NAILBA Perspectives - September/October 2015 - (Page 7)
chairman's corner
Newsflash! In the Future,
Life Insurance MUST Be SOLD
DAVID LONG
NAILBA CHAIRMAN OF THE BOARD
T
he future of brokerage?
Visions of drinking from
a fire hose come to mind.
Change is so ubiquitous in our
business, predicting the future
could be the most valuable skill
one could possess to ensure success. Then again, those who shape
the future don't require tea leaves.
I believe a common thread in the
NAILBA membership is an entrepreneurial spirit that can and will
shape the future of not only brokerage, but the industry itself. There
are many factors that will go into
where we are in a generation, but
two that stand out to me today are
the future sales force and the regulation of that sales force.
The shrinking and aging army
of advisors is not a new topic. In
fact, it was a motivating factor
for what brought me into the business. When I came in in the mid
'90s, industry sales were flat, the
career system was dwindling to a
very small number of carriers, and
the average age of an advisor was
creeping into the upper 50's. I figured even if sales were flat, if there
were fewer people selling, those
who remained would have a bigger piece of the pie. Sound logic,
right? What I couldn't predict then
was that the ranks would shrink to
a point where the slice of pie would
be more than those that remain
could digest. This naturally creates
a scenario where the most lucrative
prospects are pursued first, and
much of middle America is never
approached about their needs.
Certainly efforts are underway
to address this issue. Direct marketing over the internet is probably the most visible of these strategies. Several NAILBA members have
found success in this arena. However, based on LIMRA research,
there are tens of millions of prospects that are interested, but still
uninsured. Further, a strong majority of those prospects would prefer
to work with a professional advisor. In other words, say it with
me folks-life insurance must be
sold. No matter how the consumer is reached, they want help from
an expert. And what is between the
lines there is they need an expert
to motivate them to complete the
purchase. Information is every-
where, but motivation is the less
discussed cousin of the professional sales process. As Blake from
Glengarry Glen Ross would say, we
need closers.
I'm not going to solve that
issue in this column, but NAILBA has recently launched a way
we can share ideas on this topic-
NAILBA Network. This is an interactive forum where members can
weigh in on a variety of topics. I
don't expect people to share proprietary secrets of where they get
advisors, but the topic of the future
salesforce is certainly broad enough
that a dialogue among members
could benefit the entire industry.
This is a big issue that requires the
collective attention of the entire
association. NAILBA Network provides a medium where we can share
our thoughts right from our inbox-
even I can figure that out! NAILBA
can move this issue forward if we all
join the discussion.
Speaking of a shrinking sales
force and an underserved middle
market, the current form of the
Department of Labor's proposed
Fiduciary Standard has the potential to dramatically intensify these
issues. As clearly laid out in comments to the DOL from several
industry associations, including a
joint letter from NAILBA and AALU,
the proposal fails on many levels.
The proposal concerns me for a
lot of reasons, but like most redundant regulatory proposals, I must
first question the motivation. I've
read comments, articles, columns,
etc. on the topic-for and against-
and have seen no reliable evidence
of a spike in consumer complaints
across the industry. It appears, as
usual, a broad sword is being used
where a scalpel, if anything, would
be more appropriate.
Furthermore, this sword is dull.
There seems to be a lack of knowledge of financial markets, as well
as consumer behavior, throughout
the proposal. Its implementation
would provide limited choices for
consumers, advisors handcuffed on
the depth and quality of education
they can provide, and potential
billions of dollars of implementation costs that will be passed onto
the consumers who can afford it
the least.
As consumers are discouraged
from seeking professional advice,
and potential advisors are unwilling
to enter the business, the retirement savings crisis in this country would worsen. Then the higher
net worth consumers would potentially be the source to shore up the
difference-a scary domino effect
nobody wants to see.
Proponents of the DOL proposal are a strong force. If we want to
continue to shape our future, we
must act now to bring sound judgement to this proposal. Talk to your
lawmakers and encourage your advisors to do the same. Be part of the
solution for our voices to be heard,
and all clients will reap the benefits.
And, of course, get on NAILBA Network and tell your fellow members
what you think.
Thanks for reading, let's make
our future.
www.nailba.org 7
http://www.nailba.org
Table of Contents for the Digital Edition of NAILBA Perspectives - September/October 2015
NAILBA Perspectives - September/October 2015
Contents
Chariman's Corner
CEO Insights
The Fine Art of Transition
NAILBA Charitable Foundation
Agency Successor Networking Group
Life Happens
Gearing up for NAILBA 34
NAILBA 34 Program Review
Calendar of Events
Index of Advertisers
NAILBA Perspectives - September/October 2015
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