Gary Bleetstein

More businesses and advisors are utilizing applications to help improve their operations. Lots of businesses are hiring services that will allow them to develop their own app while others are using third-party apps that they can adapt to suit their business. But will this trend last or will the next tech bubble put a stop to it? At the moment, it looks like apps are here to stay.

When I first started in the life insurance business, my manager handed me a yellow rate book that listed whole life and term premiums by age, one-maybe two-underwriting classifications, and cash values for year 20 and age 65.

“This,” he said, “is your tool to success, and it will give you all the information you need.” After a few weeks of basic training, I would sit in a room with 25 other young recruits and call prospects from lists that were provided by the company. Sounds a lot like Glengarry Glen Ross, doesn’t it!

A few years later, in the late 1970s, my first interaction with technology in the business was life illustrations from the home office-a process that took about three days after I completed and submitted a two-page information sheet with carbon paper.

Looking back, I am amazed that I was able to make a living! As the years progressed, so did technology. It quickly became increasingly important to clients, carriers and all of us out on the street selling life insurance.

Every segment of our lives has been affected by technology; we started with eight-track players and progressed through audio cassettes, CDs and DVDs to video streaming. We lived through the Lanier word processor and then computers arrived-remember the AS400 and the Commodore 64. When the first box phones came out, we all felt like we were in an episode of “Get Smart” or “James Bond.” Some in the industry are too young to remember the days before photocopy machines, but today we have a combination of fax, photocopy and printer all in one device! You can even find portable printers similar to this portable airprint printer to take with you no matter where you go!

Once technology caught on, carriers needed to upgrade to more sophisticated policy service, marketing and accounting processing methods which were supposed to make our jobs not only easier but faster. And technology did make our lives easier in some areas-but more difficult in others.

Today clients expect faster and better service-they do not want to wait for the mail, they want everything yesterday via fax, email or overnight delivery.

As an advisor and life insurance agent, the question you need to be asking yourself is: How will new technology enhance my business?

Currently, many brokerage agencies offer websites; down-loadable forms; term quote engines; and access to case status, underwriting and product information. But will sitting in your office with all these tools help your business? No! You still have to get out for a face-to-face consultation with your clients.

Today there is the E-App, E-Delivery, E-Signature, Check 21 processing and many other items that begin with an E. Technology has advanced enough to let you esign pdf, retrieve and convert documents online, and what not! However, with these applications come several questions: Will a direct link to an internet-based application really help build my business, or will it only confuse my clients? Will delivery of a policy via PDF cause me more or less work, and how will my clients like it? Will I be able to submit a $20 million application over the internet when I am not even with my client?

The answer to all of these questions should be: Yes, technology and a mobile app can enhance your practice. If you’re wanting to manage the applications on your phone more effectively then you may want to make use of this tweakbox download as it lets you organize your apps and potentially make some adjustments to them when needed that you otherwise would not be able to make.

Here’s how: Let’s say that you have just finished a round of golf with some friends. At cocktail time, one of them asks you: “How much do you think $10 million of term insurance would cost me with my health conditions?” With your iPhone and mobile app you can quickly give him a simple answer and make the sale!

Communication between advisors, BGAs, clients and carriers has become one of the most important aspects of our business, and the introduction of the smartphone and tablets has enabled us to keep in touch anytime and anywhere. Enhancing this level of communication available to us today is access to a user-friendly mobile app specifically built for the purpose of education, communication, and providing important information to you, the advisor, in order to provide enough information so that a sale can be made.

The most important feature of an advisor-friendly life insurance app is that it is a communication device that has enough information, but not too much. It needs to be easy to use, easy to navigate, and easy for a BGA providing the app to their advisors to educate them in how to use it.

Conclusion and Summary

Yes, technology is moving faster than all of us and we need to keep up with it as much as we possibly can, while at the same time continuing to write business, contain cost, retain relationships and maintain everything that goes with being an advocate for life insurance clients.

Here are my recommendations, and I know that if you follow these practices you will be even more successful in your practice, enhance your relationships and build some new, vitally important relationships.

The questions to ask about technology are:

???Am I working with a BGA who can help me in the area of technology and use of a mobile app?

???Do I know enough about technology?

???Do I have the tools necessary to make this new technology work for me to enhance my business?

???Does my staff know enough about the new technology, and can they adapt to it?

???Will using a BGA mobile app help me make more sales and communicate better with my BGA and clients?

The steps to take in order to achieve the goal of enhancing your practice with technology are:

???Become educated in technology and the terminology used in the new world.

???Read as much as you can about new hardware, software and technology for your practice in general.

???Leverage your knowledge about technology with your staff and your clients.

???Work with a BGA that is a leader in technology-to not only enhance your time management, but also to enhance your bottom line and make more sales.

Working with a BGA who can provide you with leading technology-which needs to include a mobile app-will be a game changer for you and your entire ?organization.

America’s recent economic disruption has prompted virtually every employer to uncover novel ways to reduce costs or get more value from assets already on the balance sheet. Since many employers have already reduced their retirement offering and other employee benefits years ago, they are now looking to their brokers for fresh ideas—both to enhance the profile of what they offer employees and to deal with gaps that undermine the effectiveness or fairness of their programs.

In the midst of this search for innovation, employers received a major wake-up call in July 2009 when a comprehensive study underscored major inequities in how company benefits plans are serving multicultural employees. The report—401(k) Plans in Living Color: A Study of 401(k) Disparities Across Racial and Ethnic Groups—analyzed information for nearly 3 million employees across 57 large U.S. companies and was conducted by Ariel Education Initiative and Hewitt Associates.

According to the study, African American and Hispanic employees are less likely than Caucasians and Asians to take part in their company 401(k) plans. And, when they do, they save at much lower rates. These employees also invest more conservatively—with less stock exposure—than their Caucasian and Asian counterparts.

The study also found that African Americans are more likely to take a loan from their 401(k) plans and twice as likely to take hardship withdrawals when compared to the whole population.

This recent evidence comes not long after the LIMRA findings in 2007—that only 36 percent of Hispanic households own life insurance, compared with 54 percent of the general population, and those who speak only Spanish are far less likely to own individual life insurance than Hispanics who speak English (25 percent versus 67 percent). This implies that many Hispanic families may rely solely on group life coverage through the workplace, making it even more urgent that they fully understand and take advantage of this essential protection.

Taken as a whole, studies like these raise significant questions about the effectiveness of employer programs in providing financial security for multicultural employees through their defined contribution and group benefits plans. For some employers with large numbers of African American or Hispanic employees, in particular, there may be issues with benefits plan balance and fairness. More importantly, though, most employers simply want to do the right thing for their employees, and the overall numbers indicate they might be falling short.

Employee benefits such as 401(k) plans and insurance products can be critical to attracting and retaining employees, and employers need help in addressing inequities in their programs.

First of all, brokers should be able to guide employers in analyzing whether multicultural employees are proportionately taking part in the plans. Second, brokers should guide their clients to take the right steps to correct any imbalances. If employers are not getting this proactive service from their current brokers, this might present an opportunity for another to step in and add significant value. Conversely, those who help build employee loyalty further strengthen their client relationships.

How Can Brokers Help?
When approaching a new or existing client, you should know how to identify the signals of ineffective benefit communications, particularly to multicultural employees, and know which carriers have specific capabilities to address these gaps.

Ineffective Benefits Materials. English language brochures must be carefully translated and tested for cultural alignment. In our experience, these materials run the risk of alienating the very employees who need to be engaged. One example is a sloppily translated Chinese language application which, rather than requesting a signature, asked the reader to “spit here.” Look at the benefits-related materials your client is using and find out from the carrier whether these materials were simply translated or were created “in culture”—with the benefit of close review by individuals who work within and understand that specific cultural community.

Beyond language, materials may show the all-too-common photo of a “smiling multicultural family.” Yet, using a photo of a Peruvian family juxtaposed with a dialect of Spanish common to Mexico appears comical—or, worse, sends a message that the employer is out of touch or uncaring.

No Supplemental Enrollment Materials. Employers often note that employees whose first language is not English don’t take full advantage of their benefits because they have too much difficulty with the forms. Further, they complain that federal rules do not allow them to translate these forms, thus preventing them from fixing the problem. As their broker, however, you may deliver a practical solution to your client with “guidance documents” in other languages, which are used alongside English language forms. These documents help multicultural employees with limited English faculty to understand what the standard form is looking for and to find answers to basic questions. With just this simple tool, your client may be able to boost program participation among multicultural employees while staying within the letter of the federal laws.

Inaccurate Assumptions of Financial Literacy. When companies assume their employees possess a fundamental grasp of financial concepts, they are mistaken. Financial literacy will range greatly among employees based on geography, education and income level. For multicultural employees, there is even greater complexity.

In some cultures, life insurance is considered a “privilege” available only to the very wealthy. In other cultures, retirement savings are thought unnecessary because tradition holds that elders are cared for by their children, even though such a paradigm may be quickly eroding.

People of different cultural backgrounds also process information differently, and their desire for specific types of knowledge will vary. For example, Hispanic employees might be satisfied with a high-level understanding of a particular concept—such as the role of group insurance or disability coverage—and then be suspicious or turned off by additional details that seem “forced upon them” to compel a sale. On the other hand, Asian employees might want layers of supplemental information that might seem excessive to some.

Brokers should align with carriers that understand these nuances of financial literacy and can provide the right resources—including workshops for specific multicultural groups—to help each employee get the information needed to make sound decisions. Of course, all employees can benefit from such training, as reinforced by the Ariel/Hewitt study’s challenge to employers to: “Provide retirement planning resources such as workshops (and company time to attend these)…”

Staff Has Limited Cultural Awareness. Even the best-formulated communications materials will be ineffective if the benefits administration staff isn’t properly attuned to the needs of multicultural employees. For example, people of different cultural backgrounds view the need for life insurance differently.

Hispanic men typically view their roles as “providing for the family” in the here and now, and may see life insurance as non-essential—unless someone clarifies the role insurance plays in “taking care” of family matters. Similarly, Asian families often include elders and fathers in financial decisions. So demands for “on the spot” benefits choices may turn Asian employees off.

Brokers can connect their clients with carriers who offer training opportunities for benefits staff so they can become more skilled at explaining benefits in terms that resonate with multicultural employees.

The Time Is Now
Now more than ever, employers need help from their benefits brokers. Financial constraints are demanding that they enhance the value of existing benefits just as research may indicate inequities in the ways their benefits are administered. Resourceful brokers can play a key role in addressing these dual issues if they take full advantage of the multicultural “bench strength” and specialized skills offered by carriers.

Employers need solutions now. They will appreciate the roles their current brokers play in helping them find these solutions, or may be looking for new brokers who have the skills and knowledge necessary to deliver results.