Prescription For DI Sales Success In A Down Economy
The economy is down with little hope for a speedy recovery. Consumer confidence is at an all-time low. Unemployment rates are on the rise. As you may expect, this business has hit disability insurers hard with sharp increases in claim rates, flat to decreased earnings, and loss of business caused by clients searching for more affordable plans.
Its rough, but insurance carriers–and producers–can still pull in good profits. Whats needed is for marketers to expand their traditional view of insurance to include disability and their understanding of the characteristics of healthy blocks of business.
What Your Peers Are Reading
The losses in the insurance industry have been a long time coming. Years of profitable business resulted in the proliferation of rich insurance plans at affordable premium levels. Carriers could afford to offer insurance plans that contained plenty of benefits because the likelihood of policyholders filing a claim was much lower than it is today.
With claim rates up, however, these rich disability plans are no longer economical. When carriers need to recoup losses through premium increases, they first look toward these richer plans and also plans with high claims rates. Employers and other policyholders often cannot sustain these price increases, so they seek new plans that are less rich and more affordable.
In such a market, producers and their carriers should be poised to offer appealing, affordable options. This will help retain clients long term.
The question is, how to do this? Here are some suggestions. They are based on common characteristics of the most profitable blocks of business as revealed by recent studies, including the Disability Market Survey from Disability RMS. Keeping these in mind will help you develop the right strategy for the biggest profits.