What’s really happening in the fe business the last 2 yrs ?

[axeman462]

Dude your on block from now on .I gave you the benefit of the doubt many times .im the only agent who's ever shown deposits . Your just a Jealous person who can't stand a successful person

 

[jdeasy]

I work the fe space harder than you . But no I do no telesales per se . I did a few with cica before they changed

Now you do FE again? After taking over Medicare?

If you work the FE space then why don't you know about it?

 

[jdeasy]

JD when did Cvs Aetna / accendo get rid of the text sign? I tried to use it Thursday or Friday and noticed it was gone as an option. Did they announce that or just remove it? Aflac still had it as of yesterday I believe.

They never announced it that I know of.

It just became the only way to sign.

And "instant decision" takes 2 or 3 days.

They became a really terrible company a few years ago and now decided to get worse.

Even worse on med sups. I wrote a GI med sup with them using the Ky birthday rule. It took them over 3 weeks to issue it. Made her jump thru hoops to prove her birthdate and to prove she was already on a sup and what plan. Which are the rules. But here's the kicker, she was already a sup customer with them and had been for 10 years. Just using the birthday rule to lower her rate. Then they screwed up the first draft saying they couldn't locate the account. The same account they had been drafting for 10 years.

 

[noah]

My opinion:

1. FE went through a bubble phase with FFL and other MLMs bringing in hordes of new agents from 2018 to 2022.
2. Carriers who saw the run up in interest but didn't understand final expense got into the game during this time.
3. Carriers with subpar products got their asses handed to them over the past few years.
4. Telesales became the majority market, and carriers came to market with application processes with gaping holes prone to fraudulent activity.

To do FE right, carriers in the market or thinking about getting in should:

1. Get billing down to an exact science. You MUST beat the prospect to the ATM, every. single. month. TRUE….ANYONE WHO DISPUTES THIS IS WRONG
2. Only take bank draft. No more Direct Express, Netspend, Chime, and other lapse-o-matic business. It's all shit business. FALSE……TRANS BILLS DE CORRECTLY IT's QUALITY BUSINESS
3. Don't offer guaranteed issue. It's all shit business. FALSE…JUST SHY AWAY FROM REALLY SICK PEOPLE

4. This is crucial - don't get hot and bothered over a large distribution channel. Do what American Amicable and what KSKJ did. Find small to medium sized organizations focused on doing a quality job selling insurance and partner with them. The right kind of growth is always better than a ton of the wrong type of growth. TRUE
5. Get serious about back office auditing of new business. Aggressively screen new business for potential fraud.ABSOLUTELY TRUE……30-40% of the stuff I look at has been clean sheeted.

Keep pimping telesales so F2F guys can stand out by giving the clients what they want……eye contact,attention to detail,explanations they can understand when transacting final expense sales,customer service….etc.

We come to you….people love that !

 

[titeye]

Keep pimping telesales so F2F guys can stand out by giving the clients what they want,eye contact,attention to detail,explanations they can understand when transacting final expense sales,customer service….etc.

We come to you….people love that !

Damn, that's one of the best arguments I have ever heard regarding that debate!

 

[Jccwell]

My opinion:

1. FE went through a bubble phase with FFL and other MLMs bringing in hordes of new agents from 2018 to 2022.
2. Carriers who saw the run up in interest but didn't understand final expense got into the game during this time.
3. Carriers with subpar products got their asses handed to them over the past few years.
4. Telesales became the majority market, and carriers came to market with application processes with gaping holes prone to fraudulent activity.

To do FE right, carriers in the market or thinking about getting in should:

1. Get billing down to an exact science. You MUST beat the prospect to the ATM, every. single. month.
2. Only take bank draft. No more Direct Express, Netspend, Chime, and other lapse-o-matic business. It's all shit business.
3. Don't offer guaranteed issue. It's all shit business.
4. This is crucial - don't get hot and bothered over a large distribution channel. Do what American Amicable and what KSKJ did. Find small to medium sized organizations focused on doing a quality job selling insurance and partner with them. The right kind of growth is always better than a ton of the wrong type of growth.
5. Get serious about back office auditing of new business. Aggressively screen new business for potential fraud.

Spot on. I don't mind DE business though. My DE persistency is great

 

[hockeyday]

Dude your on block from now on .I gave you the benefit of the doubt many times .im the only agent who's ever shown deposits . Your just a Jealous person who can't stand a successful person

Lol I blocked that a long time ago

 

[Allen Trent]

Inflation doesn't affect life insurance much but low interest rates did for several years.

Inflation definitely impacts carriers

Labor costs way higher.
Utility costs way higher
Technology fees way higher
Vendor costs way higher for all the 3rd party software to write & UW the policies.

Add that with the lower interest rate environment overall along with higher mortality since 2020 & you are seeing detioration in all 3 of the math components related to insurance profit (expense ratio, mortality, investment returns)

Luckily the last 12-18 months investment returns have helped offset some of the slippage in mortality & higher expenses

 

[Todd King]

Spot on. I don't mind DE business though. My DE persistency is great

It's amazing what happens when you have a little bit of focus! Don't you find it quite odd that your DE persistency is great while the next agent says their DE business hardly ever sticks? Same with GI. How come one agent has great persistency with it while the other couldn't make it stick with super glue?

I don't think we can attribute that to just "luck". It has to be something you do that the other agents don't. Imagine that...doing something different!

 

[DonP]

Inflation definitely impacts carriers

Labor costs way higher.
Utility costs way higher
Technology fees way higher
Vendor costs way higher for all the 3rd party software to write & UW the policies.

Add that with the lower interest rate environment overall along with higher mortality since 2020 & you are seeing detioration in all 3 of the math components related to insurance profit (expense ratio, mortality, investment returns)

Luckily the last 12-18 months investment returns have helped offset some of the slippage in mortality & higher expenses

I laughed when I saw Newby's answer . Life ins is no different than any business . The costs you listed dig deep into profit margins . If you don't raise rates to offset inflation your profits fall . Rate increases have been small