Life insurance
Robert Delmonico asks, “Has anyone else had a gut full of doing insurance reviews where they loyal long term policy holder has premiums going through the roof while new business premiums are discounted?”
I know I am.
The disparity is sometimes 3 – 4 times higher. Often the client can’t reapply to get the cheaper rates because of some sort of medical issue or change of circumstance. The same insurer is offering substantially cheaper cover for new business when they should be rewarding the loyal long term policy holder.
Then you get explanations like ‘it’s a different product series’ or the client is ‘being underwriting at a different point in time’ or the ‘premium rates have changed’.
Add to that tighter underwriting rules where so much as a scratch on the arm leads to an arm exclusion, underwriters barely willing to spend 30 seconds of time on the phone, atrocious new business systems and administration and ridiculous amounts of compliance red tape for the adviser.
It’s no wonder the new business pipeline has dried up for insurers.
The situation is pretty easy to fix. Restore commissions, reduce adviser red tape and spend some money fixing your admin and IT systems.