Thursday, July 12, 2007

Distribution Channels of the Immediate Future, Part 2

As demographics shift, and as $41 Trillion passes between generations, you, the insurance carrier, have a serious shot at a lot of that money. The wealthy in this country will be looking for ways to protect their assets. Mortality and morbidity products are the answer in many cases, and you understand them better than the rest of the financial services industry. Now you just need to reach the customer. Here's how.

First of all, you will need new products with new features. An Annuity-LTC combo product would be nice. Then you'll need some leadership so that inter-silo sniping doesn't wipe out your initiative (you've seen it, I've seen it, don't let it happen this time). Then, you need to make it easy to buy.

Here's the cold, hard truth about the next generation of financial services clients... it's not that we don't like to wait, it's that we simply WILL NOT wait. You need to find a way to make buying your products as easy as buying a mutual fund, or your customers will just go buy something else.

Yes, I understand the regulatory environment. Yes, I realize the complexities of state regulation. What I'm saying is that our industry needs to DEAL WITH THESE THINGS NOW, or be swept aside by clients who will be starting with a total asset base of $41 Trillion.

Make buying a VUL as easy as dropping a ticket for a stock. Your new customers expect it. Do it now, because the clock is ticking.