Insurers, Takaful Operators Must Increase Agent Professionalism -- LIAM
KUALA LUMPUR, Nov 13 (Bernama) -- Insurers and takaful operators (ITOs) must strengthen their agency management systems, particularly in recruitment, training, coaching and supervision, to ensure agents deliver consistent and quality services to customers, said the Life Insurance Association of Malaysia (LIAM).
Chief executive officer Mark O'Dell said agent selection for managerial positions should be based on a proper assessment process, as strong sales performance does not necessarily translate into effective leadership.
"There should be pre-appointment assessment, transition support, and the ITO needs to provide a standard agent training curriculum, which includes systems for agent recruitment, selection, training, coaching and activity management.
"It is the ITO's responsibility to conduct due diligence to ensure that agents are moving for the right reasons, as well as to monitor and take steps to control policy replacements and assess their potential impact on policyholders," he said before the launch of the Chartered Agency Builder (CAB) designation and the Industry Best Practices here today.
O'Dell also said ITOs should move away from product-based sales incentives. Instead, rewards should align with agents' adherence to professional standards and customer-focused practices.
Insurers should also review their incentive structures to ensure that rewards encourage agents to prioritise professional conduct and customers' interests rather than sales of specific products.
The Asian Institute of Insurance, in partnership with LIAM and the Malaysian Takaful Association, officially launched the CAB designation and the Industry Best Practices for developing professional insurance and family takaful agents.
The best practices are anchored on four pillars: a Charter for Professional Agent, industry best practices, continuing education and certification, and industry promotion, to raise professionalism and strengthen consumer confidence in the life insurance and takaful industry.
-- BERNAMA