Bill Broich has been trying to help life insurance and annuity agents get consumers' attention for 35 years.
The co-owner of the Tacoma, Washington-based marketing firm now known as Annuity.com has connected clients with newspapers, radio shows, websites and just about every other medium other than chiseled stone.
He is worried about the impact of agents' current dependence on sales leads generated by paid services on the future of live-human advice.
Plenty of new lead-generation systems have appeared, "but most are are a waste of money and time," Broich said.
Now, he said, agents will have to face their prospecting weakness, the rise of artificial intelligence, and, possibly, competition from the field marketing organizations and independent marketing organizations that try to serve as the buffer between the insurers and the retail agents.
Broich answered questions about where agents are going and why via email. The interview has been edited:
THINKADVISOR: What do you think about the current hiring and firing climate for life insurance and annuity agents in general?
BILL BROICH: I think the agent age is climbing, and fewer agents are joining. It seems that most big firms are trying to add more agents (such as Prudential), but my guess is that, at most companies, the success rate is low.
In the annuity sector, the prime target for recruiting agents is $1 million to $5 million in past year's production. The competition for that group is intense.
How has the agent recruiting climate changed since before COVID came along?
It's been strange: Agents who were forced into the Zoom selling system seem to have mostly remained there.
This has hurt the segment and made it difficult for new hires to be found.
It has sort of turned into an underground system.
Every FMO/IMO seems to be stealing agents from the others. Not many new ideas have been developed for finding new agents.
What do you think about agents' role? Will it change?
I am very negative about the agent sector for the coming years.
I believe insurance companies will lower the compensation for the writing agent and transfer more comp to the IMO.
Companies will focus more and more on the IMO producing products and finding agents. This will lead to a range war between IMOs.
What forces will shape recruiting over the long term?
My bet is AI will produce many systems to emulate the transactional side and slowly push the agent from the center to the side. I am very fearful of what is going to happen.
What kinds of firms seem to be having the best success with getting the best people, and why?
Firms that provide or greatly assist in marketing and building systems that agents can use and run themselves. Why? Because it's all about leads.
What agents seem to be having the most success, and why?
Agents who adopt visibility into their marketing are the ones who are going to survive and prosper.
What advice do you have for agents who are looking for new opportunities?
Northwestern Mutual defined the industry and its marketing in the 1950s, when they created the first data-driven marketing system, the One Card System.
If agents do not make themselves visible and build a relationship marketing system, they have a limited future.
Look back at what Northwestern Mutual did then and adapt that philosophy to fit with what's out there today.
What is the future of insurance and investment advice, and how will that affect where agents go?
Will large direct-to-consumer companies expand into the cash-flow-rich offering that the successful annuity business offers? My answer is: Yes.
With an aging agent workforce (62, I think), how will the industry respond to a $1 trillion sales opportunity in the future? Who will be selling what?
Visibility is the key. How would an agent achieve that?
Bill Broich. Credit: Annuity.com
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