The insurance agent is the least trusted link in the sales chain among both financially literate and non-literate consumers, an industry study in India revealed.
According to research by the Associated Chambers of Commerce of India (Assocham), 72% of consumers ages 18-60 without extensive knowledge about insurance and financial matters said that their insurance agent/salesperson is the least trustworthy source of information when it comes to selling insurance products. In distant second place is the insurer itself, with 29%.
Misrepresentation of benefits is the most important area of concern, with 65% of financially literate consumers between ages 25 to 40 worried that their agent may not relay the insurance policy’s benefits correctly. Meanwhile, 43% of non-literate consumers echoed the sentiment.
The study concluded that since the insurance agent is the face of the company and the industry as a whole, so it is very important that these ambassadors are chosen carefully.
“There is a need for simplification of processes and procedures of insurers to take away the awe and fear of the common man on different products,” Assocham secretary-general DS Rawat told The Hindu Business Line
. “Demystification of insurance concepts is a necessary requirement for people to take to this in a large way, particularly against the backdrop of low financial literacy.”
He also suggested that the industry must make insurance more inclusive, highlighting the fact that the market is cluttered with many complex policies out of reach of the average consumer’s comprehension.
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