Breaking News
Home / Health care Administration / Life insurance reform law – We demand the motivation card of the policy!
Life insurance reform law - We demand the motivation card of the policy!

Life insurance reform law – We demand the motivation card of the policy!

Life insurance reform law – We demand the motivation card of the policy!

At the end of May 2014, the Life Insurance Reform Act was launched with political pressure. The long version sounds promising: “drafting a law to secure stable and fair benefits for life insured”. In fact, this also hides one of the historically greatest upheavals in the intermediary landscape.On page 18 of the draft government, the reader learns: “The cost transparency of insurance products is increased. In particular, insurance intermediaries must disclose the amount of their commission to the policyholder. “On page 24 in the” Special Section “of the Government Bill follows:” By the obligation of the insurance intermediary to inform the policyholder in its entirety the amount of the commission due to him for the conclusion of the relevant contract , the transparency for the policyholder is increased. The self-interest of the insurance intermediary in concluding the contract is disclosed. We did the political logic test and looked at the consequences of the regulation. The question comes up involuntarily,

What exactly is driving politics?

stability of life and pension insurance?

The life insurance needs for the actually necessary corrections no commission card! Certainly the nonsensical regulation for distributing politically caused valuation reserves to a few customers at the expense of the majority of the insured must be urgently corrected. The consequences of the low-interest phase initiated for bank rescue must also be mitigated. Certainly a cost reduction is inevitable. But the identification of commissions does not make any meaningful service here!

consumer protection?

In this point, the search for the logic of politics becomes enormously difficult. Obviously, consumers want to be protected from intermediaries and, on the other hand, they are to be financed from consumer taxation without consumer protection measures that at least impose the same qualification measures as the intermediaries. Who can protect the consumer without in-depth understanding of the matter? In fact, the advance of trust required by, for example, consumer centers, demands even higher qualification requirements, since consumers are lacking any suspicion that may be trapped by an intermediary. This is followed seamlessly by the question: Why are free insurance brokers calculated by the amendment compared to  Exclusion brokers, online portals or direct sales disadvantaged?  After all, as early as 1985, the Federal Court of Justice gave brokers to the custody of its customers in a landmark judgment (file reference: IVa ZR 190/83), thus giving them full liability for the results of the consultancy. I actually thought that this extensive responsibility of the brokers for their work, which incidentally also reflected in 2008 in the insurance contract law, is the best consumer protection. Consumers do not enjoy this protection in the same way when served by exclusive agents or online portals. So why weaken a profession by distorting discrimination, in which consumers have the better cards in case of damage?

… to put a stop to rogues?

This suggests at least this reasoning on page 24 of the government bill: “The self-interest of the insurance intermediary in the conclusion of the contract is disclosed.” However, it is not a new realization that just the “villains” are not particularly interested in laws, but just characterized by it to ignore or bypass them. Such profound knowledge should prevail in Berlin as well.

Why hurry with such a deep intervention in competitiveness?

The pretext “consumer protection” is known to be an all-purpose weapon – even for meaningless or even counterproductive regulation. In order to make the motivation of an intermediary transparent for the recommendation of a contract, one must come up with something more intelligent than the intended regulation. The commission is known to be only part of the motivation that an intermediary can have to speak out for a particular product. The government already suggests a suggestion for circumvention: “Other commissions due to the insurance intermediary in the course of the contract, such as maintenance fees and the like, should not be disclosed for reasons of practicability.” Since when can consumer protection fail due to practicability?

Brokers are placed in the moral offside

Since no fair overall information about the remuneration for the conclusion of a contract takes place, which has the same meaningfulness across all distribution channels, the consumer is now suggested that the amount of the commission is in inverse proportion to the quality of advice. In this view, the broker, who often refers to the commission as the only remuneration, look quite old.

Currently everything in the green area?

We never said that, quite the contrary. Especially not because this industry has never been conspicuous by an active role in transparency. By the way, other sectors are not. Also in terms of remuneration was undoubtedly beaten over the strings. But does the need for correction justify headless agitation? I think that policy lacks the overview, because it not only decimates jobs, but also aggravates a major problem for the future: inadequate private provision and simultaneous weakening of legal systems. To be on the safe side, I briefly summarize our positions here:

  • Correction needs in the industry? Yes!
  • Cost reduction? Yes, it can not be done without it!
  • Cost card? Yes, we already have it!
  • Identification of systemic commission differences that have no impact on the customer? Why? Explain that to us.
  • Qualification for intermediaries? Why, surely! But also for consumer protection!

Dear politicians, this topic has nothing to do with the necessary measures to stabilize life insurance.

Commissions do not provide all the benefits that can motivate an intermediary to recommend a particular product. If there is no bright idea yet on how to present the interest in the financial statements in a comprehensive and consistent manner across all distribution channels, then it seems to me appropriate to consider such a profound influence on the competitiveness of customer-oriented agents. The ancient saying “Think first, then act” always has its justification. Or is it possible that brokers are the pawn sacrifices that are accepted with approval. Because nothing is better for distracting from your own political mistakes than an envious discussion.

Distraction from what? Maybe from real problems and from the fact that it was politics which has weakened life insurance through bank bailouts in recent years. And where is the technical and factual substantiation that the commission card will actually change anything in the interests of the consumer? Or the factual connection with the declared intention to stabilize life insurance? Above all, the costs have to go down – and they are not congruent with the commissions to be reported. As a result, the down-to-earth free agents are also affected, from whom you certainly need not protect a consumer. I am therefore in favor of more political transparency and a complete statement of motivation for politicians. that the commission card will actually change anything in the consumer’s interest?Or the factual connection with the declared intention to stabilize life insurance? Above all, the costs have to go down – and they are not congruent with the commissions to be reported. As a result, the down-to-earth free agents are also affected, from whom you certainly need not protect a consumer. I am therefore in favor of more political transparency and a complete statement of motivation for politicians. that the commission card will actually change anything in the consumer’s interest? Or the factual connection with the declared intention to stabilize life insurance? Above all, the costs have to go down – and they are not congruent with the commissions to be reported. As a result, the down-to-earth free agents are also affected, from whom you certainly need not protect a consumer.

 I am therefore in favor of more political transparency and a complete statement of motivation for politicians. which you certainly do not need to protect a consumer. I am therefore in favor of more political transparency and a complete statement of motivation for politicians. which you certainly do not need to protect a consumer. I am therefore in favor of more political transparency and a complete statement of motivation for politicians.

About Naqvi

Check Also

Weight Loss Tracker App

Weight Loss Tracker App For PC ( Windows & Mac ) Free Download

Weight Loss Tracker App For PC ( Windows & Mac ) Free Download Welcome to …

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: