Multiple distribution channels need different branding strategies because of different buying preferences among consumers, said a speaker at the annual meeting of the National Association of Variable Annuities here.
The discussion was one of several that addressed reaching out to advisors and understanding the nuances among them in order to accomplish this goal.
During the discussion on distribution channels, Hugh McHaffie, a senior vice president with MetLife, Long Island City, said an effective way to reach advisors can be to brand a product by distribution channels. Multiple distribution channels can mitigate risk for a company, he added.
Some of the differences among distribution channels that McHaffie cited are: average contract size, persistency, share class structure reflecting needs, and yields and liquidity on fixed accounts.
Pricing factors, according to McHaffie, also differ by distribution channel. And while factors such as distribution expenses are similar between the career and independent system, he said that for the career system, average deposits are lower and persistency, higher.
There are significant differences between the 2 distribution channels in areas such as share class, rider protection and fixed account utilization, he added.