You would think it’s easy to sell a compulsory service called Motor Insurance. With so many actuaries and marketing experts employed, it’s a sure win, right?
Result: In the whole of 2017 insurers manage to lose about RM400 million. That’s more than RM1 million a day. One company lost 25% of their business along the way.
Yet, insurers fail to build effective platforms capable to vary prices, product features and coverage on a regular basis. Changes happens once a year, too late for their agents to capitalise on consumer preference.
Interestingly, to stay relevant, single or double principal agents now have the added responsibility to hold clients’ hands to compare even more product choices across multiple insurance companies.
The next change will be swift and we will find motor premiums for some insurers much higher than competitors and higher than pre detariff days. Can you still sell?