Disability

Getting the DI Carriers to Hear Our Message: Why Agents are Reluctant to Sell DI
by Larry Schneider

Let’s go back to the 1990s when Planet DI (not Planet Hollywood) was flourishing with more than 100 carriers. Things were good then or were they? I remember giving a seminar to attendees of the 1999 DITC meeting called, “Why are agents reluctant to sell disability insurance?” Some of the reasons I gave then still apply today. What does that tell us? Since then, the DITC has disbanded and a new force has emerged to lead the way into the 21st century -- The International DI Society (IDIS). IDIS needs your help to make disability insurance the viable product it was years ago and help avoid the apathy asteroid that will wipe it out.

Many of us have talked about why agents are leaving this needed and basically untapped marketplace; why more agents aren’t out there selling disability insurance; why less product is being sold; why the home office doesn’t help the field force understand the product and how to field underwrite; and why it takes forever to get an application issued.

Starting immediately, we the field force, have to stop moaning and groaning and help the IDIS develop a viable battle plan to get our message heard. Maybe it’s time to hire an advocate to visit each of the carriers with a wish list. We will only get more agents selling disability insurance if the carriers change their M.O. After all, ag--ents do have other products that are eas-ier to sell. Many of the carriers are multi-line with LTC insurance, life insurance, critical illness insurance, annuities, health insurance, etc. Do carriers really care where the money comes from as long as it comes in? Well, they should care since their acquisition costs and declines are increasing
A meeting of all carriers should be held including their CEOs and associates. The meeting would cover common ground and agent issues. If the carriers don’t respond favorably to a reasonable request, we can only conclude that we can’t or shouldn’t expect too much or any support from them. Certainly, some of you have some influence with the home office. One or two favorable responses would be a nice start and then maybe the others will see fit to help divert that apathy asteroid. We must take a stand. We have to let the home offices know that, in order for us to all survive, we must band together as a team -- not as kings and serfs.

In any event, here are some of my thoughts for the battle plan that should be considered amongst you and brought to the attention of the home office:
• Create a money battle chest (tax the carriers!).
• Hire a lobbyist. This can’t be a volunteer job; it will just wilt in time!
• Enlist all affiliated associations/publishers to participate.
• Convince the career agencies that they won’t have a premium loss in other products.
• Make it easier and more profitable for agents to sell disability insurance with higher commissions and incentives (although that doesn’t always work).
I would love to hear back with everyone’s thoughts, especially about the home office and what we can reasonably expect from them to make disability insurance more attractive to agents who are tired of losing sales and client goodwill.
Carriers have to dispel the rumors that disability insurance is a tough sell. Have we not learned lessons from what was spoken of in 1999? Are we asking too much to get new blood? Will the carriers give us old timers more Geritol so we can last longer? Joining the society is a start.
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Larry Schneider is a disability insurance specialist/denied claims expert. For more information, call 800-551-6211 or, 505-299-5566, fax: 505-299-7788, e-mail: info@di-resource-center.com, or visit: www.diresource-center.com.