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QUESTION GOES UNANSWERED. A CUSTOMER GETS FRUSTRATED. A SALE
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| Industry
News |
| LIFE INSURANCE
SALES
– LIMRA reports that life insurance sales continued strong in the first
half of 2000. New annualized premiums increased 16%, face amount
increased 27% and the number of policies sold was up 4% over the same period
of 1999. Major driver was variable life sales with premiums up 41%,
face amount 34% and policies 12%. Corresponding sales figures were 39%,
38% and 16%.
STATE FARM AND
AON – State Farm further expanded its use of products developed by
outside insurers with an agreement under which State Farm agents will market
commercial insurance specialty products developed and serviced by AON.
The products will include coverage of professional liability, directors'
and officers' liability, errors and omissions liability for service providers
and other products.
THE $6 MILLION
DESIGNATION – The CFP Board of Standards is planning to spend in the
neighborhood of $6 million over the next two years in order to educate
the public on the value of the CFP designation. Considering that
in order to earn the CFP designation, an individual must pass a rigorous
10-hour exam and only 56% of those taking the exam pass it, the timing
may be right to tout the benefits of doing business with a CFP.
DIGITAL SIGNATURES
–
As of October 1, digital signatures have the same legal weight as those
inked on paper. The "e-sign" law allows consumers to close mortgages, sign
life insurance applications and seal contracts with the click of a mouse.
Under the e-sign law, an electronic "signature" may be any personal identifier
that can be broken down into electronic code...expect to see not just actual
signatures, but also "Smart Cards" and ID confirmation based on unique
bodily measures, like fingerprints, eyes or voiceprints.
THE ASSOCIATION
OF BANKS IN INSURANCE – Hartford Life CEO, Lon Smith, spoke at the
group's annual conference and challenged America's bankers to seize the
"enormous opportunities" to sell more life insurance. Citing LIMRA stats
that 38% of Americans believe their households need more life insurance,
he issued this challenge: "Someone will fill the need for individual life
products...I challenge you to be that someone." We challenge the
professional advisors to be that someone!
NO ESTATE TAX?
BILLION DOLLAR HIT? – More from LIMRA. If George Bush wins the election
and Congress eliminates the estate tax, the life insurance industry could
take a billion dollar hit. The LIMRA study predicts that if survivorship
life sales were to stop completely, new premiums would drop by about eight
percent or $1 billion. But this is worst-case scenario...all survivorship
life is not sold for estate tax purposes. The legislation that would
phase out the estate tax by 2010 would also eliminate the stepped-up basis
at death for certain property. The higher capital gains taxes that
result could then be paid with life insurance. For more information, contact
the author of the report, Elaine F. Tumicki, CLU, ChFC, LLIF, at etumicki@limra.com.
BROKERAGE BUYOUT
– National Discount Brokers is being acquired by Deutsche Bank AG in a
cash deal valued at about $1 billion.
NEW CODE –
The Society of Financial Service Professionals has released a new "Code
of Professional Responsibility." You can review it at http://www.financialpro.org/sfsp/About/CodeofProfResp.htm
GAY HEALTH
– According to the Human Rights Campaign, companies providing health coverage
for domestic partners of gay employees increased 25% last year. The figure
was 44% for Fortune 500 companies.
EEO LAWSUITS
– One last note from our friends at LIMRA. They now offer Hire Learning
(pronounced "Higher Learning"), a self-study training program for managers
and recruiters that provides information and advice on how to comply with
the laws and regulations governing the hiring process. Avoid lawsuits.
Contact LIMRA at selection@limra.com.
SLAVE INSURANCE
– Aetna, New York Life and others will soon be asked to provide details
on "slave insurance" sold prior to emancipation. A slave owner received
a $500 payout from an annual premium of about $11 on an insured slave.
Expect hearings to determine if the slaves' descendants are due reparations. |
|
| Extra!
Extra! |
INSURANCE
CAREERS, TRAINING, RESOURCES
AND
MORE!
insurance.ce.com
is the industry's premier online careers and learning resource. Everything
for the insurance professional in one place - job listings, industry courses,
seminars, certifications and licensing, career planning resources, and
industry news and tends. Plus, insurance.ce.com
is home to the Internet's leading career and education technologies - use
our resources to chart a successful career path or match yourself to potential
opportunities. All insurance.ce.com
features are free to site visitors - visit
today and let us help you advance your insurance career. |
|
| Marketing/Tax
Update |
| NEW
DI CONCEPT – Unum, the disability income giant, has introduced a new
individual policy that allows customers to change coverage as their needs
evolve. The plan has a built-in option to transform the income protection
to long-term care insurance when the owner is between the ages of 60 and
70.
WHAT'S
YOUR MARKETING BUDGET? – According to an FP Interactive poll, 40% of
financial professionals spend 20% or more of their annual revenue on marketing.
Another 20% spend from 11% to 20%. For details and other surveys, visit
http://www.financial-planning.com/cgi-bin/survey.pl
WHERE
TO SPEND YOUR MARKETING DOLLARS – Again, according to FP Interactive,
best-selling business books are a good place. Many financial planners find
the books to be great client retention tools. Here are a few popular titles..."On
Your Own: A Widow's Passage to Emotional & Financial Well-Being" by
Armstrong; "Who Moved My Cheese?" by Johnson; "The Millionaire Next Door:
The Surprising Secrets of America's Wealthy" by Stanley and Danko; "Rich
Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor
and Middle Class Do Not" by Kiyosaki and Lechter; "The Prosperous
Retirement" by Stein. Or you could just close out the entire deal and give
"The Only Investment Guide You'll Ever Need" by Andrew Tobias! Check out
the FP Interactive Bookstore at:
http://www.financial-planning.com/bookstore/bookstore_books.html
STEALTH
AD CAMPAIGN – Allstate and State Farm reportedly spent a combined $2.9
million advertising on music download sites (e.g., Napster) that are far
from the "fit" normally pursued by these leading insurers in their advertising.
Problem is that the companies weren't even aware of the marketing campaign.
Both companies have advertising arrangements with Microsoft Network (MSN),
which apparently redirected the ads from the more "staid" sites favored
by the insurers to the music download sites, which were experiencing record
spikes in traffic following an injunction against Napster.
IF
EVERYTHING IS IMPORTANT, NOTHING IS IMPORTANT – Take the advice of
Howard Wight, Steven Covey and others...prioritize. Focus on first things
first...don't start with the easy stuff that eats up valuable time and
energy.
| FREE MARKETING
NEWSLETTER - How to improve your direct mail results, get more attendance
at seminars, have people calling you from a direct response newsletter,
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subscription, click here: http://www.nfcom.com/promo.cgi/fmenews?h=freemonthly.htm |
FRAUDULENT
TRUSTS – The IRS is really cracking down on wild trust schemes...a
30% increase in convictions thus far this year. While it is legitimate
for a trust to deduct distributions to beneficiaries, one fraudulent scheme
uses a series of trusts to illegally reduce taxable income. Promoters
can charge $5,000 to $70,000 for their services and target high-income
taxpayers. Just remember, "If it sounds to good to be true, it probably
is." IRS has details at http://www.treas.gov/irs/ci
TAX
UPDATE – No action yet in Congress on passing the pension reform legislation
that would increase contribution limits. On the estate tax front,
a group of moderate Democrats introduced legislation that would lower estate
taxes by increasing the unified credit and decreasing estate tax rates.
With the 106th Congress in its waning days, if action is going to be taken
on either of these tax measures, it must come soon.
POPULAR
SITE – Morningstar reports that more than 30,000 financial professionals
have registered for their new site for investment professionals.
Located at http://morningstaradvisor.com,
the site is free and provides financial professionals with investment information,
editorials, news, reports, etc.
NATIONWIDE
STUDY – Compared to other affluent professionals, high-income small
business owners tend to be more likely to use accountants and attorneys
for financial and retirement planning advice. Major reason...existing
relationships. Financial advisors were the first choice for professional
planning advice.
SEX
AND RISK AVERSION – Another Nationwide study reveals that most educated
and highly-paid women in America have a greater investment risk aversion
than their male peers. While 57% of the high-income professional men surveyed
reported a willingness to take risk for substantial gain, only 40 percent
of the women surveyed agreed.
THE
WIRELESS BROKER – Early next year, BenefitMall.com
plans to help select brokers become wireless with a Palm(TM) VII handheld
computer for editing quotes and checking the case status. According
to BenefitMall, "The phrase, 'I'll get back to you,' may well become
a thing of the past..." |
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