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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