How do Advisors make money?

01 Feb, 2023 | by Suresh Nayak

While Beshak charges fees from Advisors, it's unclear how the Advisors make money if they are not allowed to charge customers? The only other Avenue is the insurers in which case bias can creep in? Applies to all categories of insurance.

Opinion

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Basics of Insurance

2 Answer

Post

01 Feb, 2023

Rohit Dhingra

4.5

MBA | 5 years experience

Dear Suresh,

An advisor earns a commission from the insurer. While your concern is genuine in terms of been bias, to negate the thing out an advisor does not recommend a plan. TruMatch Report for Term Plan is a auto generated report it will suggest one a plan. An advisor will not have view on the same. Similarly the report for Health Insurance has suggested plans by the central team and not the advisor. Once one receives the options one discusses those with the advisor and then take a call. Emphasis is here is upto client to take a call rather than the advisor pushing a product. Any one looking for a plan get also get the quote reviewed by Team Beshak as well.

An advisor would suggest a plan only when one is not happy with the options shared in the report. The reason could be some past bad experience or premium out of budget or issue with network hospitals etc.

I hope I have been able to answer your query.

Regards

Rohit Dhingra

2 Comments

01 Feb, 2023

Suresh Nayak

Is there an option for the customer to pay so as to make sure the advisor is working in my interest?

01 Feb, 2023

Rohit Dhingra

4.5

MBA | 5 years experience

Dear Suresh,

I think somewhere there is this mindset that is created via multiple mediums that a advisor does not work in the interest of a client. Question to answer is Why will an advisor not work in interest of his/her client?

If an advisor does not work in interest of his client sooner or later it will be loss of the advisor. If a bad/wrong advisory is offered the good will of the advisor too will be tarnished. People who are on Beshak's platform do this full time and are no part-timers who are there to make quick money and then say good bye.

To be precise on the question asked by you.. currently there is no regulation in Insurance to charge a fee for advisory. It is upto an individual insurance advisor.

Regards

Rohit Dhingra

Reply |

13 Feb, 2023

Team Beshak

We breathe insurance :)

Hello Suresh,

While Rohit has answered your question already, here is a quick clarification all product recommendations are personalized and generated from our tech stack which is backed by independent research. No human from the Beshak community including advisors has any role in the personalized recommendations that are shared with you. This ensures there is no bias in the product recommendations.

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