June 6, 2018 07:00
Disability insurance is a product that a good number of advisors, not specialized are hesitant to sell.
First, it is difficult to manage the underwriting of conventional products. Then, more applicants are rejected or subject to a higher premium than in the case of sales of life insurance ordinary.
However, the products simplified are gaining ground. Thus more and more advisors can now take advantage of the opportunity to cross-sell by offering disability insurance in the ever-increasing number of customers with no disability plan at work.
Neil Paton, president and ceo of The Edge Benefits, said that a large number of disability insurance products traditional have seen the light of day while the agencies of a career invested in agents trained specifically to sell this product. “When we created the products accessible today, it was in a world where people assigned specifically to this task were selling the product. They were trained to sell disability insurance. It must be acknowledged that they excelled, ” he said. The problem is that when the agencies career have disappeared, their sales teams specialized have done the same. Unfortunately, the complexity of the product, it has remained. “
Because of this complexity that compels the purchasers to take account of the mortality, injury, disease, and the financial situation of a client, what are some agents that specialize in the sale of these products.
A tradition of specialty
“Any time, the market for disability insurance is somehow found in the hands of a few councillors only. They make a specialty, and show strong volumes, ” said David Stewart, president and chief operations officer of agency services management and general of the Ontario region of the Group’s financial Horizons. Disability insurance requires additional skills on the part of the adviser. The process of subscriptions is a little more complex. “
To get more advisors to sell the product, the company of Neil Paton has established partnerships with six officers in general over the past year, in order to create a strategic alliance in the field of distribution. These companies sell disability insurance products simplified exclusive to The Edge.
“The Edge is different from most of the other companies that have products to offer, says Jim Virtue, president and chief executive officer of Solutions PPI. In the background, they have a whole new approach to distribution. Most of the companies are going to go and do business with 20, 30, even 40 general agents. Them, they have decided to focus on the five major signs and having a relationship is much more deep and meaningful with them. “
Among the companies to offer products at simplified issue “for blue-collar workers” include PPI Solutions, Financial HUB, financial Group Horizons, insurance Network IDC Worldsource, Customplan Financial Advisors and Bridgeforce Financial Group.
Neil Paton explains that he wishes that a greater number of advisors to systematically ask their customers if they have a group insurance plan and whether their plan includes coverage in case of disability. “Our advisors who are most successful these days are often those who have learned to ask these questions. They pose whenever they see a customer, ” he said. We are in the process of trying to change the way in which the living benefits are offered on the market. It is exciting, but we have bread on the board. This is another way to try to reach those people that traditional models can not currently be used. “
According to a recent study conducted by RBC Insurance, the advisers interested to sell disability insurance products could be found in front of a market that is surprisingly untapped. RBC found that the number of Canadians who takes advantage of disability insurance through their jobs has declined sharply.
A necessary protection
The bank says that only 48 % of the respondents had a protection sponsored by their employer, compared to 57 % in 2015. Among the respondents without protection, 35 % had not group insurance or disability coverage available at work, 25 % were working part-time on contract and were not entitled to protection, while 22 % were self-employed or freelancers.
Despite this trend, David Stewart points out that the sales of disability insurance are currently relatively stable and constant. “Our total share of the disability market is not decreasing, but it does not increase in percentage. The product offered by The Edge wins, certainly, the field on us, because it is the subject of a subscription simplified. It is a product for blue-collar workers – not a product with a sharp tip, designed for professionals such as a lawyer or an accountant. These products of highest quality also require a lot more precision at the time of purchase. On the side of the mid-market, we are able to make sales because we do not add a lot of complexity to the whole. ”