Now that 2014 is well on its way, you really should take a moment to reflect on the direction of your insurance or investment practice. Why? Because our industry has been working hard to determine how to work with your new world. Insurance carriers decisions are resulting in different customer contact, policy delivery, and product focus.
Most of MVP's carriers are stock owned, which means that on any given day the executives of those carriers come to work with stockholders as their number one priority... not policyholders. They have been charged with managing for cost effectiveness, a robust return on investment, and capital maximization.
One of the major opportunities for carriers to free up capital is to reduce guarantees in their products. Many carriers have shortened long term guarantees on universal life products or eliminated term products with longer level premiums. Some carriers have limited or weakened term conversion guarantees. Carriers are designing application e-submission and policy e-delivery tools to take advantage of today’s technology, but also to eliminate the expense of human involvement.
We have and will continue to see an influx of indexed products in an effort to save reserve money and eliminate carrier's guaranteed premium responsibility. We are under greater pressures from independent carriers for more business from appointed producers. Lack of production results in faster termination of appointments. There is also a constant shadow of compensation adjustments.
So, where is the positive news? We all know our society is experiencing financial stress caused by health care costs and a lack of retirement savings. Middle America is desperately asking for help from trusted advisers. Help to protect them from dying too soon, or living too long. Help to pay their bills if they get injured or sick. Help to replace their income if they are disabled and can't work. Help to keep their standard of living during a longer life expectancy. Help to leave a legacy to their children after they are gone. Help to create and implement a plan that lets them sleep well at night?
MVP is positioned to be your best and easiest resource to provide these solutions! We would like to improve our service to you in 2014 and will be asking you these questions:
- How can MVP help you protect your customers and grow your business?
- What client problems can MVP help you solve?
- What is on your priority list for your brokerage agency partner? More sales strategies? Technology solutions? More customers? Training/education? Administrative support? Underwriting expertise? Marketing assistance?
MVP Financial Services is committed to helping you grow and flourish in this new world. We're convinced that 2014 is going to be a spectacular year to be working in this great profession!