Foresters is done with Voice Sig

[theinsuranceman]

Do you think this might be Forester's first step towards the exit door? Weren't there some agents up here last year grumbling about underwriting becoming tighter and/or rates raised on certain age bands? Does this make Foresters agents stop and think about their future there?
Especially in light of Settlers getting out of the FE business?

 

[theinsuranceman]

I have always assumed that applicants will lie more on a mail order application or a phone application than they will with a person face to face with them. I have no data to back that up but I always assumed it's the main reason that many companies require face to face.

Of course that goes completely out the window if the agent meeting with them is crooked and coaches them to lie. And there is never a shortage of those agents.

On the phone, when the recording starts after the app is filled out, any lying by a prospect all of a sudden comes out. The recording is the key for that.

Just like it's easier to influence the client to buy doing face 2 face, logic would say it's also easier to influence the client to lie doing face 2 face.

 

[rousemark]

I have always assumed that applicants will lie more on a mail order application or a phone application than they will with a person face to face with them. I have no data to back that up but I always assumed it's the main reason that many companies require face to face.

Of course that goes completely out the window if the agent meeting with them is crooked and coaches them to lie. And there is never a shortage of those agents.

At least on the a paper app, you do have a signature that can be examined if there is reson to believe someone else completed the app.. I don't know what the safeguards are with a voice signature but with a digital signature there are actually none.. For example Manhattan's online app only requires the mothers maiden name be typed in.. Anyone could do that. I suspect that is the reason they quit using it for the life plans (gave much the same reason as Foresters) even though they still use it for the ancillary health.

 

[Abrasax]

All you guys looking to get into telesales, especially agencies, should take note of this. Foresters is one of the largest producers of final expense premium in the industry (with an independent distribution). They are getting out because they are not making money.

Why do you think Foresters wasn't making money? I'm assuming that your carriers are still profitable since your business model works. So what do you think is the difference?

 

[NSRH]

Why do you think Foresters wasn't making money? I'm assuming that your carriers are still profitable since your business model works. So what do you think is the difference?

Foresters had a loose process with very little oversight. Most IMO's fail in telesales for the same reason.

Companies are already moving away from the broker model, I would even say, most companies dislike the broker model because it allows agents to exploit health niches, and not offset those niches with healthier business.

Telesales will not work in a broker model. It require strong carrier/IMO partnerships to grow together.

 

[suranceman]

Why do you think Foresters wasn't making money? I'm assuming that your carriers are still profitable since your business model works. So what do you think is the difference?

Its because amam does not allow independent agents to sell their product via voice. They require CC's to get approved for it.

Also, their product has far more restrictive underwriting while also costing more (except for smokers).

 

[Baseball7]

Companies are already moving away from the broker model,

For example.....

 

[Mattschmidt]

Foresters had a loose process with very little oversight. Most IMO's fail in telesales for the same reason.

Companies are already moving away from the broker model, I would even say, most companies dislike the broker model because it allows agents to exploit health niches, and not offset those niches with healthier business.

Telesales will not work in a broker model. It require strong carrier/IMO partnerships to grow together.

Disagree. Many companies we speak and work with love the independent channel and are shortly going to allow sales thru phone, email etc..

I think problems come from certain IMOs who tell their agents to only write certain business or health issues with particular carrier.

Companies are smart and catch on quick to these types of IMOs

 

[rousemark]

Disagree. Many companies we speak and work with love the independent channel and are shortly going to allow sales thru phone, email etc..

I think problems come from certain IMOs who tell their agents to only write certain business or health issues with particular carrier.

Companies are smart and catch on quick to these types of IMOs

+Companies also make the mistake of jumping in the "next big thing" only to get out in a few years after they find it was not what they thought. Agents aren't the only ones that get greedy..

 

[Mattschmidt]

+Companies also make the mistake of jumping in the "next big thing" only to get out in a few years after they find it was not what they thought. Agents aren't the only ones that get greedy..

Good point. I also believe they need to do due diligence before hopping into bed with certain IMOs as well. I'd bet Foresters reevaluates things and will have their product available to select groups within a year or so