Tied agents and Independent Financial Advisers(IFAs)

I wasn’t feeling well yesterday when I met a friend and was rather quiet. He said to me,” You don’t talk much. how do you sell your insurance products?” Those who know me will think I’m on the extreme end of the quiet paradigm. However, those who really know me well will say I’m more of an introvert than a party animal.

The fact is I don’t really talk when I’m with my prospect or client. I listen to their financial goals and issues then recommend what is suitable for them. Gone are the days where you walk in with brochures or speak through the phone to sell the latest plan in the market.

Having spent almost a decade in a tied insurance company before spending almost another decade in a Independent financial advisory firm, I would summarise the main difference as this –

Regardless where the financial advisor is from, he have the necessary solution to solve your needs.


However, as this cartoon depicts, the best solution for one person may be the best for another. In a typical tied agent’s recommendation, he will suggest solutions by looking into the solutions he have in hand and say ,” Your problem fits into this solution”

In a typical IFAs’ recommendation, he looks into your problems on hand and say,” This solution fits into your problem.”

In both instances, problems are identified & solutions are offered. The question is which way sounds better for you –
Getting you to fit into the solution or getting the solution to fit into you. I’m not a good salesperson and I can’t honey-coat a product that taste bitter. I choose the latter way by getting solutions to fit into you.