People in the Business 3-5 Yrs how Are Your Renewals?

[CMS]

Been independent for 8 years now. It took me 7 years to build up enough renewals to work in relax mode. A lot of agents thinks you can get get rich over night. For some it happens overnight. The rest of us have to build up over time.

 

[Newby]

The Insurance Carrier is loving it if they have a 50% persistency after 5 years with FE/SIWL... Very few carriers are at that mark. I am at 93% on 5 years for UL and other Fully underwritten Product and most companies strive for 80-85%. You can see a major reason why there are few companies that stay in the FE business for any long period of time.... It is short term thinking in a long term business.

Part of the problem though is that entire agencies have flipped all their own business to get the first year commissions two and three times. Those guys cost the companies a lot of money.

 

[rousemark]

The Insurance Carrier is loving it if they have a 50% persistency after 5 years with FE/SIWL... Very few carriers are at that mark.

I am at 93% on 5 years for UL and other Fully underwritten Product and most companies strive for 80-85%.

You can see a major reason why there are few companies that stay in the FE business for any long period of time.... It is short term thinking in a long term business.

I can remember being a company several years ago that had to raise rates because persistency was too good.. More people hanging onto the polices than they had estimated meant more claims than anticipated as the block aged.

 

[John Galt]

One of my favorite topics.

I've beat the renewal drum pretty hard. I've been writing for 18 years but only products that have renewals for around eight. I have always favored higher renewal companies. Some like, Assurity have much higher renewals. Settlers, Lafayette, American Memorial, and many others all have decent 10-year or longer renewals. If you throw in some Med Sup cross sells, FE agents can build a substantial renewal base. It gives you a lot of breathing room.

I don't doubt the government is going to screw with Medicare insurance and all parts of the insurance industry at some point. But right now it's good. They could ruin FE with the stroke of a pen. But you just can't dwell on things that haven't happened yet.

I would think the medsupp would be a bigger target due to the fact its already somewhat "managed" by big brother. I dont see how a stroke of a pen could kill off FE...anymore than a stroke of a pen could kill of traditional FU life products.

 

[Newby]

I would think the medsupp would be a bigger target due to the fact its already somewhat "managed" by big brother. I dont see how a stroke of a pen could kill off FE...anymore than a stroke of a pen could kill of traditional FU life products.

Several examples of things that could happen:

1. Make the minimum policy size sold to people 65 and older be $25,000. Washington state has already done something very close to this.

2. Make insurance sold to seniors be non-commission able.

3. Require scope of appointments for all face to face meetings with seniors. Ohio and CA have something similar but I don't think it's enforced much.

4. I've had politicians affect my business twice in my life with just the stroke of a pen it was completely unexpected. Once was when Kentucky required us to get funeral director licenses to sell funeral insurance. The other time was when I was a Honda dealer and honda signed a consent decree with the government to quit selling Honda 3-wheelers and you had require anybody looking at a four wheeler to watch a 60 minute video on how it was probably going to kill you before we could even show them one.

Never underestimate the power of crazy politicians.

 

[Mattschmidt]

Several examples of things that could happen:

1. Make the minimum policy size sold to people 65 and older be $25,000. Washington state has already done something very close to this.

2. Make insurance sold to seniors be non-commission able.

3. Require scope of appointments for all face to face meetings with seniors. Ohio and CA have something similar but I don't think it's enforced much.

4. I've had politicians affect my business twice in my life with just the stroke of a pen it was completely unexpected. Once was when Kentucky required us to get funeral director licenses to sell funeral insurance. The other time was when I was a Honda dealer and honda signed a consent decree with the government to quit selling Honda 3-wheelers and you had require anybody looking at a four wheeler to watch a 60 minute video on how it was probably going to kill you before we could even show them one.

Never underestimate the power of crazy politicians.

Good stuff here.

I've attended some NAIFA meetings, where politicians have discussed about insurance and financial products commissions.

If they were to change to the commission structure that other countries have, youll see a mass exodus of agents leaving the industry

 

[rousemark]

Several examples of things that could happen:

1. Make the minimum policy size sold to people 65 and older be $25,000. Washington state has already done something very close to this.

2. Make insurance sold to seniors be non-commission able.

3. Require scope of appointments for all face to face meetings with seniors. Ohio and CA have something similar but I don't think it's enforced much.

4. I've had politicians affect my business twice in my life with just the stroke of a pen it was completely unexpected. Once was when Kentucky required us to get funeral director licenses to sell funeral insurance. The other time was when I was a Honda dealer and honda signed a consent decree with the government to quit selling Honda 3-wheelers and you had require anybody looking at a four wheeler to watch a 60 minute video on how it was probably going to kill you before we could even show them one.

Never underestimate the power of crazy politicians.

Amen.. Keep preaching Brother Scott...

 

[Bishop Don Shizzle]

Amen.. Keep preaching Brother Scott...

Yes, Bishop Newby, preach it.

 

[yogooglethis]

Several examples of things that could happen:

1. Make the minimum policy size sold to people 65 and older be $25,000. Washington state has already done something very close to this.

2. Make insurance sold to seniors be non-commission able.

3. Require scope of appointments for all face to face meetings with seniors. Ohio and CA have something similar but I don't think it's enforced much.

4. I've had politicians affect my business twice in my life with just the stroke of a pen it was completely unexpected. Once was when Kentucky required us to get funeral director licenses to sell funeral insurance. The other time was when I was a Honda dealer and honda signed a consent decree with the government to quit selling Honda 3-wheelers and you had require anybody looking at a four wheeler to watch a 60 minute video on how it was probably going to kill you before we could even show them one.

Never underestimate the power of crazy politicians.

Protecting seniors is a no risk agenda for a politician looking for more votes. In the zeal to protect seniors from unscrupulous agents especially in the annuity market it is possible in our Nanny State that the FE industry could start seeing more rigorous marketing rules.

 

[goillini52]

Protecting seniors is a no risk agenda for a politician looking for more votes. In the zeal to protect seniors from unscrupulous agents especially in the annuity market it is possible in our Nanny State that the FE industry could start seeing more rigorous marketing rules.

Don't you just love it when those unscrupulous politicians look out for our best interests by wanting to protect us from ourselves?