Career Agents, LTC Seen As
Growth Areas: NAILBA Members
Brokerage general agencies say growth over the next 2 years will be most driven by career agents and sales of long term care insurance, according to a study conducted by the National Association of Independent Life Brokerage Agencies, Fairfax, Va.
The study, done in October 2003, was an internal look at what members thought the business would look like going forward, says Joseph Normandy, executive director.
Following career agents, CPAs/banks, independent broker-dealers and wirehouse broker-dealers were named as distribution channels that were seen as most effective in growing business over the next 24 months.
Disability income, variable life insurance and critical illness insurance were also named by NAILBA members as products that will be most important over the next 24 months, according to the NAILBA survey.
Ninety-seven percent of NAILBA members said independent agents were their primary customers. Next came brokerage houses at 28%; then CPAs, 24%; banks, 22%; registered representatives, 4.5%; and, property-casualty agencies, 4.5%, the survey found. Multiple responses were provided by some respondents.
In order to best offer product, NAILBA members listed services that are important to their agents. Case management ranked the highest with 91% citing this as extremely important.