29 minute read
The Watchdog
We are all protectors
- Rich Bielen, President and CEO Protective
Fellow protectors,
Protective was founded on an idea greater than simply providing reliable products. Since 1907, we’ve held strong to our commitment to doing what’s right by those we serve, standing by their sides and delivering on our promises. While our values and dedication to our customers are responsible for setting us apart, our mission is to help more people achieve the sense of protection and security they deserve. Of course, to achieve such a critical goal requires a brand that will inspire growth and future momentum – a brand that can help drive awareness and stronger connections. Our new brand capitalizes on our strengths, amplifes all the things that make us who we are, and allows employees, partners, and customers to see themselves as part of the Protective story. “Because we’re all protectors” is why we do what we do. It highlights the values we share with our customers, colleagues, communities and business partners. It’s why we put every protector at the heart of Protective. This concept was true to who we were at our founding, and it remains true today. It also represents the start of an exciting new era for our company. Our new brand is more than just a logo and visual identity. It defnes, unifes and simplifes what we deliver and how people experience us. Our new brand will help us better engage with our many audiences and enable us to accelerate future growth together – to help more people become protectors. And while we have a new look, we’re the same Protective that’s been putting people frst since day one – from our fnancial professionals to our end clients. What has changed is our increased strength within the industry and assortment of solutions we work tirelessly to ofer. I invite you to visit protective.com/protectors to see for yourself how you can be part of Protective’s story and better serve your clients. Because we’re all protectors.
Rich Bielen
President and CEO Protective Life Corporation
Workers Concerned About Finances, But Bosses Don’t Get It
65%
Nearly two-thirds of small-business owners are worried about the health of their businesses as they struggle to find and retain workers, according to a MetLife report.
The concern is greater for businesses with 20 or more employees, as 75% of those owners say they are worried about the pandemic’s effect, according to a poll taken in the second quarter, before the effect of the delta variant escalated.
While employers were most worried about the virus itself, 87% of employees
said finances were their top concern. That concern has employees most worried about their continued financial well-being, with 61% saying that was
their chief concern, followed by mental, social and physical health. About a quarter of the respondents said their well-being worsened in the past year.
Although employers might not be in sync with employee concerns, they know well-being is a significant issue, with 68% of employers predicting that employee well-being will have the greatest impact on the workplace of the future.
401(K) BALANCES SEE RECORD GROWTH
A rising stock market, combined with a trend toward people putting more money away for retirement, led to record 401(k) balance growth in the second quarter, Fidelity Investments reported.
The average 401(k) plan balance grew 24% to a record $129,300 in the second quarter from a year earlier. However, the median balance, a better measure of the typical plan size, was $29,000, up 22% from a year earlier.
e stock market deserves much of the credit for plan growth, with 85% of the balances increased due to market performance. However, don’t discredit workers’ ability to sock away more of their pay. e average employee funneled 9.3% of their pay into their 401(k) in the second quarter, a record high, Fidelity said. Meanwhile, 18.2% of baby boomers with a 401(k) made a “catch-up” contribution in the second quarter, also a new high.
A PRODUCTIVITY BOOM COULD BE ON THE HORIZON
The U.S. is experiencing a surge in worker productivity that could rival that of the tech boom 20 years ago — maybe. Companies and customers are embracing new technologies, making it easier for Americans to produce more with fewer workers. The result is what economists say could turn into a boom with wide-ranging benefits for years to come.
Conditions are ripe for productivity to remain high for years, according to analysts from Goldman Sachs and the McKinsey Global Institute. As policymakers run the economy hot, there’s heavy demand for products and services. At the same time, a worker shortage forces companies to innovate even more as they struggle to find enough employees to fill a record 10 million job openings. If a robot can do someone’s job, companies are trying it.
Although many factors are fueling productivity, one of the most notable is the work-from-home trend.
New research finds teleworking could add a 5% boost to productivity, mainly
QUOTABLE
Today, we see little evidence of wage increases that might threaten excessive inflation.
— Federal Reserve Chairman Jerome Powell
because workers save time not commuting to the o ce and use that time to work.
FED: NO GOING BACK TO PREPANDEMIC ECONOMY
The U.S. economy has been permanently changed by the COVID-19 pandemic, and it is important that the Federal Reserve adapt to those changes. So said Fed chair Jerome Powell at a recent virtual town hall.
Powell said that it is not yet clear whether the virus’s delta variant will have further impact on the economy, but the country has already seen significant changes since the pandemic began shutting most sectors of the economy down in March 2020. Those changes range
from the increase in remote work to restaurants o ering more takeout meals to real estate agents learning to show homes virtually, he noted.
Many companies have already made large investments in technology to adapt to the challenges that the pandemic has presented.
He added that employers’ heavy investment in new technology means there will be more jobs in the future associated with maintaining that technology, but there also will be potential job losses in industries focused on in-person contact. He said there are millions of people who have lost service-sector jobs, remain out of work and need to be supported.
DID YOU KNOW ?
Actor Steven Seagal agreed to pay more than $300,000 in fines for unlawfully
Source: LIMRAtouting a security by failing to disclose he had been paid for his endorsement.
Aclassic episode of the TV comedy I Love Lucy depicted Lucy and her sidekick, Ethel, fumbling hilariously as they tried to wrap candies that continued to stream along a fast-moving conveyor belt. e
faster they wrapped the chocolates, the more confections came speeding toward them until the two women became overwhelmed and handled the situation as only Lucy and Ethel could.
When Mark Squires thinks about the wave of consumers reaching Medicare age, he is reminded of the candy-wrapping scene. In his vision, the candies represent those Medicareeligible individuals — and they just keep coming.
Nearly 37 million baby boomers will turn 65 over the next decade, according to the U.S. Census Bureau, with 10,000 boomers hitting that landmark birthday every day from now until 2030.
Boomers approaching their 65th birthday face a bewildering array of choices when selecting a Medicare plan. Should they buy a Medicare supplement? Or is that zero-premium Medicare Advantage plan that some celebrity is hawking on TV a better deal? Will their doctors and local hospital be covered under the plan they select? How much will they end up paying out of pocket?
Not only are more people reaching Medicare age, but they also have more plans from which to choose, especially if they select Medicare Advantage. e number of Medicare Advantage plans available increased for 2021 to the highest it’s ever been, with more than 4,800 plans available nationwide. e majority of beneficiaries have at least one zero-premium plan available to them, and the average enrollee can select from among 33 plans in 2021.
In 2020, nearly four in 10 (39%) of all Medicare beneficiaries — 24.1 million people out of 62 million Medicare beneficiaries overall — were enrolled in Medicare Advantage plans; this rate has steadily increased over time since the early 2000s. Between 2019 and 2020, total Medicare Advantage enrollment grew by about 2.1 million beneficiaries, or 9% — nearly the same growth rate as the prior year. at’s according to Kaiser Family Foundation. e Congressional Budget Office projects that the share of all Medicare beneficiaries enrolled in Medicare Advantage plans will rise to about 51% by 2030.
As more Americans reach Medicare age, more of them look to advisors such as Squires to help them make the best decision to cover their health care needs.
Squires brands himself as e Medicare Whisperer, and Medicare makes up a big part of his practice. As president of Wise Choices Financial in Independence, Mo.,
Squires has become somewhat of a local celebrity, discussing Medicare on radio talk shows and in a series of YouTube videos. He has seen the Medicare market come a long way from the days when he sold Part D coverage from a table inside a local supermarket.
“I distinctly remember my first day. I was sitting at a grocery store, and instead of putting me back by the pharmacy, they put me right in front of the front door. It was snowing and windy in Kansas City. Every time the doors opened, my sign blew over. And I spent most of my morning answering more questions about the pumpkin rolls on display behind me than I did about what I was selling,” he recalled.
Eventually, he started advising people who were disabled, under 65 years old and on Medicare. And he discovered his passion for helping others.
“It gave me an entirely new perspective — not on the business, but on life,” he said. “I was now in a position where I was helping people. I was changing lives. And that for me became part of the mission. at is what we do every day — we help people, we get paid to do it, and that’s great.”
Squires continued to learn more about Medicare. Clients started calling him the Medicare Whisperer, and he trademarked the name. Although his practice also encompasses life insurance and longterm care insurance, his Medicare business continues to grow to the point where it has increased about 130% over last year. e growth of Medicare Advantage and premium increases on Medicare supplement plans have been among the biggest changes Squires said he has seen during his time in the business.
“Medicare Advantage was in its infancy back when I first started selling Part D plans,” he said. “But now the federal government has put more resources into swaying people toward the Medicare Advantage product.”
“We’ve seen a lot of our older clients who are on Medicare supplements seeing their premiums rise on Part F plans, so that also has been significant.”
But another change is the increase in competition for business. Carriers bombard consumers with direct mail, TV commercials and other advertising urging them to go to a call center and buy coverage. Advisors can cut through the clutter by offering consumers an opportunity to have their questions answered by an expert. And as in any other segment of insurance advice, tailoring a recommendation to the client’s individual needs is crucial.
“When we’re meeting with a client for the first time, we have no preconceived notions about what we’re going to recommend,” Squires said. “We want to know as much as we can about the client, we want to know about their life, what makes them tick, what’s their lifestyle, what do they want to do in retirement? And then we answer their questions and look at what’s most appropriate for this person in their circumstances.”
Squires
MORE FOCUS ON SOCIAL DETERMINANTS
Ritter Insurance Marketing in Harrisburg, Pa., is a field marketing organization that has focused on the senior market since 2005. Among the biggest changes in recent years has been an expansion of benefits offered by Medicare Ritter Advantage plans, said Craig Ritter, the company’s CEO.
“In the last three years, the Centers for Medicare and Medicaid Services has opened up these plans to include benefits
that are more aligned with social determinants of health,” he said. “We’re talking about things like access to nutrition, access to transportation — things that go beyond paying for surgery or paying for an office visit or paying for preventive tests. It’s addressing issues where people say, ‘OK, I have this great benefit, but I can’t get to the doctor because I’m homebound and I have no one to drive me.’
“So CMS is really focused a lot more on providing more flexibility to managed care plans to be able to address these other needs.”
Clients and advisors must look deeper into the benefits when selecting the right plan, Ritter said.
“It’s a bit more multidimensional now,” he said. “Does the plan have a caregiver benefit? Does the plan cover enhanced dental? Does the plan provide for transportation? ese are the considerations that agents need to make, and I think it’s one of the biggest changes agents need to deal with in recommending a good plan for their clients.” good bipartisan support. Both Democrats and Republicans have agreed that their constituents really like this program, it serves the Medicare population very well and it’s cost-effective. So it really has flourished in the last 10 years and continues to improve year over year.”
As for what 2021 is bringing to Medicare supplements, Ritter said, “We’ve seen increases in Medicare supplement premiums in the 4% to 6% range over the last three to five years. e products continue to be extremely competitive. Even with the growth in Medicare Advantage, there is still a large market for Medicare supplements.”
Ritter said that although fewer carriers are entering the Medicare market, those that already are in it have expanded the number of plans available for 2022.
For advisors who want to serve this market, “there’s as much of a need as ever,” Ritter said.
“If you look at the dynamics of the market, you have a market that’s growing organically at a double-digit rate every year,”
If you look at the dynamics of the market, you have a market that’s growing organically at a doubledigit rate every year. And you have that dynamic in place for the next decade. So you have some really powerful tailwinds.”
Two factors are driving these changes in Medicare Advantage plans, he said. One is a regulatory change that gave these plans more flexibility to offer innovative benefits. e other is increased federal funding that enables plans to offer more benefits.
“We’ve seen very good support from CMS,” he said. “Medicare Advantage is probably one of the few things that has he said. “And you have that dynamic in place for the next decade. So you have some really powerful tailwinds.”
Democrats in Congress are pushing for two major changes to Medicare as part of a multitrillion-dollar spending plan: lowering the eligibility age to 60 and adding coverage for dental, vision and hearing care.
“If Congress passes this bill, it will enhance some benefits and provide more
Insurance products issued by MINNESOTA LIFE INSURANCE COMPANY.
Insurance policy guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company. Please keep in mind that the primary reason to purchase a life insurance product is the death benefit. Life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender periods. Agreements may be subject to additional costs and restrictions. Agreements may not be available in all states or may exist under a different name in various states and may not be available in combination with other agreements. SecureCare may not be available in all states. Product features, including limitations and exclusions, may vary by state. SecureCare Universal Life Insurance includes the Acceleration for Long-Term Care Agreement. The Acceleration for Long-Term Care Agreement is a tax qualified long-term care agreement that covers care such as nursing care, home- and communitybased care, and informal care as defined in the agreement. This agreement provides for the payment of a monthly benefit for qualified long-term care services. This agreement is intended to provide federally tax qualified long-term care insurance benefits under Section 7702B of the Internal Revenue Code, as amended. However, due to uncertainty in the tax law, benefits paid under this agreement may be taxable. Please ensure that your clients consult a tax advisor regarding long-term care benefit payments, or when taking a loan or withdrawal from a life insurance contract. The death proceeds will be reduced by a long-term care or terminal illness benefit payment under this policy. This policy has exclusions, limitations and reduction of benefits, under which the policy may be continued in force or discontinued. For costs and complete details of the coverage, call or write your producer or Minnesota Life Insurance Company. These materials are for informational and educational purposes only and are not designed, or intended, to be applicable to any person’s individual circumstances. It should not be considered investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action. Securian Financial Group, and its affiliates, have a financial interest in the sale of their products. The purpose of this material is the solicitation of insurance. An insurance agent or company may contact you. Policy form numbers: ICC17-20103, 17-20103 and any state variations; ICC17-20111, 17-20111 and any state variations. Insurance products are issued by Minnesota Life Insurance Company in all states except New York. In New York, products are issued by Securian Life Insurance Company, a New York authorized insurer. Minnesota Life is not an authorized New York insurer and does not do insurance business in New York. Both companies are headquartered in St. Paul, MN. Product availability and features may vary by state. Each insurer is solely responsible for the financial obligations under the policies or contracts it issues. Securian Financial is the marketing name for Securian Financial Group, Inc., and its affiliates. Minnesota Life Insurance Company and Securian Life Insurance Company are affiliates of Securian Financial Group, Inc.
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funding to Medicare in terms of dental, vision and hearing, which in turn would provide more funding for Medicare Advantage,” Ritter said. “And that alone would increase the number of beneficiaries.”
Ritter also noted the growth of direct-to-consumer marketing by Medicare carriers and a greater use of call centers to enroll people in coverage. But he said advisors still have a role to play by providing a greater range of products and greater support to clients.
“By providing that kind of support to their customer, and going above and beyond for your clients to make sure that they have the right plan, then you’re getting referrals,” he said. “ en you’re able to build a reputation within your market and be successful.”
For advisors who may be late entering the Medicare market and concerned about whether they missed out on a major wave of potential clients hitting age 65, Ritter said it’s not too late.
“You didn’t miss the train. And there’s plenty of room on the train.”
PREVENTING DAMAGE
With all the decisions that a consumer faces in selecting a Medicare plan, it’s easy to make a decision that ends up costing them a fortune or — even worse — puts their health in jeopardy. That’s where Joanne Giardini-Russell comes in.
Giardini-Russell is owner and self-proclaimed “Medicare nerd” of Giardini Medicare in Brighton, Mich. She and her staff of fellow “nerds” have a practice devoted to helping consumers on the Medicare journey.
“When we did a survey, we found that our clients told us the most confusing thing about getting coverage was figuring out the difference between Medicare Advantage and Medicare supplement,” she said. “So I realized we had a lot of educating to do.”
She and her team produced a series of YouTube videos discussing the various Medicare options as well as the pros and cons of each. ey also produce a series
of webinars and have a coordinated communication campaign reaching out to clients and prospects. “Our business model is that we serve lots of credit unions, banks, financial planners and people like that. We’re kind of the arm that does their Medicare for their clients because they don’t have time to do it. And we get referrals from that as well.” ere can be costly consequences of choosing the wrong coverage. at’s what Giardini-Russell and her team attempt to prevent. “My daughter, Natalie, works with me, and she said the most imGiardini-Russell portant thing a new agent in this market has to realize is the damage you can do,” she said. “Your client can end up on the hook for thousands of dollars in out-of-pocket costs if they make the wrong decision. It’s your job to see that doesn’t happen.” Among the changes she has seen in the marketplace, the biggest recent change has been the way clients adapted to
Medicare Timeline
Medicare has been part of the American health care landscape for more than a half-century, as the program was implemented on July 1, 1966. Here are some significant dates and milestones in the Medicare program.
1937
U.S. Surgeon General Thomas Parran proposed that national health insurance first cover Social Security beneficiaries.
1945
President Harry Truman publicly lent his support to national health insurance after the Social Security Board called for beneficiary health insurance.
1965
Medicare and Medicaid were enacted as Title XVIII and Title XIX of the Social Security Act, providing hospital, posthospital extended care and home health coverage to almost all Americans aged 65 or older. At the time, seniors were the population group most likely to be living in poverty, and only about half had health insurance coverage.
To implement the Health Insurance for the Aged (Medicare) Act, the Social Security Administration was reorganized and the Bureau of Health Insurance was established on July 30, 1965. This bureau was responsible for the development of health insurance policy.
1966
More than 19 million people enrolled in Medicare by July 1 — the first day the program was implemented.
1972
Medicare eligibility was extended to individuals under age 65 with long-term disabilities or end-stage renal disease.
1980
Coverage of Medicare home health services was broadened. Medicare supplemental insurance, also called “Medigap,” was brought under federal oversight.
1983
Medicare established a hospice benefit as an option for terminally ill beneficiaries to receive all-inclusive care to relieve pain and manage symptoms in a home setting rather than an institutional setting.
1987
The Omnibus Budget Reconciliation Act of 1987 strengthened the protections for nursing home residents.
1988
The Medicare Catastrophic Coverage Act included the most significant changes since enactment of the Medicare program. The law improved hospital and skilled nursing facility benefits, authorized Medicare to cover mammography, and included an outpatient prescription drug benefit and a cap on patient liability.
COVID-19 restrictions. “Clients found they didn’t need to meet in a conference room. ey told us their preferred way of communicating is through email. ey like doing webinars. Let’s face it — people who are 65 years old have been on a computer for 25 years by now. So they are accustomed to doing things online.”
Even with Medicare and related coverage, older Americans are still facing out-of-pocket costs for health care. Giardini-Russell predicted that Congress will add a dental benefit to Medicare.
“In terms of Medicare, I think everything will get more expensive,” she said. “Especially the cost of prescription drugs. I see this perfect storm in health care, where people are spending $3,000, $4,000, $5,000 a year on medications, but they are living on only $32,000. ey can’t do it — something’s got to give. If we could come up with a maximum annual out of pocket for even $2,000 for prescriptions, that would be phenomenal.”
Giardini-Russell said she wishes the financial planning community would begin discussing Medicare with their clients long before they blow out the candles on their 65th birthday cake.
“You really should begin explaining this 15 years before they hit Medicare age,” she said. “Someone needs to talk with them about planning for their health care costs.”
Medicare enrollment is stressful for clients, she observed.
“Because it kind of coordinates with all those thoughts around retirement and your health, because you’re getting older and people do get sick and things happen. And you’re trying to make good decisions. It’s tough, and it’s stressful, but it’s important. So we break it down and help people learn it.”
Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents’ association and was an award-winning newspaper reporter and editor. Contact her at Susan.Rupe@innfeedback. com. Follow her on Twitter @INNsusan.
1989
The Medicare drug benefit and other enhancements of Medicare coverage in the Medicare Catastrophic Coverage Act were repealed after higher-income seniors protested new premiums. A new Medicare fee schedule for physician and other professional services, a resource-based relative value scale, replaced charge-based payments.
1990
Additional federal standards for Medicare supplemental insurance were enacted.
1995
The Social Security Administration became independent of the Department of Health and Human Services.
1997
The Balanced Budget Act established an array of new Medicare managed care and other private health plan choices for beneficiaries, o ered through a coordinated open enrollment process. The act also expanded education and information to help beneficiaries make informed choices about their health care, expanded benefits for preventive care, and slowed the rate of growth in Medicare spending, extending the life of the Medicare Trust Fund by 10 years.
1999
The first annual Medicare & You handbook was mailed to all Medicare beneficiary households.
2001
The Health Care Financing Administration was renamed the Centers for Medicare & Medicaid Services.
2003
The Medicare Prescription Drug, Improvement and Modernization Act made the most significant changes to Medicare since the program began. MMA created a new optional outpatient prescription drug benefit, e ective in 2006, provided through private health plans. The act also changed what was formerly known as Medicare+Choice plans to Medicare Advantage.
For the period prior to 2006, MMA created a temporary prescription discount card program. Beneficiaries with incomes less than 150% of the federal poverty level became eligible for subsidies under the new Part D prescription drug program. MMA also required beneficiaries with higher incomes to pay a greater share of the Part B premium beginning in 2007.
2006
Medicare prescription drug coverage (Part D) began for 39 million Medicare beneficiaries.
2010
The A ordable Care Act provided for expanded Medicare drug and preventive services benefits.
2021
As of 2021, more than 26 million Americans — 42% of all Medicare beneficiaries — were enrolled in Medicare Advantage plans.
North American Insurance Services’ president, Andy Dastur, CLU, CFP, has spent decades working in insurance. When the call to have his own business became too loud to ignore, he partnered with Eugene Woznicki to help build an unconventional health insurance marketing organization. He explains their unique culture in this Q&A. Andy Dastur
Q: Why do you call North American Insurance Services a “boutique” organization?
A: Much of our industry is controlled by Wall Street or insurance companies, and we’re not. When they talk about long term, they mean next quarter’s earnings. When we talk about long term, we are talking about multiple generations. Our agents are here because they’re trying to build something of value for themselves and their families. We feel like a boutique organization because of our own independence and because of the way
we nurture agents’ entrepreneurial spirit while providing as many great opportunities as possible
for their long-term goals. “I love the feeling of family at NAIS and the ability to sell all carriers with no limitations. The company’s innovative thinking and team concept are what keep it a step ahead of the competition and set it apart.”
– Mark K.
– Kevin R.
“Even though I run my own business and answer to myself, I have had the privilege and honor to be contracted under North American Insurance Services for the past four years. Their techniques for helping clients get coverage are like no other company I have seen. Andy’s amazing training and leadership took me from ground zero to a six- gure income in two years!” – Jacquie W.
Q: How do you provide these great opportunities?
A: We have four words that drive who we are and frame decisions. The frst two are “inspiring knowledge.” Not only do we want our agents to be the most educated, knowledgeable advisors in our industry, but also we strive to consistently inspire them with new solutions and ideas. All of our senior sales leadership are our top producers. I’m a producer too, and I do this because I truly like to help people. We have created a culture of sharing best practices. Every one
of our top producers wants to share what they are learning and how they got
to where they are. They’re the mentors, and they’re doing it because they get so much more in return. When anyone in our organization succeeds, we all celebrate. The other two words are “innovative solutions.” When we provide advice, we provide unique solutions on a customer-by-customer basis that they can’t fnd anywhere else. Our agents truly are advisors; they’re not just conducting “transactions.” While this may sound more challenging at frst, it actually becomes second nature, and it’s one of the key things our top producers pass on to newer agents.
Q: What does the future of North American Insurance Services look like?
A: Our future is bright because we bring something unique: our culture of sharing best practices and of helping consumers by providing more than just transactions. Diversifcation of our oferings is one of our most highly valued priorities as a company. Our portfolio includes the best insurance carrier partners in the industry. See what inspiring knowledge and innovative solutions can look like for your business. Learn more at NAISinspires.com.
Life Insurance Sales Growth Hits 38-Year High
Increased consumer demand continues to drive record life insurance sales. The first half of 2021 had the highest life insurance policy sales growth since 1983, according to LIMRA. In the first six months of 2021, the total number of policies sold increased 8% compared with the prior year.
36% of Americans said they planned to purchase life insurance this year.
Source: LIMRA
The second quarter of 2021 saw a 34-year high in life insurance premium, with a 21% increase, the largest year-over-year increase since the third quarter of 1987. For the first half of 2021, total premium increased 18% compared with the first six months of 2020.
Variable universal life new premium grew 69% compared with prior year results, representing the 15th consecutive quarter of premium increases. Whole life new premium sales jumped 25% in the second quarter while policy count increased 5% compared with the prior year. Whole life product sales experienced the largest growth in terms of absolute dollars and policies sold. Indexed UL new premium grew 20% in the second quarter, up 17% year-to-date.
COVID-19 DROVE LIFE SALES IN 2021
The COVID-19 pandemic was one of the biggest drivers — if not the biggest driver — of the insurance market in the last year and a half according to a recent survey taken on behalf of the Million Dollar Round Table. e survey revealed that 42% of Americans who acquired new insurance policies since March 2020 said the COVID-19 pandemic was a factor in their decision, higher than all other options.
Among those, more than half (51%) said it was the primary factor in their decision. Another 41% said it was a major factor in their decision.
Other reasons for acquiring new policies included wanting to provide for family (36%), a major life event (29%) and new personal concerns about potential future disability or long-term care needs (27%).
54% of Americans said that COVID-19 has made them more anxious about dying early.
Source: MDRT
NEW CEOS NAMED AT 2 CARRIERS
New leaders will be at the helm of two life insurance carriers.
Pacific Life announced that Darryl Button will become president and CEO
of Pacific Life, succeeding chairman, president and CEO Jim Morris, on April 1, 2022. Morris is retiring. Button, currently the company’s chief financial officer, will be only the 15th chief executive in Pacific Life’s 154year history.
Lincoln Financial announced that Ellen Cooper, currently executive vice president, chief investment o cer, head of enterprise risk and the Annuity Solutions
group, will succeed Dennis Glass as CEO in May 2022. Glass will become chairman of the board. Glass served as CEO for 15 years, while Cooper has been with the company since 2012.
QUOTABLE
The answer is always no if we don’t ask. We can’t help people we don’t meet.
— Richard M. Demko II, director of insurance with Centric Wealth in Houston.
INSURERS LOOK TO INCREASE STAFF
In the next 12 months, 56% of insurance companies plan to increase staff, and 37% plan to maintain their current staff size. Technology, claims and operations roles are expected to see the greatest growth. Those were among the results of a study conducted by The Jacobson Group, which found that industry employment continues to grow while recruiting has become more difficult.
The study also revealed 7% of insurers plan to decrease staff in the next 12 months. This is down from 9% in January 2021 and 17% in July 2020.
Seventy-eight percent of insurers anticipate revenue growth in the next year, which is 11 points higher than in the January 2021 study. Only 1% of insurers expect a decrease in revenue.
For the first time in the study’s 12year history, all functional areas were considered moderately difficult or difficult to fill. Technology, analytics and actuarial roles are considered the most difficult, followed closely by executive positions.
DID YOU KNOW ?
45% of millennials said they are likely to buy life Source: The Wall Street Journal insurance because of COVID-19. Source: 2021 Barometer Survey
