Ethical considerations are crucial in the complex and often opaque world of insurance sales in India. Ensuring transparency, fairness, and the protection of client data while meeting sales targets requires a delicate balance for financial advisors. Deepak Ramniwas Bansal, a five-year Pune-based MDRT member, explores how clear communication, client-centric approaches, and unwavering integrity form the bedrock of ethical insurance sales.

If Bansal has learned one thing over the years, it’s that transparency and fairness are non-negotiable. “Clear communication is crucial when dealing with complex policies or terms that might be difficult for some clients to understand. I’ve adopted several practices to ensure our clients are well-informed and confident in their decisions,” he shares and adds, “First and foremost, we simplify the language. Insurance jargon can be overwhelming, so I use plain language to explain policy terms and conditions. Avoiding technical terms helps our clients grasp the essentials without getting lost in the details. Additionally, I provide detailed explanations of key terms, coverage options, exclusions, and other critical aspects of the policy. This thorough approach ensures there are no surprises later on.”

To further aid understanding, Bansal says, “I offer written summaries of the policies alongside the full contracts. These summaries highlight the main points and essential information, making it easier for clients to review and comprehend the terms. This practice not only fosters transparency but also builds trust.”

In today’s digital age, with the rise of big data and personalized pricing, maintaining ethical standards while utilizing client data is a significant challenge. With the help of an in-house software, Bansal is able to track records and manage client information securely. His dedicated support staff handles follow-ups and reminders, ensuring that client data is used responsibly and ethically.

“The lead generation process is primarily referral-based, which significantly reduces data risks associated with online leads. Meeting clients in person allows me to understand their needs better and suggest plans accordingly. This personalized approach ensures I offer tailored insurance products without compromising client privacy. Importantly, we never share client data with anyone, maintaining strict confidentiality at all times,” he adds.

Pressure to meet sales targets is an inevitable part of the job, but it’s crucial to uphold ethical standards even in challenging situations. Bansal’s approach is client-centric. He says, “I prioritize providing solutions that meet clients’ needs rather than merely chasing targets. This philosophy has been the cornerstone ofmy practice for many years, and it’s deeply ingrained inthe work culture. There have been times when I needed to achieve specific targets, and in such cases, I communicated transparently with my clients. We might ask them to make quick decisions to help meet the goals, but I never misrepresent facts or compromise ethics. This honesty fosters long-term relationships and trust, which are far more valuable than short-term gains.”

When faced with pressure, Bansal shares how he expands his efforts by meeting more people rather than relying on a limited client base. This broadens opportunities for business without compromising principles. In situations where achieving targets becomes extremely difficult, targets were put on hold rather than compromising ethics. For Bansal, maintaining integrity is paramount, and he believes that ethical practices ultimately lead to sustainable success.

One memorable instance highlighted the importance of Bansal’s approach. He shares, “A client, referred by another satisfied client was considering a complex policy. The terms were intricate, and the potential for misunderstanding was high. I took the time to explain every detail in simple language, provided written summaries, and answered all their questions patiently. The client appreciated the transparency and decided to proceed, not only because they understood the policy but also because the trust has been built.”

Bansal asserts, “By ensuring clear communication, respecting client privacy, and maintaining integrity, we can build lasting relationships with client and achieve sustainable success for our practice.”

Ethical considerations in insurance sales are not just about following rules; they are about fostering trust and building a reputation for reliability and integrity. “Through transparent practices, personalized approaches, and unwavering ethics, we not only meet our business goals but also make a positive impact on our clients’ lives. This is the true essence of ethical insurance sales,” Bansal says.

Contact: MDRTeditorial@teamlewis.com

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Ethical considerations in insurance sales