Which form of distribution channel would give you the best advice? Through the Agency model, the Bancassurance model or the IFA model? We will discuss more about that later.

A lady have wrote in to The Straits Times Forum on the 25th July 2011 sharing her experience of getting insurance advice from 3 different banks (Banks should not act like insurance agents). She and her husband visited the banks with the impression that banks are independent and would not push only their own companies’ products. But they met representatives from each bank that focused on only one of the insurers’ policies.

There are 3 main distribution channels in Singapore:

• Through Agency – All products from 1 insurer distributed through their own agents. A small number of products may be distributed through banks or IFAs.
• Bancassurace – Products from a few insurance companies distributed through the banks’ relationship managers/consultants
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