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May 08, 2024 at 02:38 AM
What You Need to Know
- Most clients are in a hurry.
- Selling a life insurance policy can take months.
- The author says the firms in the life settlement sector can do better.
In the early 1990s, as the life settlement industry was just beginning to emerge, United Parcel Service introduced its iconic slogan, “Moving at the Speed of Business.”
This phrase, though initially aimed at securing more commercial shipping work, inadvertently captured the essence of the business landscape at the time — an environment where speed was becoming increasingly critical.
Fast forward to today, and the urgency for businesses to operate swiftly has only intensified.
However, it appears that a segment of the financial services sector, notably the life insurance settlement industry, has lagged, operating more at “the speed of molasses” than at the pace of contemporary business.
The Need for Speed and Efficiency
In today’s fast-paced world, businesses across various sectors have adapted to meet the demands for speed and efficiency.
From instant online quotes for health, life and commercial insurance to the rapid responses expected in sectors like banking and automobile sales, speed and efficiency have become the benchmarks.
Yet, the life insurance settlement industry, now roughly 35 years old, seems to be an outlier in this trend.
Reports from agents, advisors, and clients indicate a disconcertingly slow process, with weeks needed for a price quote and months for closing a transaction.
This sluggishness not only costs opportunities but also does a disservice to clients who have come to expect swift and reliable services across other areas of their financial dealings.
Client Expectations and Industry Stagnation
The gap between client expectations and industry performance has never been more evident.
In a digital age where consumers can receive loan offers or car purchase quotes almost instantaneously, the expectation for quick service delivery has permeated every aspect of financial services.
The life insurance settlement industry’s failure to meet these expectations not only frustrates clients but also risks pushing them towards alternatives that offer more prompt responses.
The Path Forward: Embracing Change
The life insurance settlement industry must confront its inefficiencies head-on by adopting a more agile approach.
The introduction of streamlined processes that allow for the rapid appraisal of life insurance policies, aiming for turnaround times as short as 48 hours or even less, is a step in the right direction.
While ambitious, the goal to reduce these time frames to hours or even minutes is not unfounded but a necessary evolution to stay relevant and competitive.
However, achieving this level of efficiency is not without its challenges.
