RNA? Final Expense Makeover?

[Newby]

The reason that the insurance companies have to raise rates is mainly the economy. They have to gain interest off the premiums they collect for it to all work. They don't get anywhere near the interest that they did when they designed the product.

It's hitting all life insurance companies.

 

[jdeasy]

Are the changes only to the F/E product, or all their products?

Only to the FE. They already cut commissions by 10 points on the Essential Life earlier this year.

This will be a deal killer for them. How they react to that will tell the story. If their business shrivels up like Foresters they will either pull the product or try to make things right.

Foresters is almost one year into their self imposed death sentence. They are now coming back to IMO's begging for another chance and wanting to know how to get back into the game. I doubt they will take the advice they are asking for.

Right now RNA is oblivious to how this affect them. Or, that's how they act. Maybe they do know and don't care?

What is obvious is that RNA's vision of themselves is not the vision they are comfortable with or wants it to be. They are an FE company. Their top IMO is a final expense IMO. Their number 1 agent is a final expense agent. As are their top 10 agents.

They even separated the FE and Annuity awards this time so they could give awards to the annuity side. They are creating a divide within themselves and the one they seem to want to part company with is the largest side of that divide.

I saw someone post here that RNA wants to focus on Annuities, term, UL and the Essential life product.

I disagree with that. They don't want the Essential Life included in that unless it's the 17 and under group or the over $100,000 face. They cut commissions on the over age 17 and under $100,000 face already.

They have looked at themselves in the mirror and they are not happy with the reflection.
They seem to want to be an annuity, term, UL and wealth management company with a field staff of mostly financial advisors.

To me they are not that kind of company and never will be. I guess we will see who is right on that?

 

[houcoogster]

I understand that but it costs a ton of money to buy leads and run a FE operation just to have the business model turned upside down when renewal commisions are cut. Those renewal commisions are what make doing this economically viable. To go from 12 to 3 percent can sink a business.

 

[jdeasy]

Well y'all need to tell them (the new carrier) straight up, if you can't handle the kind of numbers you guys can produce don't BS us now just to have some shennanimgs pulled on us a year or so from now.

If all you (new carrier) can handle is 100 apps a week we can work with that just let a few regions offer it. They need to be honest and not let their mouth/eyes overload their pocketbook.

Y'all probably sent more business to RNA than they ever saw since inception.

The handwriting was on the wall a year and half ago when they "let go" the person that brought RNA into the FE world. That person pretty much designed the FE product and made RNA into a primarily FE company.

I'm not saying we saw that sign, I certainly didn't, but hindsight is 20/20 and it seems we should have seen it then.
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I understand that but it costs a ton of money to buy leads and run a FE operation just to have the business model turned upside down when renewal commisions are cut. Those renewal commisions are what make doing this economically viable. To go from 12 to 3 percent can sink a business.

Actually the guy that told me that went from 12 to 9. A 3 point cut in renewals not a 9 point cut. He is also not a lead IMO. It does seem the small IMO's got hit harder than the larger ones. At least that's their story.

 

[axeman462]

When renewals get cut, its generally to new business right? Not to existing business?

 

[Jerard]

That's easy.

There is 5-Star, Monumental, ForeThought, Americo, Oxford, ING, Assurity, American Continental, Settlers, American Memorial, Standard Life, Colorado Bankers, and more comming every day.

Ok, so the only changes were talking about is only with the SI and GB products? Any clues on whether this will affect the rates of the Essential Life?

 

[HoosierDaddy]

Also making the change to a "Non-Commissionable" policy fee...

R.I.P Royal Neighbors... We had a good run... You will be missed!!!

 

[Jerard]

R.I.P Royal Neighbors... We had a good run... You will be missed!!!

We'll always have Paris...

 

[houcoogster]

Also making the change to a "Non-Commissionable" policy fee...

R.I.P Royal Neighbors... We had a good run... You will be missed!!!

There you have it folks, the verdict is in!

 

[Rearden]

Securus is heavy into pushing American Memorial with the same non-commisionable policy fee.