Insurable Interest Canadian Insurance Blog

Benefits include improved efficiency of operations, functional capabilities, data management, and efficiencies through automation Novarica Profiles 10 Vendor Solutions Boston, MA (July 16, 2019) – The replacement of distribution/compensation management (DCM) systems can be a strategic move on the part of insurers to decouple capabilities from core policy administration systems as a mechanism for risk mitigation in large modernization projects. Key capabilities that insurers are looking for include “straight-through appointment” capabilities, producer management analytics, mobile support, and the use of CRM solutions. Additionally, there is growing interest by P/C insurers in DCM products. In its latest Novarica Market Navigator, Distribution/Compensation Management Systems, research and advisory firm Novarica provides an overview of the available stand-alone distribution and compensation management systems currently available to US insurers, as well as detailed profiles of 10 vendor solutions “For insurance carriers looking to maximize top-line growth and bottom-line earnings, the distribution and compensation (more than commissions) space is an area of increasing importance for overall comprehension and strategic investment,” said Chuck Gomez and Deb Culliton, Vice Presidents of Research and Consulting and authors of the report. “Insurers have an increasingly rich vendor market to select from when considering providers of distribution/compensation management solutions. Modern solutions...

Flexibility and customization in benefits are key to improving outcomes in personal and professional aspects of daily life 80% of working Canadians report their overall wellbeing would improve if offered a personalized wellness program through their employer 70% of working Canadians with group or private insurance coverage rank their overall wellbeing as excellent or good vs. 59% of those without any type of insurance coverage at all Over half of working Canadians (53%) find health care spending accounts to be most important in insurance coverage when looking beyond traditional benefits Toronto, ON (July 16, 2019) – Wellbeing in the workplace is increasingly important, with good employee health and happiness increasingly linked to better performance and productivity. In fact, according to a recent RBC Insurance poll, the majority of working Canadians (80 per cent) report that their overall wellbeing would improve if their employer were to offer a personalized wellness program that is customized to an individual’s specific wellness and health related interests and goals. The poll also revealed that more than nine in ten working Canadians (94 per cent) are more likely to work for an employer that cares about their overall health and wellbeing. Other aspects of daily life...

By Stephen Applebaum, Insurance Solutions Group — The thought of a major insurance company, and its brand, disappearing from the market seems impossible to comprehend and more like the stuff of an attention-grabbing headline. But that’s probably what everyone once thought about Atari, Commodore, Kodak, Nokia, Xerox, Polaroid, Blockbuster, The Sharper Image, Enron, Yahoo, Blackberry, DeLorean, Radio Shack, Motorola, Toys ‘R’ Us, Tower Records, HMV, Palm, AOL, Compaq, Borders, Circuit City, Pan Am, Netscape, Nortel – and now Sears. As I was reviewing the NAIC 2018 insurance industry rankings and market share, I could not help but notice that some significant trends were accelerating. In the private passenger auto insurance line of business, Geico has overtaken Allstate to take the #2 spot with a 13.4% market share and continues to close in on State Farm whose share has dropped to 17%.  In fact, Geico has publicly stated its intention to overtake State Farm in the near future. Now this does not mean that State Farm or Allstate are at risk of going out of business anytime soon, but it does underscore the power of market trends that could over the longer term displace carriers who are not paying attention. Consolidation...

Martha Porado  | July 17, 2019 Support staff for the Prairie South School Division in Moose Jaw, Sask. have voted overwhelmingly in favour of job action, up to a full withdrawal of services, when the school year starts again. The staff, members of the Canadian Union of Public Employees 5512 chapter, object to their employer’s attempt to remove a long-service recognition benefit that provides employees with payment for 50 per cent of their unused sick leave, up to a maximum of 80 days upon retirement. Under the current benefit, employees can see a maximum of between $7,000 to just over $14,000 depending on their wages, according to Dave Stevenson, a national representative for the CUPE. “Now, we don’t know how much sick leave anybody has, so that benefit could be zero as well.”  Read: Brunswick Smelter workers to vote on strike over pension, benefits issues Following the vote, the school board has proposed replacing the former retirement benefit with one that totals 10 per cent of annual salary, up to a maximum of $6,000, but only for permanent employees. “Our current benefit, we believe, applies to everybody, including casuals; however, the employer disagrees with us. The language says, ‘any employee,’ and what their new language says is, ‘only permanent employees,’” says Stevenson. “Because most of...

Bob Dylan’s 1964 song, “The Times They Are A-Changin,’” is an iconic song that has long signaled that the world around us is in constant flux. Protesters and social change groups have used the song as a rallying cry, while others have used it to celebrate necessary and significant events. The song has been licensed for advertising messages and movie themes. Who could have predicted 55 years ago that the lyrics would live on and mean so much for so many? While the world has dramatically changed, the meaning of the lyrics still reflect Dylan’s prophetic insights. It is an appropriate song for us to reflect upon as we face the world of change in our business. Consumer buying preferences, attitudes and understanding of what life insurance can bring to the family are different now. Thanks to the internet and technology, consumers have many ways to learn about and purchase life insurance and other financial products. Competition for our share of the consumer’s attention has increased and other financial commitments have taken priority over purchasing life insurance or saving for retirement. LIMRA research tells us that the number of policies written every year is at an all-time low. Yet nearly...

In this fast-paced insurance industry, it is important for experienced advisors and new advisors craving success to establish a work system that includes recording and reporting their daily activities. If you want to make every year better than the previous one, recordkeeping combined with regular reporting to an assistant and work peers can produce exponential sales and success. The tried-and-true systems put in place by industry giants should be passed along to the next generation entering the field or looking to improve their results. Find A System That Works I firmly believe that Al Granum gave us one of the best blueprints for success. At an MDRT Annual Meeting, Granum and his team of six advisors explained their scientific research to develop a sound system to sell cash value life insurance. For 10 years, his team tracked 50,000 prospects and discovered the 10-3-1 formula. If advisors accurately track their efforts, they will discover that, on average, 10 prospects and three fact-finding interviews with prospects equal one sale. What is noteworthy is that it does not matter whether an advisor is 25 or 55 years old, new or experienced; they arrive at the same results. Granum changed the focus from sales...

“You are not alone.” This is the message that was most recently brought home to me by a somewhat difficult case I had to deal with. Brokers are typically on their own. But am I really on my own? Let me tell you  about a recent case and how my relationships helped me earn business. I had a prospect — a business owner —who was about to go on Medicare. I found that he had some expensive prescriptions and an allergy to the inexpensive stuff.  I set out  to find him affordable coverage. After a bit of searching my routine options, I knew this person would be out of luck with the standard products.  This is where things get interesting. After 15 years in the business, I’d cultivated a group of people in the industry I can call on to help move my thinking outside the norms. Napoleon Hill called this group of people the “mastermind.” A mastermind, in Hill’s definition is, “the coordination of knowledge and effort of two or more people who work toward a definite purpose, in the spirit of harmony.”  I had help. I had people I trusted whom I could call for advice about the...

During a discovery meeting with a prospect, you are probably already doing most of the following: asking open-ended questions, actively listening, maintaining good eye contact and asking follow-up questions. The questions you’re asking are likely the same questions you have asked hundreds of times before as you’ve met with prospects. But although these discovery meetings are routine for you, your prospects are in uncharted territory. They will be trying to answer your questions thoughtfully and accurately. In return, they will expect you to be actively engaged, and they will catch on quickly if you’re indifferent. What more can you do to help keep your curiosity genuine, and get open and honest responses when meeting with prospects? Here are four ways to use more of your presence to help keep you and your prospects engaged. Know yourself. Improving your ability to positively influence the emotional climate of a discovery meeting begins with increasing your understanding of how you show up in different selling situations. Are you able to readily show up with ease and poise, or do you tend toward becoming more formal and “stiffer” than the occasion demands? If the latter is your tendency, consciously remind yourself to relax and...

When 73% of clients say they like the idea of adding a source of protected monthly income — on top of Social Security — to their retirement income plan, registered investment advisors pay attention. As traditional pension plans become increasingly rare and an uncertain rate environment jeopardizes the value of many fixed-income investments, clients will likely continue to demand more — and better — guaranteed income strategies. It may be time, then, for RIAs to take a fresh look at integrating annuities into their financial plans for pre-retirees and retirees. In fact, a 2018 survey by Global Atlantic Financial Group revealed that 56% of financial professionals believe that annuities are an important part of retirement planning. As investment research firm Morningstar noted at the end of 2017, $2 trillion was invested in variable annuity products. And LIMRA reported sales of fee-based variable annuities jumped 43% year-over-year to $800 million in the third quarter of 2018. Perceived Obstacles To Using Annuities For years, however, many RIAs have steered clear of annuities because the products were seen as too expensive or complicated. Commission-free options for fee-only RIAs have been introduced as one possible solution to the cost issue and they are often...

A company can’t run on two-thirds of its workforce. Unfortunately, due to disability related leaves, some companies are forced to do that. A recent study conducted by The Standard showed that one employee, on average, could spend as many as 112 days a year away from work on disability leave due to mental health conditions. Employees with chronic conditions are out of work an average of 64 days a year, and the average leave time for all types of disability claims isn’t much shorter — 59 days. Although these numbers don’t look promising for employers, there is a clear solution: a strong absence and disability management program. As a benefits broker, you have both an opportunity and a responsibility to advise human resource decision-makers about programs that improve employee attendance and bring them back to work. By doing so, you’re helping employers be fundamentally more productive. Addressing A Longstanding Issue Disability and absence are often invisible drains on productivity and overall workforce performance, in the sense that employees who are out of work on disability can quickly turn “out of sight, out of mind” for employers. The Standard’s Absence and Disability Readiness Index states that only one in four employers...