Asia: Trust is the key for insurers

The insurance industry should focus on the effectiveness of its advice rather than just distribution reach, according to AIA's Group Chief Executive & President, Mr Mark Tucker, in Singapore yesterday, emphasising the need for insurers to gain and maintain trust.

Making a summit keynote speech at the opening of Asia Insurance Review’s 25th Anniversary Summit, he said that insurers should not be complacent in discharging their responsibilities to consumers. Instead, they need to uphold the trust of consumers and also restore the faith of regulators in order to reaffirm the benefits which insurance brings to society.
He added agents and financial advisors are the “unsung heroes” of the life industry, and their role will not be usurped, but rather enhanced by technology.
“The evolution of agents, yes; revolution, no,” he said.
“They remain a key touch point, the element of human trust is irreplaceable…but they must know they are advocates of financial literacy and security, not just a company representative out to sell.”
Talking about the chain of trust within the insurance eco-system, he said the trust between regulators and the industry needs to be “restored and repaired” in the wake of the 2008-09 global financial crisis. Reiterating that the industry does not pose a systemic risk, he said the regulatory pendulum has swung too far the other way which could impinge on economic growth.
“Restrictive capital regimes in Europe and North America if followed here will restrain growth in Asia. I must congratulate the regimes in Singapore and China, and their approach towards regulation which takes into consideration local factors should be emulated in Asia.”
Mr Tucker added: “Both regulators and insurers have a common responsibility to preserve the economic health of our societies, so trust is a necessity. Mistrust will lead to higher costs for all involved…so we need to work together to bring the pendulum back closer to the centre.”
Source: eDaily