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Insurance Designers of America

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Insurance Designers of America, LLC, (IDA) announced that David R. Braun, CLU, has joined the firm as senior vice president-Institutional Markets. In his new role Braun will be responsible for working with all IDA partners in furthering life, disability, and long term care insurance sales inside banks, wirehouses, independent broker-dealers, registered investment advisors, and property casualty firms.

“We are excited to have David join us. He will be a great addition to our team,” said J. Craig Collins, president/executive director at IDA. “He is widely known and respected in our industry. His leadership will be invaluable. David’s boundless energy and passion for the insurance business, along with his vast knowledge and experience, will enhance our efforts to grow our business with institutional clients.”

With over 40 years of experience, Braun brings broad-based knowledge of the financial services industry and leadership in managing and developing distribution inside financial institutions. He comes to IDA from iPipeline where he was director of Sales – Financial Institutions.

“I am honored to join Insurance Designers,” Braun said. “They are viewed as an industry leader. Helping to grow their presence in the institutional markets represents a major opportunity. IDA partners are considered among the most respected and talented in supporting financial advisors and the insurance needs of their clients.”

Prior to iPipeline, Braun served as senior vice president at Highland Capital Brokerage where he was responsible for institutional sales. He began his insurance career with the Travelers-Life Division in 1977 in Milwaukee, proceeding to hold several positions with major U.S. financial institutions including Smith-Barney, ReliaStar (ING), Wells Fargo, and Investigo (now part of Broadridge).

Braun is a graduate of Washington and Lee University and holds FINRA Series 7, 63, and 24 licenses as well as his life and health licenses.

LifeMark + BRAMCO = LIBRA

LifeMark Partners and BRAMCO Financial Resources have joined forces to create LIBRA Insurance Partners (LIBRA), a life insurance marketing organization with more than 60 affiliated partner agencies. The new firm is dedicated to serving independent insurance producers, brokers and financial institutions with life, annuity and linked benefit insurance distribution, with projected cumulative production of $1.7 billion in 2019.

“This is an exciting time for our industry,” said William (Bill) Shelow, CLU®, ChFC®, CPCU®, LLIF, president and CEO of LIBRA and formerly the president and CEO of LifeMark Partners. “The scale and influence that this partnership represents and the benefits of combining resources and intellectual capital is beyond anything this industry has seen before. LIBRA will redefine the future of life insurance distribution.”

LIBRA agency partners will gain established relationships with an expanded line up of affiliated carriers and reinsurers, dedicated underwriting teams, case design resources and direct access to high-level contacts to facilitate the processing of complex cases, a dedicated advanced marketing attorney and a dedicated medical director, streamlined new business processing, invitations to exclusive training resources and events, and more. LIBRA’s experienced staff also offers hands-on, objective and knowledgeable insights on case design and underwriting.

“We have shared a mutual respect and passion for life insurance education and distribution with LifeMark Partners,” said Michael Hefferon, CFO and chief carrier strategy officer of LIBRA and formerly CEO of BRAMCO. “By joining forces and working together, the potential for our teams and partner agencies is endless. We look forward to bringing in a new era in life insurance distribution.”

The company’s headquarters will remain at the LifeMark offices in Linthicum Heights, MD.

LIBRA Insurance Partners is an insurance marketing organization dedicated to serving independent insurance producers, brokers and financial institutions. Formerly known as LifeMark Partners and BRAMCO Financial Resources, the united firm exists to leverage strategic relationships, expertise and innovation to expand life insurance distribution for the benefit of all stakeholders. LIBRA Insurance Partners is dedicated to the ongoing development and enhancement of resources to differentiate partner agencies from the competition. Its firms benefit from robust proprietary service offerings, unparalleled partnership, product expertise and access to industry-leading resources. To learn more about becoming a LIBRA partner firm, visit www.LIBRAInsurancePartners.com or call 410-837-3022.

New Indexed Figures For 2020

The Internal Revenue Service (IRS) and Social Security Administration have released the cost-of-living (COLA) inflation adjustments that apply to dollar limitations set forth in certain IRS Code Sections. The Consumer Price Index rose and therefore warranted increases in most indexed figures for 2020.

Social Security and Medicare Wage Base
For 2020, the Social Security wage base is $137,700. The Social Security rate of 6.2 percent is applied to wages up to the maximum taxable amount for the year; the Medicare portion of 1.45 percent applies to all wages.

In addition, individuals are liable for a 0.9 percent “Additional Medicare Tax” on all wages exceeding specific threshold amounts.

Indexed Compensation Levels
Highly compensated and Key employee definitions.

Highly compensated and Key employee definitions:

401(k) Plans
In 2020 the maximum for elective deferrals is $19,500 and the catch-up contribution for those 50 or older is $6,500. That means if you are age 50 or over during the 2020 taxable year, you may generally defer up to $26,000 into your 401(k) plan.

Healthcare FSA
The annual limit for participant salary reductions for the healthcare flexible spending account (FSA) for plan years starting on or after January 1, 2020, may not exceed $2,750. However, this does not preclude employer contributions (as long as they are not convertible to cash) from being added to participants’ healthcare FSAs.

Adoption Credit
For 2020 this tax credit is $14,300. The credit starts to phase out at $214,520 of modified adjusted gross income (AGI) levels and is completely phased out when modified AGI reaches $254,520.

The exclusion from income provided through an employer or a Section 125 cafeteria plan for adoption assistance also has a $14,300 limit for the 2020 taxable year. And remember – a participant may take the exclusion from income and the tax credit if enough expenses are incurred to support both programs separately.

Health Savings Account (HSA)
Minimum deductible amounts for the qualifying high-deductible health plan (HDHP) increased to $1,400 for self-only coverage and $2,800 for family coverage for 2020. Maximums for the HDHP out-of-pocket expenses increased to $6,900 for self-only coverage and $13,800 for family coverage for 2020.

Maximum contribution levels to an HSA for 2020 increased to $3,550 for self-only coverage and $7,100 for family coverage. The catch-up contribution allowed for those 55 and over is set at $1,000 for 2020. Remember, there are two general requirements in order to fund an HSA: You must have qualifying HDHP coverage and no other impermissible coverage (such as coverage under another employer’s plan or from a healthcare FSA that is not specifically compatible with an HSA).

Archer Medical Savings Account (MSA)
For high-deductible insurance plans that provide self-only coverage, the annual deductible amount must be at least $2,350 but not more than $3,550 for 2020. Total out-of-pocket expenses under plans that provide self-only coverage cannot exceed $4,750. For plans that provide family coverage in 2020, the annual deductible amount must be at least $4,750 but not more than $7,100, with out-of-pocket expenses that do not exceed $8,650.

Although new MSAs are not allowed, maximum contributions to existing MSAs that are attributable to single-coverage plans is 65 percent of the deductible amount. Maximum contributions for family-coverage plans are limited to 75 percent of the deductible amount. MSA contributions must be coordinated with any HSA contributions for the taxable year and cannot exceed the HSA maximums.

Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)
The annual limit for employer-sponsored QSEHRAs is $5,250 for those with single coverage and $10,600 with family coverage for 2020.

Dependent and/or Child Daycare Expenses
Just a reminder that although the daycare expense limit associated with a cafeteria plan is not indexed, the tax credit available through a participant’s tax filing was raised in 2003. The daycare credit must be filed on Form 2441 and attached to the 1040 tax filing form. Limits for daycare credit expenses are $3,000 of expenses covering one child and $6,000 for families with two or more children. If one of the parents is going to school full time or is incapable of self-care, the non-working spouse would be “deemed” as earning $250 per month for one qualifying child and $500 for two or more qualifying children. This “deemed” earned income is used whether a person is using the employer’s cafeteria plan or taking the daycare credit.

The cafeteria plan daycare contribution limit is $5,000 for a married couple filing a joint return, or for a participant filing a single return, or filing as “Head of Household.” For a married couple filing separate returns, the limit is $2,500 each. The daycare credit is reduced dollar for dollar by contributions to or benefits received from an employer’s cafeteria plan. An employee may participate in their employer’s cafeteria plan and take a portion of the daycare expenses through the credit if they have sufficient expenses in excess of their cafeteria plan annual election, but within the tax credit limits.

Commuter Accounts
For 2020 the monthly parking limit is $270 and the 2020 monthly limit for transit also increases to $270.

Long Term Care
For a qualified long term care insurance policy, the maximum non-taxable payment increases to $380 per day for 2020.

Finally, by participating in a cafeteria plan, the participant will be lowering their income for the Earned Income Tax Credit (EITC). Check out the new limits in IRS Publication 596 “Earned Income Credit” and for more information about this tax credit.

The information contained in this article is not intended to be legal, accounting, or other professional advice. We assume no liability whatsoever in connection with its use, nor are these comments directed to specific situations.

Dealing With Long Term Care Insurance Rate Increases

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Agents and brokers who have sold traditional long term care insurance policies over the last twenty years or more are now dealing with a relatively new phenomenon…substantial rate increases on older policies. Let’s look at the causes, the current situation, and how to respond.

At first, many carriers saw LTCI as a terrific marketing opportunity and rushed into the market beginning in 1988 with competitive prices. For years agents and brokers sold policies with the understanding that the carriers had appropriately priced their products and that the chances for rate increases were small. However, the industry was a young one and no one knew for sure whether or not the pricing would prove to be accurate.

The carriers then broadened the appeal of long term care insurance in the mid 1990’s by including home health care as a major benefit with little increase in premium. These benefits were very attractive to consumers, and they eventually led to a large number of home health care claims.

This in turn stressed the profitability of long term care insurance products. By the late 1990’s other problems arose, and carriers saw that their pricing assumptions were incorrect for four major reasons:

  • Interest rates were well below expectations so that carriers made less gain investing the premiums they received;
  • Unlike life insurance, lapse rates were extremely low creating more future policyholder claim potential;
  • Claims were more frequent, with higher costs and of longer duration than expected; and,
  • These factors in turn led to higher governmental reserve requirements, tying up assets.

Until now, insurance commissioners have been very resistive of carrier requests for big rate increases because they would impose extreme hardship on senior Americans with limited income and assets. Their emphasis was to protect the consumer, which was the major part of their job. They believed that insurance carriers had created their own problems by underpricing their products in order to sell more. They “made their beds” and needed to sleep in them. Insurance is a gamble and the carriers have lost, so they said.

But there has been a major change in thinking in the last five years. Insurance commissioners have realized that they need to provide carriers enough flexibility in pricing to enable them to pay future claims. Consumers in turn needed to be confident that their claims would be paid. They would be furious if their thousands of dollars of investment turned out to be wasted.

Insurance commissioners therefore needed to grant significant rate increases to protect consumers, and have done so. Because there was such a long period of time in which any rate increases which were granted were small, the rate increases needed now have only become greater as long term care insurance policies have matured. A large specialist carrier which has endured great turmoil, and is being liquidated, has been a prime example of what can happen when a carrier gets into financial difficulty. We don’t need more scenarios like that company, and the insurance commissioners know it.

This has led insurance commissioners to grant one-time rate increases as high as 80 to 95 percent on major blocs of policies. Carriers have to prove that their requests for rate increases are actuarily warranted. In many cases even the large rate increases granted have been less than those requested. One would expect the carriers to request rate increases in future years in addition to those granted thus far.

The reaction of agents and brokers are twofold. First, they are distressed that their honest past representation that the industry is a stable one has proved to be false. They are embarrassed, feel a loss of their reputation, and are empathetic with their policyholders not the insurance carriers.

Second, their will cease if policyholders cancel their policies or accept a contingent nonforfeiture benefit, which in many cases must be offered. For many this is a substantial part of their retirement income and needs to be protected. However some BGAs have contracts in which carriers will pay renewal commissions on the increase in premium. If these increases are passed on to agents, there may actually be an opportunity to receive increased renewal commissions.

In many instances insurance commissioners are insisting that carriers offer benefit changes which can ameliorate or even prevent any increase in premium. These options can or cannot be acceptable alternatives, depending on the current benefits in a policy. Let’s consider a few of them.

  • In many of the older policies containing five percent compound inflation riders, the daily benefit may have grown substantially and may even be higher than the current cost of care of a nursing home. With reimbursement policies, a reduction in the inflation rate, especially for policyholders now in the late seventies and eighties, may result in little reduction in benefits actually paid out.
  • In policies with lifetime benefits, the policyholders may have aged sufficiently that reducing the lifetime benefit limit to a certain benefit period may be a good gamble. This assumes that benefit periods for people in their late eighties or nineties are usually of short duration. This could even be true of a policy with say a five-year benefit period if one reduced it to a three-year benefit period.
  • In many other situations one could reduce the maximum daily benefit but maintain the five percent compound inflation rider in the hopes that there would not be a claim for a few years and that the maximum daily benefit would return to its previous level or higher. This solution may be more appropriate for policyholders who are still in their sixties or early seventies.
  • In policies with no inflation rider or with very little inflation of the daily benefit having occurred through increased benefit options, the policyholder should pay the increased premium if he or she can afford it. These rate increases are often well below the increases of policies with five percent compound inflation riders and are less onerous.

The rate increases normally take effect on the respective anniversary dates, so this cycle takes a whole year to occur. Policyholders are normally notified about sixty days in advance. Agents and brokers should be contacting their clients at the appropriate time and should be proactive in this process. If they don’t have current contact information, the carriers can provide at least the current mailing address and some of the time an up-to-date phone number if the phone number has changed. By servicing their policyholders, agents and brokers truly earn their renewal commissions.

They will find that their clients are initially angry and upset about their rate increases. Let them blow off some steam if necessary. However, some empathy and an honest discussion of alternatives will bring their clients around to appreciating their agent’s honesty and advice. Agents may even suggest alternatives not proposed by the insurance carrier which may be more appropriate in a given situation. It’s an opportunity to bind their relationship and even in some cases obtain referrals or sell additional products. And it’s the right way to deal with these long term care insurance rate increases.

This discussion should not end without mentioning that the long term care insurance industry has learned a great deal in the last thirty plus years, and that current rates should be far more stable. Hybrid and linked policies often have guaranteed rates, but this may not be such a big point of difference if traditional long term care insurance prices remain stable. Because the hybrid and linked products contain two benefits and the traditional long term care product has only one benefit, the traditional long term care product will probably remain the less expensive alternative.

Celiac Disease

Celiac disease is a dietary disorder caused by an immunologic response to gluten, which is a storage protein found in many grains. Known by several other names (sprue, gluten enteropathy, refractive celiac disease), it results in significant damage to the intestinal mucosa which causes malabsorption and numerous other gastrointestinal symptoms. While celiac disease may be suspected and diagnosed in infants and young children who are diagnosed with “failure to thrive” on a typical baby’s diet, the majority of cases present in late adolescence and early adulthood.

Classic symptoms of celiac disease include diarrhea, weight loss, fatty stools, weakness and muscle wasting. The older someone is at diagnosis, the less pronounced the symptoms are. Many of the findings depend on which nutrients are being predominantly malabsorbed: Weight loss and muscle wasting can be from malabsorption of fats, carbohydrates and protein; anemia from malabsorption of folate and Vitamin B12; and bone pain and skeletal problems from malabsorption of calcium. There are no identical findings in those affected, and in many it is a diagnosis of exclusion or recognized when the disease gets better when certain foods are excluded from the diet.

Celiac disease when mild or early in the course does not present with any marked physical findings. Years ago the disease was thought to be rare, but more recent studies estimate that up to one in 200 may be affected with some form of the disease. It is most common in those living in North America and Europe, and can present at virtually any age. Those affected can have only vague or mild discomfort and some can feel very sick. While genetics are suspected in some cases (identical twins show a high rate of concordance of symptoms when affected), environmental factors may also play a role.

Routine lab tests may raise a suspicion of celiac disease but are non-diagnostic in and of themselves. When the disease is suspected, serologic testing should be performed. The best test is the IgA tissue transaminase (IgA tTG antibody), which is both 98 percent sensitive and specific. Endoscopy with mucosal biopsies is the standard test for confirmation of celiac disease in those whose serologic blood tests are positive. Endoscopy is a procedure that requires the use of specific medical devices designed and engineered to be robust and fit for purpose through the use of certain materials and parts – perhaps like tungsten wire due to its strength and resistance to certain conditions and environments (check out a post on the topic) – that together can be used effectively in such a setting. A less scientific but tell-tale test is improvement clinically and with lab markers when gluten is completely withdrawn from the diet.

Celiac disease causes its most profound effects when it affects the young. Nutrients and vitamins that are essential for normal growth are malabsorbed. As such bone loss (osteomalacia and osteoporosis), reduced stature, clotting abnormalities (malabsorption of Vitamin K) and increased risk of gastrointestinal malignancies may present, as well as autoimmune disorders such as Type 1 diabetes and Sjogren’s syndrome. Delayed diagnosis in older individuals exists when misdiagnosis is made: As irritable bowel syndrome, acid hypersecretion or even psychogenic abdominal pain and discomfort associated with anxiety.

Treatment is the removal of all wheat, rye and barley products from the diet. It is often not a simple task, because many commercial products can be contaminated with wheat and barley even when the ingredient list doesn’t include them. Removal of gluten results in marked improvement within weeks, but a re-challenge with gluten (even accidentally when a product is consumed of unknown ingredients) can cause severe and explosive symptoms even worse than existed before the disease was treated.

When appropriately diagnosed and treated, celiac disease has an excellent outcome. The best cases in underwriting involve a proven diagnosis, normal weight (no signs of malabsorption), established diagnosis for several years, and regular doctor follow-up. The most difficult cases arise when concurrent disease (like osteoporosis or diabetes) is found or when the celiac disease is refractory to treatment or withdrawal of gluten. Many of those affected stumble on the causative agents and foods by trial and error, and strict dietary adherence is essential to continued well-being.

Curiosity, The Cat, And You.

We all grew up hearing the proverb that “Curiosity killed the cat.” If we were to pause and reflect on what the underlying message of this proverb of fairly-recent origin is intended to communicate, it is simply to warn of the dangers of unnecessary investigation or experimentation. The original form of the proverb, now little used, was “Care killed the cat.” In this instance, “care” was defined as “worry” or “sorrow for others,” which certainly sounds exactly like what we do as long term care advocates where our focus is client-centric and all about asking questions for the benefit of others whom we attempt to serve with our products and services.

The earliest printed reference to the original proverb is attributed to Ben Jonson, a British playwright in his 1598 play, Every Man in His Humour, reading “Helter skelter, hang sorrow, care will kill a cat, up-tails all, and a pox on the hangman.” This was first performed by a popular guy by the name of William Shakespeare.

Shakespeare later used a similar quote in his own 1599 play, Much Ado About Nothing, “What, courage man! what though care killed a cat, thou hast mettle enough in thee to kill care.”

The proverb remained the same for the next three hundred years, when Ebenezer Cobham Brewer included this definition in his Dictionary of Phrase and Fable: “Care killed the Cat. It is said that ‘a cat has nine lives,’ yet care would wear them all out.”

The origin of the modern variation with which we are all familiar remains unknown. It is found in an Irish newspaper from 1868: “They say curiosity killed a cat once,” In the 1902 edition of Proverbs: Maxims and Phrases, by John Hendricks Bechtel, the phrase “Curiosity killed the cat” is the lone entry under the topic “Curiosity.”

The 1909 short story Schools and Schools penned by O. Henry, includes a mention that suggests knowledge of the proverb had become widespread by that time: “Curiosity can do more things than kill a cat; and if emotions, well recognized as feminine, are inimical to feline life, then jealousy would soon leave the whole world cat-less.”

One hundred years later, I prefer to think of Curiosity as a good thing that has fueled exploration of the universe and the oceans, launched countless advances in medical treatments and pharmacology contributing to a longer lifespan for all of us, as well as the development of the various and sundry insurance products that we can offer to our clients to provide for better lives as they continue to age in place.

A friend of mine just underwent quadruple by-pass surgery. You may think, “No big deal these days. It is a fairly routine procedure now.” While that is now the case, back in the 1950’s it was still considered taboo to even touch the heart, much less operate on it. One of the pioneer cardiovascular surgeons, Dr. Russell M. Nelson, was later asked countless times, “How do you go from being told in medical school that you could not touch the heart or you would be discredited as a doctor, to leading the charge in the creation of the first heart-lung bypass machine?” His answer: “Oh, I was curious.”

A master of innovation and a man of great vision, Walt Disney shared this about Curiosity: “It keeps us moving forward, exploring, experimenting, and opening new doors.”

A little while ago I had the privilege of participating in a webinar featuring one of my favorite leadership authors, John Maxwell. John was straightforward in his teaching and shared with us The Law of Curiosity as he wrote about it in his wonderful book The 15 Invaluable Laws of Growth.

A key takeaway from the webinar is that while leadership is influence, you must know how to lead yourself first. It is important to know yourself in order to grow yourself.

The Law of Curiosity basically says that Growth is subject to wanting to learn more, which seems to make sense. Socrates said that wonder is the beginning of wisdom. That may explain why Edison could find two thousand ways not to power the filament of the electric light bulb before finally finding the way that worked.

Curiosity tells us that we are missing something, and it is okay for us to always assume that we are still missing something. It is this wonder that will continue to drive us to grow and develop.

Curiosity connected to Imagination and Creativity, takes us well beyond ordinary. I suspect that Walt Disney and all that he created is concrete evidence of this theory.

Curiosity begins with the existence and posing of more questions. Which in turn leads me to wonder, why don’t people ask more questions?!? I loved it when my own kids were young and “Why?” and “How come?” were very common questions heard around the house. Questions help you get beneath the surface and discover the truths of nature and science.
In his webinar, John challenged us to live a life of questions because Imagination creates options which is something that we should all be striving to do for ourselves, our families, and our clients. Imagination allows us to know that there are different ways of doing something. Creativity provides more solutions.

Don’t be afraid to seek out new products and carriers as alternative solutions to your clients. It may require you to be uncomfortable as you learn a new product, but once you have this additional arrow in your quiver it will be there time and time again in the future.
Curiosity is in fact the fuel that allows us to escape from our comfort zones and to become “comfortable with the uncomfortable.” Curiosity allows us to present ourselves to our prospects, clients, and centers of influence with confidence and without appearing arrogant. This is important because confidence is attractive to clients while arrogance is often nothing short of repelling.

Curiosity allows us to grow professionally as confidence is accompanied by competence. Confidence and competence allow us to provide our clients with the professional clarity and decisiveness that they are craving from us as their advocates. If we are truly placing ourselves on the same plane as doctors, attorneys and other advisors, this clarity and decisiveness is critical. I cannot imagine that too many of us would feel confident if any of these other professionals were to render advice either sheepishly or with an “I think” tagged on the end! Likewise, our clients need to see and feel the confidence and conviction that you have in the work that you do. They depend on it when following your recommendations and making these often life-altering decisions.

Curiosity allows us to ask the “what if?” questions that permit us to formulate appropriate recommendations. Like the fictional detective Lieutenant Columbo who seemingly always had just one more question, it is our natural curiosity that allows us to frame up and ask the important and necessary questions with evidenced resolve. Curiosity also strengthens us to make recommendations with a certainty that will move people through their inertia to make the decisions they keep putting off.

At the end of the day, if you don’t have confidence in your value others won’t either. Sooo…be Curious! It may have killed the cat but will place you in good stead with your clients.

Inter-Company Marketing Group

As experienced insurance recruiters and marketers well understand, there is no more powerful recruiting tool than personal referrals. For that reason, the marketing committee of the Inter-Company Marketing Group (ICMG) has announced its “Just Refer One” referral program.

According to ICMG marketing committee chair David Burke, “Referrals are crucial to success in our business. And this is true both in the world of insurance marketing and in the world of building membership in the ICMG. High-quality referrals identify high-quality ICMG membership prospects and ultimately increase conference attendance, attract engaged attendees, and improve partnership opportunities.”

Larry Sigle, executive director of the ICMG, says, “Our hope is that the attendees at our 2019 ICMG Conference were so impressed by the value of the event that they will be willing to share the news with other insurance industry decisions makers via our Just Refer One program.”

With the Just Refer One program, for every company an ICMG member refers to ICMG and subsequently attends the ICMG Annual Conference, the referring member will receive a $250 gift card when he or she picks up the registration packet at the annual conference.

ICMG members are asked to log in to the ICMG Web site and submit a referral under the “Why Join?” section, or email the referral’s name and contact information to Administration@icmg.org.

The ICMG 2020 conference is scheduled for January 29 – 31, 2020, in Orlando, Florida, and registration is now open and available on the web site (www.icmg.org).

The Inter-Company Marketing Group is the premier non-profit association that fosters strategic alliances among insurance and financial services companies, providing targeted networking opportunities, sharing of knowledge, experience, and resources for successful inter-company alliances. Among ICMG’s members are marketing and business development decision-makers with insurance carriers, reinsurers, distributors, third-party administrators, and other related companies in the insurance business. Find ICMG on LinkedIn or visit www.icmg.org to learn more. For more information, contact Larry Sigle, executive director, ICMG, 316-252-3368, administration@icmg.org, or Chuck Hirsch, president, Hirsch Communications Consulting, 314-630-1387, charles.k.hirsch@gmail.com.

Diversified Brokerage Services

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Diversified Brokerage Services (DBS) is pleased to welcome Leah Reckin-Mahoney, FLMI, PCS, to the team as its director of New Business, effective Monday, November 4, 2019.

An innovative and charismatic leader, Leah brings an extensive range of knowledge in life insurance new business, making her exceptionally well suited for the position. With more than 20 years of effective leadership experience she has proven skill at resolving complex business and process challenges and she has worked extensively building teams and fine-tuning the service experience her team members ultimately provide customers. Her drive and enthusiasm for improving processes and finding solutions will be a true asset to DBS.

“When I was presented with the opportunity to join the DBS family, I was instantly intrigued; it was almost like I was designed for the position,” Mahoney said. “I’m extremely excited to work for a BGA, with the variety of carriers and tasks involved with the position presenting a good challenge. I look forward to building on the success they’ve achieved over the years.”

Leah most recently served as director of New Business for the Individual Life and Annuity Division at Securian Financial. There, she provided strategic leadership to over 100 associates within new business processing, operation support, and training departments. She worked closely with numerous groups, setting divisional plans, accelerating key objectives, and maximizing resources to achieve sales and service goals.

“We’re extremely excited about the direction our company is going; we have been laser focused on new business and planning for the future,” explained Victoria Van Dusen-Roos, DBS chief operations officer. “Leah is a perfect fit for DBS, our team, and our vision.”

Prior to her director role, Leah served as manager of the Individual Life Insurance Customer Contact Center at Securian, a position that gave her an opportunity to study and truly understand the overall customer experience. She worked to ensure that her teams maintained prompt, accurate and cost effective service, and successfully achieved results that supported the organization’s goals. Early in her career Leah worked in a variety of roles within the Retirement division with clients, giving her first-hand knowledge into the advisor experience. This enabled her to become empathetic about the distribution experience, something that will also be an advantage as she moves to DBS.

“We are excited to have Leah join the DBS team. She brings us an incredible amount of experience and knowledge that will help us serve our distribution partners, their advisors, and their clients better in the future,” said Chip Van Dusen, DBS president and CEO. “Leah’s demonstrated commitment to increasing her knowledge base and implementing change will allow DBS to enhance its new business service offerings to our customers.”

Mutual of Omaha

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Mutual of Omaha has partnered with Ease, a leading HR and benefits software solution for small businesses, insurance brokers, and insurance carriers, to help brokers and HR administrators enroll and manage worksite and voluntary plans.

“We are excited about the partnership with Ease,” said Megan Holland, vice president, Sales Distribution and Marketing. “This partnership aligns with our strategic anchors of continuing to enhance and streamline the customer experience while adding value for our broker partners.”

Through EaseConnect+, Ease offers a technology solution for the benefits administration process by conveniently and securely submitting enrollment information and changes directly to Mutual of Omaha. In turn, ID cards are issued to employees more quickly, updates are processed seamlessly—and brokers have more time to focus on new business.

With this connection, Mutual of Omaha will become Ease’s newest EaseConnect+ partner, allowing brokers to safely and securely submit enrollment data directly to Mutual of Omaha. Additionally, Ease will fully setup and maintain this connection for brokers.

“Ease is proud to partner with such a well-respected organization as Mutual of Omaha and looks forward to offering this outstanding opportunity to our brokers,” said David Reid, CEO of Ease. “Mutual of Omaha now belongs to a growing roster of carriers that are committed to building a better experience for brokers, employers, and employees by embracing the latest technology.”

Founded in 1909, Mutual of Omaha is a Fortune 500 organization offering a variety of insurance and financial products for individuals, businesses and groups throughout the United States. In the individual market, Mutual is a leader in the senior health, life, long-term care, disability and annuity lines. The company also offers a portfolio of employee benefit and retirement solutions. For more information about Mutual of Omaha, visit www.mutualofomaha.com.

Ease is an online benefits enrollment system built for insurance brokers and employers. Ease makes it simple to set up and manage benefits, onboard new hires, stay compliant, and offer employees one destination for all their human resources information. Started in 2012 in San Francisco by employee benefits veteran David Reid and web and engineering architect Courtney Guertin, Ease works with insurance brokers and small businesses to create seamless HR and benefits processes on an easy-to-use system. Ease has offices in Las Vegas, New York, Omaha and San Diego. In 2015, Ease was launched on the West Coast and is among the most widely adopted, fastest growing solutions for brokers and employers in the area, with over 65,000 employers and over 2 million employees. For more information, head to www.ease.com.

Be The Broker: Study Shows Consumers Want A Life Insurance Agent

Here Are The Qualities They Are Looking For In A Specialist

Let’s face the facts: Life insurance simply isn’t selling in the United States like it did in previous generations. In 1965, Americans purchased 27 million policies, either individually or through their employer. By 2016, with a population more than 50 percent larger, only 27 million policies were sold. Could this be the death of life insurance? Why are fewer and fewer Americans protecting their loved ones with this priceless policy type? A recent study has helped shed insight on the barriers that prevent many Americans from ever purchasing life insurance.

This new study commissioned by AALU and its Future of The Industry Working Group surveyed 500 Americans between the ages of 25-75 that have never purchased an individual life insurance policy. One of the most alarming findings in the survey is that only about one-third of respondents said they feel fully knowledgeable about planning for the unexpected death of themselves or a loved one. This statistic alone shows that there is a clear knowledge gap that is contributing to America’s protection gap. However, the survey’s findings are also exciting for the industry as it appears there is a growing demand for life insurance with 63 percent of uninsured Americans believing they either need a policy or are unsure if they do. Additionally, nearly half of all Americans believe life insurance (in any form) is very or extremely relevant to their needs.

This growing demand proves there is a huge opportunity for agents today. And while it may not always feel like it, the survey also found that the majority of Americans (68 percent) prefer to purchase life insurance from a professional as opposed to online. Even further, when asked who their preferred professional was to buy from, the life insurance agent was the leading category (35 percent) ahead of financial advisors and planners.

This means that not only do the majority of Americans believe that they need a policy or are unsure, but they also want an agent that specializes in life insurance to help guide them through the process. Unfortunately, this proves there is a disconnect between the uninsured consumer and the life insurance broker. As an industry, how can we bridge this gap so that agents can help more consumers purchase the coverage they need?

It’s time for financial professionals to be the broker. Throughout the past 40 years, many have worked hard to shed the perception of the “life insurance agent” and have become a “financial advisor.” But while changing their title, it seems the majority of us have suddenly forgotten how to successfully sell life insurance. More than ever, it’s time to embrace your expertise as an insurance agent and at the same time, improve your sales process so that you can be the broker that consumers are seeking. The AALU survey also identified the following as the top-rated qualities of an ideal insurance professional:

  • Not pressuring clients
  • Being unbiased
  • Customizing recommendations to specific needs and goals
  • Listening
  • Simplifying without being patronizing

These five characteristics lead to one conclusion: It’s time for agents to amplify empathy. The survey also found that 73 percent of consumers feel they need to arm themselves with as much research as possible before meeting with an insurance professional to avoid being “talked into” buying something they don’t need. So, while America’s uninsured admit that they would value advice from a human expert, they are still bracing for a bad pitch from an agent. By amplifying empathy, life insurance professionals can break through this barrier and help consumers take the next step in purchasing a policy.

What does it mean to amplify empathy? Consumers are looking for agents that are listeners—not salespeople. They don’t want an agent that will pressure them into a quick decision. They need someone who can teach without judgment or condescension while also customizing recommendations to their specific needs. These client-centric behaviors can help agents overcome obstacles and provide the trusted advice needed for consumers to feel comfortable, knowledgeable and confident in their decision.

Additionally, for consumers to feel the most at ease with an agent, we must start closing the knowledge gap on financial education and the role that life insurance plays in this planning. By closing the knowledge gap, we can help reduce America’s protection gap. The survey found that less than half of respondents think they have enough knowledge to manage their own finances, which leaves a large percentage of consumers who are looking for guidance and feeling insecure about their decisions.

Our industry is facing a crossroads: It’s time that we become more client-centric, or we will be left behind. This study has helped not only identify the perceptions of life insurance today, but it has also uncovered the demand for a human-centered future. It’s time to embrace it—be the broker your clients need by providing the valuable service of life insurance through an educational, consultative and customized approach.