And the story of misselling continues…..

Attended a free LIC agent training yesterday. Though these trainings are marketed as free, these are exclusively organised to sell paid trainings offered by the firms conducting them. If you are an agent attending such trainings, there is every possibility that you will end up buying paid trainings sold in these free seminars. You can observe almost all of Robert Cialdini’s Influence strategies being used against agents sitting in the audience in these trainings.

The training starts with an anchor who is also a successful agent sharing his experience as an agent and how his life changed when he came across a training  few years back. He then introduces the trainer by showering great words of praise over him and increasing his stature in the minds of audience with his every sentence. He asks agents attending this trainer’s seminar for the first time to raise their hand (this is to check how many new prospects they have got to sell their paid training). He applauds their decision of attending this training because it can potentially be the turning point in their career as Insurance agents.

Now the anchor asks agents who had already attended the paid training to come over the stage and share their experience of the training and how  training helped them in their business. Some 10 – 12 agents come on the stage and share their experiences. They are all praise for the trainer and his training.  Many of them say that they are choosing to attend the training once again because it helps them get back to their top selling form.

The trainer is then welcomed on the stage with round of applause, new agents joining the applause seeing others doing it. The trainer now takes control of the proceedings. These trainers are very good speakers and can grab the attention of their audience from the word go. For next one and half hour the trainer entertains the audience with his oratory skills. He talks about the nobility of the profession of insurance selling , he narrates his own story of how he started his agency and climbed the ladder of success in Insurance selling. He talks about the respect this profession has earned him and what a  great life he is living because of this profession.  He talks about MDRT, COT, TOT agents and the huge earning potential offered by the profession of Insurance selling.

The audience starts getting excited about their own prospects in Insurance selling now and starts taking trainer seriously. You can observe nodding heads increasing with every passing minute in the audience.

The trainer then moves to the talks of how more business can be earned. He discusses ideas of prospecting, insurance pitching and selling. He narrates few stories of how he succeeded in big insurance sells using these ideas. Trainer makes audience understand how ideas sell and not the product in insurance selling. He gives examples of agents who used his ideas successfully and are doing great business now. He also claims that he will give audience an extremely powerful idea at the end of the training which can bring them massive business ( this is to hold agents till the very end of the session).

A neutral observer can observe how the trainer is slowly getting into selling mode of his paid training.

Trainer now begins to emphasize the importance of attending trainings which can provide such useful ideas. He talks of how much investment he has done in himself by attending different trainings. He asks whether audience liked the ideas he provided and whether they would use these ideas to increase their business.  Audience nod their heads in agreement.

Trainer then starts his sales pitch which goes something like this. “If ideas in a free training are so useful for your business, just imagine what you would get in a paid training. We are organising two days training at so and so hotel on so and so date. The training fees we charge for this training in Mumbai is  Rs. 7000 but we are exclusively offering this training in Rs. 4000 for our agent friends in Nagpur. I assure you that these two days will be the turning point of your agency.  I will tell you how to earn more than a Lac Rupees in a month. How many present here want to earn a Lac Rupees per month?” Poor agents raise their hands. “Successful people take quick decisions and to become successful you have to learn to take quick decisions. Take the decision of attending this training and I assure you that your business will be 10 times more than what it is today after this training”

After this sales pitch trainer then asks agents interested in attending his great training to raise their hand. Few hands go up who are then asked to come up on stage and share why they want to do this training. Agents come on stage and  justify their decision of choosing to attend the training. At times trainer even manipulate them on stage to get them to speak what he wants them to say. In rare cases some agent gets emotional on stage because he took decision of attending the training in-spite of having no money to pay for fees. This emotional agent says that he wants to be a successful insurance agent and earn lot of money and he will arrange money to pay for the training  from somewhere because it is an investment  and not an expense(look whose words he is using).  Trainer praises this agent and proclaim that he will be a successful agent one day because he has got right attitude. These words of encouragement leave this agent in tears. Looking this, other agents on stage also try to speak as well as they can; justifying their decision to attend this paid training. Trainer then requests these agents to fill the form and submit fees to his staff.

Couple of smart agents now try to escape training hall. Seeing them trainer says “Please wait for few more minutes for I am going to give you an idea at the end of the seminar which can massively increase your business.”  Agents like me who are also thinking of escaping, decides to wait to hear this last idea.

Trainer gets back to his closing work.  “How many people are there who want to attend training but deciding against it because of their financial problems?” Few hands go up. ” All of you can meet me after the training. We will find some way out. We can even arrange for credit card swapping at the venue. I genuinely don’t want any of you to miss this training. It took me 21 long years to learn how to do this business. I do not want my agent friends to take so long for success in this profession. Take decision today and book your seats. You have two more days to arrange for the fees. All you need is will, everything gets arranged where there is a will. We are offering discount to those who book their seats today.  Many agents come directly to the venue and attend the training but they will have to pay Rs. 4500 instead of Rs. 4000.  Book your seats by giving 500, 100 Rs. or whatever you have in your wallet right now and avail this discount. Please fill the forms provided to you and give it to our staff along with  booking amount. Please do this quickly. We have the best idea of the evening yet to give you. I  want you all to take something valuable home from this training.”

The whole audience now turns into a herd under the influence of successful manipulation of the trainer. You would see some of the agents paying complete fees of the training and trainer praising such quick decision takers and making others applaud for them. You would even see few agents who completed filling their forms, paid their advance and now joining trainer’s staff to help other agents fill the forms and collecting the advance.

Such a massive push selling. Untrained brains would almost always fall pray to this mass selling. Agents who are smart enough not to fall pray to this selling exercise, find it difficult to keep their chin high when almost everybody around them is joining the herd.

The elated trainer now rushes through his much hyped last idea (one more idea of  manipulation to make sell). Trainer reassures that all people who opted for training will have a life changing experience (this last talk is for those who have still not decided to go for the training)

The training is then concluded with national anthem (what a hypocrisy). people start leaving training hall now but if you stay for some more time, you will observe many agents surrounding the trainer telling him how impressed they are with him and his training style and how some of them have opted to go for training again in-spite of attending it before. Trainer reassures them that his every training is different and more interesting than the previous.

This is how an agent who achieved his success through manipulation, misselling and through relationships build for the sole motive of selling more policies, successfully sells his training (which is his new and more sophisticated business) to more agents. Now he will train more agents in his tactics of manipulation, misselling and the story of misselling continues…….

Why most LIC agents don’t sell term insurance

Few months back I attended a two days LIC agent training of a successful LIC agent.On the first day, trainer made us realise the necessity of adequate life insurance cover. His words were so powerful that many of us had tears in our eyes. He narrated many of his real life experiences from his long illustrious career as an Insurance agent. I was really moved by all this and decided during the training that I will not leave any of my close friends under-insured.

At the end of the first day, trainer gave us a challenge to sell at least one policy before coming back to the training next day. At the start of training next day he asked those of us who had succeeded in his challenge to share their experiences in-front of the class. I had sold one 50 L term insurance to one of my friends who was blessed with a beautiful baby girl few months back. I narrated how I sold this insurance using emotional selling techniques tought to us the day before in the training. When I finished my narration, the trainer gave his words of wisdom which I found extremely disappointing and hypocritical. Here are his exact words.

“Instead of giving him 50 L term insurance, you could have given him 15 L endowment policy for long term so that this person should not feel that he paid premium for 3-4 years and did not get anything. Yesterday I received a mail which says that most of the term insurance policies of all insurance companies are in lapsation. So don’t try to sell term insurance. If the person demands it himself then we do not have any other option but to give him what he wants. But instead of convincing him for term insurance, we can always give him (Table No.) 133. Even if he is ready for 10L insurance its OK but don’t convince him for term insurance yourself.”

This is the problem with LIC agents. LIC has no culture of encouraging term insurance selling. Almost all trainers and big agents do big talks of necessity of adequate risk cover but none of them encourage agents to sell term insurance. I have even seen one big trainer proclaiming in-front of packed hall of 1200 agents at the end of his training that he did not discuss term insurance because he does not believe in it.

Since not selling term insurance is a common behaviour among LIC agents, there is this social proof that this is the way things are done and most agents go with the flow.

Sitting in my Oriental branch office….

Sitting in my Oriental branch office since last one hour waiting for my proposal to be processed.
These people are soooooo slow, lazy and dumb. Nobody takes additional responsibility, nobody takes even an obvious deviation from their SOP using common sense.
They appear to have all the time in the world to do job at hand. They do not show any respect for other people’s time.
Nobody seems to be motivated or happy There is office politics and gossiping.
Half of them are yawning….

Wanted to add few more observations but now I have started feeling sleepy myself…..

Rebating and Passback of commission

Rebating or passback of commission by insurance agents is a norm rather than an exception.
Here is how I lost one prospect over sms.

Prospect: “LIC has declared 40% bonus for 1st year to agents. I will be really thankful 4 your extended cooperation.”
Me: ” Dear Sir, if you are talking about rebate that insurance agents deal in, then you will have to find some other agent as I do not deal in rebate.”

(This person didn’t pick up my phone ever after I put this sms to him. I had done all the hard work of making him understand the necessity and importance of term insurance and followed up on him for 2 months.)

Who manages HDFCLIFE ULIP funds Sir?

“Who manages HDFCLIFE ULIP funds Sir?”
SM: “Prashant Jain”
“Prashant Jain?”
SM: “Yes Prashant Jain”

Wrong info. A long back IRDA has banned the practice of outsourcing the fund management to sister companies (applicable to HDFC, LIC, IPru, Reliance, Tata……). So fund management is done in house.