ID 20 WINNERS — Q & A
ID 20 winners from page 12
Adding to the mix
Dan Allison : Any time there are significant challenges in any industry , innovative firms can capitalize by being progressive while others can succumb to the change . I believe distribution for insurance products has begun to shift and will significantly shift toward the fiduciary marketplace . The days of focusing on a proprietary product or one specific company and their product set should come to an end . As fiduciary becomes a mainstream word , consumers will demand that behavior from us as they should . For many this presents a challenge as the RIA and fiduciary space is quite different than traditional brokerage . From the language and terms they use in their planning to their core belief of the products that we sell , they are a completely different animal . As insurance firms adjust to this market they present a huge opportunity for distribution that understands their needs , their beliefs , and the various ways to engage them effectively .
As fiduciary becomes a mainstream word , consumers will demand that behavior from us as they should .
Dan Allison
Kurt Fasen : Many opportunities will come from an increased need and awareness for planning . For example , there will likely be an increased demand for estate planning due to the continued uncertainty about potential changes to the estate tax regulations .
With planned changes to estate taxes coming at the end of 2024 and the threat of earlier changes – now more than ever discussions are coming back to helping people find ways to retain the value of their estate with various planning solutions .
Some wealthier clients ($ 5m net worth +) will likely look to leverage the low interest rate environment and use premium finance techniques to find different approaches to pay . Outside of the very wealthy , more people have become increasingly aware of the need for risk planning which will likely drive more interest in protection products and easier methods of obtaining it .
Alan Protzel : It ’ s time for strengthening the integrating of life insurance into the financial planning process . Inviting and encouraging planners and advisors whose first language is not life insurance to understand the importance of including life insurance into their process .
High impact of low rates
Rob Carney : Although I am optimistic about the economy overall , low interest rates will continue to put pressure on carriers ’ profitability , impacting product pricing for consumers .
Tim Ash : Low interest rates and the pressure it puts on insurance companies is one of the biggest challenges facing our industry along with the response to the pandemic and hopes of a successful vaccine , the political landscape with a change in the Presidency and lastly , getting financial advisors to make risk management a pro-active conversation vs . a reactive one .
Stirring things up
Steve Katz : COVID is certainly stirring things up . Underwriting limitations and severely elongated service times at the carrier level are certainly a challenge , as well as continued low interest rates , affecting both products and carrier profitability .
Kurt Fasen : I think we ’ ll see significant movement in cases that were forced to the sidelines in 2020 due to COVID-19 . Carriers simply weren ’ t placing over table 4 , but with a vaccine in place , they may be more willing to look at these cases which could mean substantial business for many advisors and carriers .
Tim Ash : I would also say firms that haven ’ t evolved into the virtual delivery of services , will find it difficult to compete on a go forward basis .
Point and Click Reality
Sylvia Gordon : “ Alexa send me a life insurance quote .” The biggest and most long-lasting challenges will continue to be advancements in technology . Agents who refuse to adapt are becoming dinosaurs . Agencies that can ’ t or won ’ t invest heavily in tech are falling behind and this race into the future will only be amplified post Covid . Yes , we see an increase in adoption of electronic application processes and electronic policy delivery , but the pace is glacial . We risk being made obsolete by Big Tech and they have made it clear they are coming for our industry . Amazon , I see you .
Kurt Fasen : In 2020 , we saw a significant change in the approach many carriers use for the buying process . Many clients now can obtain life insurance very quickly with the use of the new Automated Underwriting approaches and I believe this will only accelerate as we move into the coming year .
ID 20 winners continued on page 16
14 Perspectives Q1 2021