An intersting LIC article concerning "The Future of Final Expense" One statement that caught my eye was:
"But change is coming. As increased commissions inspire higher sales of lower quality business, more carriers are experimenting with selling final expense direct to consumers. Since final expense sales are primarily driven by a direct mail lead, this is a relatively easy adjustment. Rather than send the lead to an IMO to parse out to an agent, the prospect can simply call the home office directly. Almost all final expense carriers incorporate a point of sale telephone interview in their new business process, and many carriers have already made this process paperless and highly efficient. Incorporating a call center with a licensed sales representative into current practices is logical and intuitive enough to almost be a no-brainer.;"
We agents tend to shoot ourselves in the foot by trying to see what we can "sneak" through the underwriting process. We choose companies based on certain "niches" without giving those companies the "good" business that is needed to offset the increased risk of the "niche". Of course, the companies bring it upon themselves to a certain extent. They develop plans with those niches without requiring any quantity of "preferred" business to go with the niche business. Perhaps Settlers has the right idea when it comes their Bronze. They have it as an "accommodation" to the agents but they don't want an overload of it.
Another statement made is:
A few final expense companies have experienced even better mortality on policies they’ve sold with an in-house call center than they have with agent sales. I’m not sure if this says a lot or a little about the value of field underwriting but either way the message is not a positive one.
If we IAs continue to make commission paramount and do not take our responsibility as a "field underwriter" (there is that phrase again ) as seriously as we do our prospecting, then we may find we aren't needed as much as we think we are. As an old guy I won't be around long enough to see whatever changes that this will bring about but you young guys might give it some thought.
Here is a link to the article.
The Future of Final Expense
"But change is coming. As increased commissions inspire higher sales of lower quality business, more carriers are experimenting with selling final expense direct to consumers. Since final expense sales are primarily driven by a direct mail lead, this is a relatively easy adjustment. Rather than send the lead to an IMO to parse out to an agent, the prospect can simply call the home office directly. Almost all final expense carriers incorporate a point of sale telephone interview in their new business process, and many carriers have already made this process paperless and highly efficient. Incorporating a call center with a licensed sales representative into current practices is logical and intuitive enough to almost be a no-brainer.;"
We agents tend to shoot ourselves in the foot by trying to see what we can "sneak" through the underwriting process. We choose companies based on certain "niches" without giving those companies the "good" business that is needed to offset the increased risk of the "niche". Of course, the companies bring it upon themselves to a certain extent. They develop plans with those niches without requiring any quantity of "preferred" business to go with the niche business. Perhaps Settlers has the right idea when it comes their Bronze. They have it as an "accommodation" to the agents but they don't want an overload of it.
Another statement made is:
A few final expense companies have experienced even better mortality on policies they’ve sold with an in-house call center than they have with agent sales. I’m not sure if this says a lot or a little about the value of field underwriting but either way the message is not a positive one.
If we IAs continue to make commission paramount and do not take our responsibility as a "field underwriter" (there is that phrase again ) as seriously as we do our prospecting, then we may find we aren't needed as much as we think we are. As an old guy I won't be around long enough to see whatever changes that this will bring about but you young guys might give it some thought.
Here is a link to the article.
The Future of Final Expense
