Insurable Interest Canadian Insurance Blog

Staff | October 16, 2019 Franklin Templeton Investments Corp. has appointed William Tsotsos as its new head of institutional. Tsotsos will lead the firm’s Canadian institutional business strategy, covering all facets, including sales, relationship management and consultant relations. He’ll work with Franklin Templeton’s portfolio managers, product specialists, client service and marketing teams. Read: Franklin Templeton appoints new senior managing director of alternative strategies Tsotsos has been in the financial services industry for more than 20 years and has experience with a variety of institutional investors, including the sub-advisory channel and its consultants and advisors. Before he joined Franklin Templeton, Tsotsos was senior vice-president and head of Canada for BrightSphere Investment Group (previously known as Old Mutual Asset Management), where he oversaw the firm’s institutional business. Prior to that role, he was a managing director at Baring Asset Management, leading business development, consultant relations and client service in Canada.  Read the full article at BenefitsCanada.com

Soon after the first insurance policy was written, and the first investment account was opened, criminals began looking for ways to misappropriate funds. From the beginning, financial services companies have grappled with the challenge of creating a seamless customer experience, while also providing a level of security that protects both the company and the customer. In the current environment of the internet and advanced technology, this problem compounds exponentially. While the latest tech allows for easier and smoother business processes for consumers, it also opens up new avenues for criminal activity. The very defenses that companies set up to combat fraudsters can negatively affect the customer experience that they work so hard to cultivate. A Growing Threat The fraud threat is growing and continues to reach further into the financial services landscape. A LIMRA survey conducted in June 2018 found that three product lines in particular experienced the greatest increase in attempted fraud: individual life insurance (76%), individual annuities (75%) and retirement plans (52%). In eight out of 10 instances, the increases are related to attempts at account takeover. In 2016, losses from account takeovers in the U.S. equaled $2.3 billion, an increase of 61% from 2015, a Javelin Strategy...

My business is Medicare. That’s all. In many ways, it is similar to securities and financial services in its rules. There are restrictions on advertising and limitations on what we are allowed to say and how we say it. There are also record-retention requirements and even a cooling off period for selling other products. Many of our marketing activities are regulated by the federal government. And the federal government has strict guidelines for the sale of Medicare-related insurance. One of those guidelines deals with first contacts and referrals. I’m still an insurance professional, like you. To avoid having to prospect like a newbie every week of my career, I need to build on referrals. But I cannot ask for names and phone numbers of people I can call. I can get an address and send a note, but even that has restrictions on what can be sent. I might be able to host a dinner or lunch, but that skirts right along the lines of rules that state that the moment I talk shop, I might be in violation, depending on what is said and how it is interpreted. Getting Referrals As a result, the traditional ways of asking for...

We meet with a lot of people in our line of work, and we need to learn about them quickly and adapt like chameleons when presenting solutions to them.  Client personalities typically fall into four distinct categories:  the driver, the intellect, the feeler and the amiable. If you tailor your advice to meet your clients’ personality types, you’ll have more fruitful interactions that expand your opportunities for success. To implement this concept into your practice, begin with an examination of the four personality types and categorize your clients accordingly. The Driver We’ve all worked with the driver or boss, the client who has plenty of their own ideas and wants those ideas to influence every decision. Let these clients take the lead and simply facilitate the conversation toward the right solution by asking probing questions. If you are discussing life insurance, you don’t need to spend time telling them why they need insurance, because they already knew that when they sought you out. Acknowledge their drive and success and ask some questions along the way, such as “How much income do you want and how much do you want your family to have?” and “If you didn’t come home tomorrow,...

I vividly remember the moment when I became a confident public speaker. I had been a member of my local Toastmasters club for many months, dutifully delivering my share of speaking parts. But my personal breakthrough remained stubbornly elusive. My mind remained susceptible to random whiteouts when I locked eyes with an audience member. I would fumble over words as my mouth raced ahead of my brain like a drowning man desperate for oxygen. This condition is no doubt familiar to anyone who struggles with public speaking. The National Institute of Mental Health reports that public speaking anxiety, or glossophobia, affects about 73% of the population. The fear is so great that many people just avoid it like the seafood section of a buffet. That would be a mistake. Various studies show that unpolished or nonexistent public speaking skills can cost you promotions and raises. And besides, wouldn’t it feel better to conquer that fear rather than surrender to it? I’m going to cover some strategies for doing just that, along with some speaking tips. A Jackie Story But first, let’s get back to my story. On the night in question, in March of this year, I was delivering a...

Data breaches happen to companies and organizations all the time. The most recent, a data breach at Capital One, left as many as 100 million customers wondering whether their personal and financial information was compromised. Data breaches like this one make a serious dent in the credibility and trustworthiness of businesses and firms, even large ones like Capital One. Other financial institutions like J.P. Morgan Chase, Equifax and Scottrade have all been victims of cyberattacks. So, what can firms in the financial services world do better to protect their businesses and their clients’ personal information? It starts with understanding what’s at stake. Ramifications To Businesses The cost of a data breach has risen 12% globally over the past five years and now costs $3.92 million on average, according to a Security Today study. These rising expenses reflect the multiyear financial impact of breaches, increased regulation and the complex process of resolving criminal attacks. The financial consequences of a data breach can be particularly severe for small-to-midsize businesses. According to the study, companies with fewer than 500 employees suffered losses of more than $2.5 million on average — a potentially crippling amount for small businesses, which typically earn $50 million or...

Paid leave benefits have become infinitely more complex to understand because of wildly varying policies across municipalities, counties and states. Because of this variance, understanding and building the right amount of paid leave coverage for your clients’ employees can prove challenging, but ultimately crucial to ensure employee health and happiness. With a patchwork of policies to navigate, brokers have to provide guidance on the right mix of benefits while staying compliant with current laws. Although most employers offer a baseline of traditional paid leave benefits, such as paid time off and short-term disability, additional benefits can give employers the leg up they need to attract and retain top talent. Workers’ individual and family needs continue to evolve, and more employees than ever are using paid time off for things like taking care of a newborn or an elderly family member. As a result, employers and employees are starting to think about benefits differently. By sorting through the policy noise and understanding all available options, you can help your clients select the right components of a paid leave benefits program while staying competitive and compliant with current laws. Being A Resource Having a solid understanding of current paid leave benefits trends...

A not-so-funny thing happens to many Americans on the way to retirement — they save and accumulate money for retirement, only to realize that when they do get ready to retire, they’re not sure that their saved money will last. Unfortunately, many retirement savers have been conditioned to think only about saving a magic lump sum number from which they can start withdrawing money each year after they retire. Little attention is paid to calculating how much actual income they’ll need each month to live on and if that money will last throughout retirement. The Protected Lifetime Income Index study, a recent survey of 3,119 adults by the Alliance for Lifetime Income, shows that a mere 28% of non-retired Americans have made an effort to determine their likely monthly income needs in retirement —perhaps the single most important thing people should be planning for. Even among those closest to or in retirement — Americans between 55 and 74 years of age — only 43% have made such a calculation.If people don’t know what they’ll need, how will they know if they’ve saved enough to last throughout life? It’s no wonder that the survey showed 80% of us are anxious that...

The insurance industry has consistently been confounded by how to reach the millennial generation. Consisting of those born (roughly) between the mid-1980s and the late 1990s, this is the generation that grew up just as the internet was exploding on the scene. It’s also a generation that’s highly skeptical of many of the traditional business tactics the insurance industry employs. Part of the difficulty with selling insurance to millennials has to do with this generation’s very real feelings of financial insecurity. A recent Wall Street Journal article points out that millennials are behind in key areas versus previous generations, such as income, homeownership and starting families. Because the generation came into adulthood just as the economy turned south from the housing market crash, many millennials feel financially insecure. That financial insecurity ultimately leads to less spending on anything that may seem unnecessary in the short term, especially insurance products. Still, it’s possible to get millennials to understand the value of insurance products, or the need for secure retirement planning. There are simple, non-intrusive ways to approach millennials on why certain insurance products and financial planning are necessary, and to help them understand how such purchases can be made affordable. Understanding...

David Birnbaum is annoyed. He’s not angry or emotional and certainly not losing his cool, but the veteran consumer advocate is definitely annoyed with how this particular conference call on insurance disclosures is going. An executive with the American Council of Life Insurers is taking a combative stance on issues raised by the Center for Economic Justice, the organization Birnbaum heads. The bespectacled, amiable Birnbaum, known to all as “Birny,” responds with an uncharacteristically edgy tone. “We appreciate the vigor in which ACLI is presenting its views,” he says calmly. “Unfortunately, in this instance, it’s incorrect on the points that it brings forth.” A quick vote is taken on an ACLI proposal to combine two disclosure documents and it is shot down. Birnbaum’s position carries the call.It’s a win for Birnbaum — a small win, but a win nonetheless. Twenty years ago, Birnbaum left the regulator side of insurance to fight for consumers. He takes wins wherever he can find them. Read the original article at InsuranceNewsNetMagazine.com