SOME of the most senior and well-established insurance agents were left reeling by the sweeping changes proposed by the regulator to the life insurance industry last night.
This is because these established agents, who are at the managerial and director levels, derive a substantial part of their income from the commission-based structure currently in place. A senior insurance manager, who declined to be named, said: “There are serious financial implications. I am not sure if I will be losing my job soon.”
Insurance bosses were also worried about what the changes would mean for their ability to retain talent at the senior levels.
Mr Khoo Kah Siang, general manager of Great Eastern Life, said: “It is important that we have an industry that is able to attract people. The question is, what is the best structure? “Perhaps there could be some tweaks to the tiered structure, and working together with the regulators, maybe we can help to come up with a structure that is workable both for the industry and the consumer.”
Their concerns come as the Monetary Authority of Singapore (MAS) yesterday said that it is looking to review how the insurance industry pays its 13,000 agents.
MAS managing director Ravi Menon, who spoke last night at the Life Insurance Association 50th Anniversary dinner, said MAS was looking to review the multi-tiered distribution structure.
Read more: BT invest
