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Mis-Selling in Insurance: Is It an Intent Issue or a Knowledge Issue?

💥 Let’s Talk About the Elephant in the Room


Every now and then, a viral tweet or LinkedIn post will blow up with a familiar headline:

❌ “Mis-sold policy”
❌ “Didn’t know waiting periods applied”
❌ “ULIP returns weren’t guaranteed?”

And without skipping a beat, the blame gets dropped at the feet of the agent.


“Insurance agents are just commission-hungry.”“They don’t care what they’re selling.”


But here’s the thing no one wants to say aloud:

👉 Most agents don’t set out to mis-sell.

👉 They just aren’t trained — or supported — to sell right.


So let’s ask the uncomfortable but necessary question:

Is mis-selling in insurance a problem of intent… or a symptom of a broken system?

A professional Indian woman insurance agent with clarity and support.
A professional Indian woman insurance agent with clarity and support.

📊 Let’s Start With What the Data Tells Us


🧮 Complaint Numbers


  • Over 75% of complaints in the life insurance space are related to mis-selling or poor disclosure. (IRDAI Annual Report 2023)


  • In Health Insurance, rejections due to misunderstanding of coverage clauses have surged 2X in the last 5 years. (MoneyControl, 2023)


💬 What Customers Report


  • Only 22% of policyholders fully understand what their policy doesn’t cover. (NCAER Survey, 2021)


  • Over 30% of ULIP buyers believe returns are “guaranteed”—when that’s rarely the case. (Consumer VOICE Study)


So yes — mis-selling is real.


But does that mean the agent knew better and sold anyway?


🧠 Here’s What Happens Behind the Scenes


Let’s look at the day-to-day reality for most agents and sellers in India:


1. Training Is a Check-Box Exercise

Agents are trained once when they join. That’s it.

  • 20 hours of digital training.

  • Pass an online exam.

  • And you’re good to go... forever?


There is no on-demand learning, no new product workshops, and no multilingual explainers for real-world client questions.


Result? They wing it.

2. They’re Expected to Sell What They Don’t Understand


Here’s an actual quote from an agent:

“I’m supposed to pitch a ₹40,000 critical illness rider, but I can’t even explain the 90-day clause properly.”

Why? Because they’re given:


  • Dense PDFs with IRDAI compliance wording

  • No claim examples or pitch visuals

  • No way to check live updates or common objections


Imagine being a schoolteacher without a textbook or blackboard.


That’s how most agents pitch today.



3. The Pressure Cooker: Targets First, Clarity Later


Especially for POSP sellers and agency force, monthly targets rule everything.


  • You’re rewarded for premiums booked, not retention

  • You’re replaced if you miss your quota

  • Your commission is clawed back if the policy lapses


So if you’re unsure about waiting periods or room rent caps, do you pause to double-check?


No. You pitch fast. Because someone else will sell if you don’t.



4. Language Is Still the Biggest Barrier


India is multilingual. Insurance documents are not.


Most agents speak one language. Most policy brochures don’t.


So whether it’s Cyber, Fire, or even Health, they end up:

  • Copy-pasting clauses in English

  • Explaining in local dialects

  • Hoping the client understood (they often don’t)


That’s not selling. That’s surviving. PDF and no visuals.What they “understand” is not always what they “believe they bought.”



🚨 So Who’s Actually Responsible?


Blaming agents is easy. Fixing systems is harder.


Here’s what’s broken:

Problem

Root Cause

Misunderstood benefits

Jargon-filled policy documents

Over-promised returns

Lack of training on product risks

Undisclosed exclusions

No objection handler or comparison tool

Lapsed policies

No support in post-sale handholding

Aggressive selling

One-dimensional targets & incentives

So no, the agent isn’t always the villain. In many cases, they’re just the last mile of a broken chain.


🛠️ What Needs to Change (And Fast)


To fix mis-selling, we must fix how agents are equipped:


✅ Training should be modular and ongoing

✅ Pitch tools should explain products like humans, not underwriters

✅ Scripts and visuals should be in Hindi, Gujarati, Marathi, and more

✅ Daily updates and comparisons should be standard, not premium

✅ Client communication should be own-branded, not platform-controlled


Because when agents understand the product — and how to pitch it right — mis-selling drops.


🟣 How Agent Saathi Is Solving It


We didn’t build Agent Saathi to be another POSP platform.We built it because good agents are struggling in silence.


Inside Agent Saathi Beta, agents get:


📌 Multilingual Sales Scripts

📌 Visual Pitch Slides with Editable Branding

📌 Ready-made Objection Handlers

📌 Product Comparisons in Plain Language

📌 Daily Regulatory + Product Updates

📌 Business Kits for Commercial Lines (like Cyber, Fire, D&O)


And all of this is designed to be simple, snackable, and self-usable—even if you’ve been selling for just 3 months.


💬 Final Thoughts


Mis-selling will never stop until agents are truly supported.And that starts with acknowledging that:


Knowledge gaps are not fraud. Lack of tools is not intent.

If we want agents to sell right, we must give them what they need:

🧠 Clarity🛠️ Tools🗣️ Language📊 Context📱 Daily support

Agent Saathi is here to do just that.

🚀 Ready to Sell Better, Not Just More?

🎯 Join our 7-day free trial.Let your next pitch be your best one yet.




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