‘What is wrong with...?’: Insurance advisor cites rise in misselling as agents chase commissions, neglect customer service

Nikhil Jha, an insurance advisor, has raised concerns about widespread mis-selling in the insurance sector, driven by the lure of attractive commissions for agents. In a post on X (formerly Twitter), Jha highlighted how the industry’s aggressive commission structure is drawing in individuals with little to no knowledge of insurance. 

“What is the problem with the insurance industry? Commissions are highly attractive so people with zero knowledge of insurance are selling insurance policies!” Jha wrote. According to him, this trend has led to a deeper issue — agents who are ill-equipped to guide customers properly. 

“But what is the net result? Agents do not know which product is suitable for which customer. Agents are nowhere to be seen when claims come in. Agents do not know how to service claims. These bad set of agents give a bad name to the entire health insurance industry,” he added. 

Jha emphasized the need for better-trained professionals in the sector, stating, “We need good set of agents to come in!” 

His post quickly resonated with users, sparking a flurry of responses that reflected the frustrations of policyholders. One user shared a personal experience: “My cousin family has Star Health Comprehensive Policy, premium has suddenly been increased almost 30%, now agent is saying to migrate to Star Health Assurance Policy. Will it be considered new policy or conditions of PED will exist? And what would be the differences?” 

Another user raised questions about the financial incentives driving agents’ behavior, commenting, “Just curious… how much commission does an agent get on health insurance… like 2%, 5%, 10% etc.” 

Jha’s remarks have shed light on the critical gap in the insurance sector, where the focus on commissions may be overshadowing the core purpose of providing reliable support to policyholders.