NU Online News Service, May 30, 2003, 12:08 p.m. EDT – UnumProvident Corp., Chattanooga, Tenn., says it will be moving away from providing field-office support for sales of true individual disability insurance and true individual long-term care insurance.
UnumProvident also will emphasize distribution of individual disability and LTC products through its primary field broker network and shift away from dependence on a “few specialized managing general agency agreements,” the company says.
UnumProvident plans to support the sale of individual products through a special unit at the home office.
UnumProvident says it will continue to provide field support for “multi-life” cases, or efforts to sell multiple individual disability insurance policies and multiple individual LTC insurance policies through the worksite.
UnumProvident predicts that the changes in its individual-product distribution strategy will eliminate about 50 jobs, but it says it expects to find new positions for many of the people who now hold those jobs.
UnumProvident says it is changing its individual-product distribution strategy because it is having better luck with multi-life sales than with true individual sales.
Multi-life cases accounted for 73% of the individual disability insurance business written by UnumProvident during the first quarter, the company reports.
Reducing field support for individual sales should help UnumProvident cut costs and focus more on worksite sales, the company says.