the industry.
Additionally, insurance agents will add their accolades to their social media profiles so clients can quickly see what they have achieved in their careers. A good insurance agent will also tell you about their certifications and achievements during the first meeting session; otherwise, you can ask them!
Consider the insurance agent's years of experience in the insurance industry but do not necessarily assume that more years of experience will mean a better agent for you. Remember to keep in mind other key factors such as their enthusiasm, eagerness to learn, and whether they specialise in what you need.
No specific number of years counts as “experienced”, but as a rule of thumb, a professional can only enrol in the ChFC and CFP courses after 3 working years.
Additionally, insurance agents are eligible for a Million Dollar Round Table (MDRT) certification yearly, which is from a global and independent association of leading life insurance and financial services professionals. They are assessed based on hitting a certain number of commissions, premium levels, and income for that year. This certification consists of MDRT Members, MDRT Court of the Table (COT), and MDRT Top of the Table (TOT). The performance criteria to achieve these certifications increase exponentially.
How do you know if your insurance agent has one of these achievements? Usually, they will write it in their social media profile bio or mention it along with their other accolades. However, that does not mean you should only want to work with agents with such an award as they might not be the right agent for you and your current set of needs. It just means they have been very successful at making big money from sales to their customers!
Some agents choose to specialise in a certain area of financial planning due to their passion or strong suit about a certain area. Identify agents who specialise in the specific types of insurance or products you're interested in. Examples of these policies include but are not limited to hospital policies, life insurance, term plans, investment-linked policies and critical and terminal illness policies. Their expertise in these areas can be invaluable in ensuring you receive the most appropriate advice for your needs.
MoneyFitt’s matchmaking platform allows you to filter and find the optimal insurance agent for you. Our AI-driven onboarding and matchmaking deliver you matches that specialise in your areas of financial need, plus additional preferences you may request, such as professional certifications, language, personal attributes, and more, to help find the ideal insurance agent for you.
Let MoneyFitt’s expertise deliver you a seamless and transparent experience; Our tech assists users by suggesting key questions to ask, summarising discussions with various advisors, and bridging the knowledge gaps between you and the insurance agent.
Below, we explain how to judge a prospective agent’s performance once you have reached out to an agent of interest.
Effective communication and a client-centric approach are key qualities of the best insurance agent for you.
Here are some characteristics that you can look out for:
A trustworthy agent will be upfront about their limitations, strengths, and the pros and cons of their recommended insurance products. There should not be any beating around the bush, and they should never shy away from answering your questions or providing clear explanations, including about commissions they may receive from the plans they are proposing to you.
A good agent will take the time to understand your unique financial situation, goals, and risk tolerance before proposing any solutions. They should tailor their recommendations to your specific needs rather than pushing a one-size-fits-all approach.
Look for an insurance agent who is readily available to address your concerns and queries, whether through timely email responses, phone calls, or in-person meetings. Their level of responsiveness can be a telling indicator of the level of service you can expect.
In addition to your own assessment, consider seeking recommendations from trusted sources, such as friends or family. Online reviews can also provide valuable insights into an agent's reputation and customer satisfaction.
Reach out to your social network and ask for recommendations of insurance agents they have worked with and trust. Personal referrals can give you a firsthand perspective on the agent's professionalism and the quality of their service.
Take the time to scour sources like Google, social media, or industry-specific platforms to find reviews and ratings of insurance companies and agents in Singapore. However, as with anything you see online, do take anything you find there with a pinch of salt. Pay attention to the agent's responsiveness to customer feedback and the overall sentiment expressed by their clients. When using MoneyFitt to find an insurance agent, examine the details and quality of testimonials on an agent’s profile.
The relationship between you and your insurance agent is crucial, as you'll be entrusting them with a key part of your financial portfolio. Consider the following factors when assessing the potential fit:
Do you feel comfortable and at ease when interacting with the agent? Can you envision a long-term working relationship built on mutual trust and understanding? These intangible factors can significantly impact the success of your partnership.
A good agent should be committed to maintaining an open line of communication, regularly reviewing your insurance needs, and providing ongoing support as your life circumstances evolve. In some ways, agents “earn” their commission from an insurance policy - not simply from selling you the policy but in the support they give you when you are claiming. Does this agent look like they will go out of their way to support you when you need them most? Will they be “in your corner” when it comes to getting you paid by the insurance company?
Once you've identified a promising insurance agent, the final step is to navigate the onboarding process effectively.
This involves the following considerations:
Discuss and document the scope of the agent's responsibilities, the frequency of reviews, and any specific service-level agreements to ensure a clear understanding of the partnership.
Your agent should thoroughly explain the details of any insurance policies you're considering, including coverage limits, exclusions, and claims procedures. Feel free to ask for clarification until you fully comprehend the terms.
Maintain open communication with your insurance agent and regularly review your policies and coverage needs. A good agent should proactively inform you of any changes or updates that may impact your insurance plan.
Finding the best insurance agent for you is critical in safeguarding your financial future. By understanding the landscape, assessing the agent's qualifications, evaluating their communication and approach, seeking referrals, and nurturing a strong agent-client relationship, you can ensure that your insurance needs are met with the utmost care and expertise.
Remember, your insurance agent should be a trusted partner, dedicated to protecting your interests and guiding you through the complexities of the insurance world. With the right agent by your side, you can navigate the insurance landscape with confidence and peace of mind, empowering you to get the protection you need and achieve your financial goals.
MoneyFitt serves as a transformational way to find an insurance agent in Singapore. MoneyFitt does not charge users for connecting with advisers, nor does it take any commission from action taken through experts, ensuring a transparent and hassle-free experience. It's the perfect platform for individuals seeking expert guidance without the risk of a hard sell.
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