Improving performance innovation
With the economic realities and pull for transparency , this “ performance innovation ” has come under increasing pressure . There is a host of commentary and various debates on the topic , but the reality is that responsibly navigating product innovation is more complex and nuanced than many simplified arguments present it to be .
Helping consumers reach their financial goals requires an integrated strategy using both insurance and investment products . In a world full of competitive pressures , in and outside of our industry , there ’ s an understandable propensity to design products that will illustrate attractively . Everyone wants to put their best foot forward , and customers deserve good solutions .
Finding the right balance is the trick . Demonstrating the financial value of the promises made in an insurance contract usually requires running illustrations . These illustrations rely on making assumptions about the future , including unpredictable economic environments the product will be operating within .
Chasing superlatives
The “ value ” of products is falsely measured when we primarily focus on this idea of chasing superlatives — the higher illustrated cash value or death benefit ; the lower premium ; the higher current dividend rate ; the higher rate of return . These are all temporal values , based on forward-looking assumptions , that are not consistent from carrier to carrier .
Necessary complexity should remain where it makes sense for purpose-driven innovation , but we must refrain from over-engineering .
Our opportunity is to look ahead , and design products that help our policyholders adapt to an ever-changing landscape of financial scenarios and help them navigate their future , not predicated or designed to perform in the past .
Improving outcomes
Economics-based strategies — a belief that a holistic financial strategy needs to work in every scenario — are powerful for companies and clients . It means embracing a clearer line between risk acceptance and insurer promises when policyholders are pursuing cash value growth inside of the policy . For most individuals , life insurance and asset-based LTC protection can be valuable components of an integrated financial game plan , improving both outcomes and resilience when things don ’ t go as expected .
Increasing the understanding and demand for these resilient insurance solutions will help drive long-term success . And resilience is not illustrated , but proven over time by products that offer compelling value at the outset , are understood , and “ do what they say they will do ” over time .
Exceeding expectations
Success in business is fundamentally based on meeting or exceeding customer expectations . As the financial professional , you are the “ CEO ,” the Chief Expectations Officer , in charge of setting those expectations and increasing demand for responsible product innovation . Setting them unrealistically high , especially on things that are outside of your control , invites failure . Providing insight and clarity into your products help clients cut through the noise and have clear expectations to better understand and manage their financial security .
We have an incredible opportunity in front of us . People want what our products can provide — stability , certainty , peace of mind . Innovation to make our products easier to acquire , and purpose-driven product innovation are critical to reaching more people . We deliver true value through trusted guidance and products that stand the test of time .
After all , success will not be measured by what we promise , but what we deliver .
As the financial professional , you are the “ CEO ,” the Chief Expectations Officer , in charge of setting expectations ; increasing demand for responsible product innovation .
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