Direct discount in lieu of commission in premium?
Do you think that insurers should offer direct discount in premium in lieu of agency commission to the proposers approaching them directly for insurance?
Note - Recently, I have met with a person, who is working with Iffco-Tokio told me that they can give such discount to customers.
This way they are starting a very bad practice in the market. Today the condition is that a 2 wheeler owner asks what is the discount offered.
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I am speaking from experience and my own personal views above - I am not an advisor, nor an expert.
I will agree with providing discount for direct business. But not to the percentage as equal to the agency commission.
The reason behind my stand is that, still there are plenty of opportunity in Indian market which is still uncovered. When customer starts approaching directly to the insurance companies, which means that the awareness has got increased.
This discounting can be used for improving awareness and the necessity of insurance among the public and hence discounting can be given for insurance products which are not mandatory. Say for e.g. Motor insurance need not be given discount whereas health insurance can be given discount for walk in customers.
Hope people will agree with me.
The indian consumer has got used to the discount culture, be it from vegetables to name it anything, but the insurance should be kept away from it,the premiums here in india are far less then what they are in other countries, but on that fraud and they think general insurance comparing it with Life insurance, expecting returns of whatever premium they have paid, I agree fully with you all that its really a bad practice to offer discounts.
'When someone shares something of value with you and you benefit from it, you have a moral obligation to share it with others.'
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