NAILBA Perspectives Winter 2020 - Page 34


Uncomfortable truth about Disability Insurance

Unemployment levels are lower now than during the financial crisis of 2009 , however 35 % to 45 % more disability insurance is being purchased .
Trish Boon , Vice President of Business Development , International Disability Underwriters , Inc ., focuses on external sales and field relationship management . Previously , Trish was Chief Underwriter of Risk Insurance and Reinsurance Solutions , having 35 years of underwriting high-risk Life and Disability Insurance products .
Back in the 2009 housing / financial crisis , our company wrote an article regarding the increased importance of selling Income Protection . Now with the current financial crisis and unemployment levels due to COVID-19 , we are delivering a similar message to the marketplace .
Selling income protection products is not always an easy sell given a client ’ s overconfidence , or underestimation of ability to work through adversity and influence outcomes . Yet , given these unprecedented times , income protection sales are trending upwards with double digit increases in the disability insurance market .
Double digit increases
There are several key components contributing to the increase . While it is a slightly uncomfortable thing to say ; NOW is the time to capitalize on the opportunity to sell income protection due to an unfortunate health crisis in the U . S . and the world . Now is the time to present this product more than ever .
The prior objections are less frequent as we all feel vulnerable now not knowing what the future holds . The unknowns regarding treatments or vaccines or when the pandemic will not be so threatening to our health and well-being contributes to these overall feelings .
Touching on the opening paragraph , unemployment levels are lower now than during the financial crisis of 2009 , however 35 % to 45 % more disability insurance is being purchased now than in 2009 .
Again , we can attribute this increase to brokers not needing to overcome the objections from their clients regarding the previous perceptions of overconfidence and underestimating their ability to work through adversity .
Shortage of key executives anticipated Additionally , during these times employers are revisiting their employee ’ s benefits . The possibility of one or more key employees becoming disabled for a short time or longer period of time is causing uncertainty and a reforecasting of a shortage of leaders available in the workplace and employment pool . This shortage is expected to increase over the next 10 years according to The Employment Policy Foundation analysis and projections .
With all of this being said , now is the time to increase attempts and efforts to sell income protection and business product plans to individuals , business owners , and corporations . Even with social distancing and face-to-face meetings being limited , most carriers , brokers and broker general agents have quickly adapted to working remotely and virtually communicating with producers and clients .
This year has produced amazing innovation and resilience in our industry . With that , the future of our industry remains bright . Continued adoption of online tools and electronic processing capabilities will allow us to weather this together .
Now more than ever , the income protection market offers tremendous sales opportunities while providing important and relevant products to help consumers with their financial needs and income protection .
34 Perspectives Q4 2020