Most people wouldn't consider being a general insurance agent because of the immediate monetary reward that one can see up front is too little. A majority of the general insurance agents in Malaysia are in the used car business. These used car dealers see the insurance agency business as just a mere complimentary to their core business. Only a handful had actually developed their insurance agency and expanded it into a non-motor insurance base agency.
Mostly of these insurance agents rarely, call up their customer for subsequence year insurance renewal and there are some who sees this as an overhead cost to their operation. They are much more into their core activity of selling used cars.
In Malaysia, the motor insurance is tarriff rated, this means the commission payout from all insurance companies in Malaysia are of the same rate. No doubt income generated from this fringe service is small in the beginning but once you grow your customers base, you can introduce other classes of insurance that has higher commision rates.
How one can benefits from a pool of car insurance customers?
A customer that has a car, might also had a house that might need fire or burglar insurance. If he is a practising professional like doctor or accountant, a Public Liabilities insurance could be useful. If he is in the enginnering business, a Workmen insurance policy might help in managing some risks in a project. A Marine Cargo insurance is good for those involved in the import, export or freight forwarding business. A Personal Accident insurance is good for those who travel frequently and those who go on family vacation. A term Medical insurance could come in handy for most families to cover hospitalisation costs in times of the unexpected.
I would say the general insurance coverage has too many features and options that most people who have a needs for it don't even know they exists. All they need is some professional explaination and recommendations to help them get their risk covered. This is where a qualify insurance agent comes into the scene. A qualify insurance agent is able to provide the necessary information and type of insurance class that could help cover a person's needs.
Whereas most of the insurance agency on the market are motor based, the non motor based insurance agency which requires a proper knowledge and education in the insurance field is reserved to only a handful of agencies. In Malaysia, the studies of insurance and insurance related courses is conducted by Persatuan Insuran Am Malaysia (PIAM).
Non motor based insurance agency is what most large insurance companies would love to have in their business portfolio nowadays.
A notable changed on the insurance agency scene today is that with the advent of computers and internet has put many older generation insurance agents at a disadvantage. The younger generation see this sector as not attractive because of its initial low monetary returns.
The general insurance agency business, is one little known, great home based business one can start on a part-time basis. It would be an added advantage for those working a day job at the moment because people your surrounding is a good pool of potential customer base you can begins with.
MyEg is one online service you shouldn't ignore. You can get your client's road tax renewed and delivered to your door step just for a small fee. This service can save you precious time and foot work rather than having to do it all by yourself as in the olden days. Do take note though, my advice would be get the road tax delivered to you and whenever possible deliver by hand to your customer to build up your rapport. Road tax renewal at MyEg does not required vehicle's registration card.
Uneducated insurance agents and unregulated practises in the past has resulted in cases of public outcry over claims rejection.
The insurance industry in Malaysia has come a long way, the Bank Negara Malaysia (BNM) has done a lots of regulatory in rising the service standards, quality and practises of insurance company and their agents alike.
What can you do if you think your insurance company has cheated on you?
Here are some tips of what you can do.
1) Talk to your insurance company. If you've attended by a claim executive and it is not helpful enough, ask to speak to a manager. If that doesn't help either, escalate upward, look for the head of Claims department.
2) If your dispute can't be resolved, you can lodge a report with BNM at Insuran Info You may not get the outcome you wanted for your case, but it will changed the governance of insurance company in the future because your stats counts.
Related post: How to be Insurance Agent in Malaysia