Stephen Howard

As I’m “penning” this masterpiece I’m thankful for the National Association of Independent Life Brokerage Agencies (NAILBA), having just returned home from their annual conference. I must confess that I don’t spend much time in the meetings or general sessions despite the great work of organizers and sponsors bringing in ever more inspiring and informative speakers and having a knack for developing most-relevant topics for panel discussions.

I probably should, but I just can’t find the time…and for a very specific and special reason. I’ve truly been blessed with more great friends in my 38 years of service to this great industry, and approximately 35 NAILBA annual conventions, than I could easily count—and many of them gather at this great event. If you’re reading this you know who you are, because you bring an instant grin to my face when I see you. It’s a great time for me to catch up with these friends, and it seems like the main times that we don’t feel pulled a dozen different directions in a throng of attendees is when the meetings are in session. Those are the times we can really relax and chat for any decent period of time. Besides, I’ve got good friend Brittany Nielsen to rely on for better pictures of the sessions and speakers than I could ever take.

We say that this is a relationship business, and these friendships are by far the greatest gift I’ve been given in my life, with the important exceptions of my parents and my appropriately named wife Hope (I’m no longer Hopeless!). I’ve been making a concerted effort to tell folks how much their friendship means to me and I tried hard at this year’s NAILBA…particularly while I was picking their pockets for the NAILBA Charitable Foundation. And thus, the segue…

Hope and I, variously, have served on the board of this great foundation for eight of the past nine years, and I’m back on the board for another two years starting in 2023. The mission of the NAILBA Charitable Foundation is to encourage volunteerism among NAILBA members and provide grant funds to worthy charitable organizations that serve to enhance the quality of life for those less fortunate, with a special emphasis on children. Every charitable organization applying for grant funding must be sponsored by a NAILBA member agency, exhibitor, sponsor, or advertiser. Since 2002, the NAILBA Foundation has raised and contributed over $3.5 million to more than 245 deserving charities and community organizations nationwide. At the NAILBA annual convention, Foundation Board President Jim Sorebo announced that $180,000 in grants were awarded with 39 charities receiving at least a four figure contribution. This year’s Felton Grant, named after the founder of the NAILBA Charitable Foundation, Col. William J. Felton, and the Foundation’s largest grant each year, gave $20,000 to The Formation Project of North Charleston, SC, providing housing and shelter support for survivors of human trafficking.

At this year’s NAILBA conference contributions for the Charitable Foundation from carriers and marketing groups totalled $105,250, auctioneer extraordinaire Steve Katz raised more than $60,000 at the live auction, and Foundation members sold more than $25,000 in tickets for the Foundation raffle. The Artful Dodger would be proud of them! All this in addition to funds raised at Mutual of Omaha’s Casino Night after the awards dinner and many other contributions from NAILBA agencies, carriers, vendors and individual contributors throughout the year.

At NAILBA’s premier event, the Mooers Award dinner, a video is shown highlighting grant recipients and several times during the presentation I had to wipe my eyes seeing pictures of kids and families these funds will help.

I encourage you to help in the Foundation’s great work by making a contribution via their website www.nailbacharitablefoundation.org.

Well “Tis the Season” seems to be a catch-all for everything from endless carol loops running in all the stores, to long lines virtually everywhere, to that “Bold Adventurer” who cuts you off to make a three lane exit from the highway… But what it really “tis” is the season for giving. My wife and I are not the world’s most accomplished philanthropists, but we like to think we do a decent job. A local homeless shelter, a local food bank, The Humane Society of Greater Kansas City, a wonderful cat rescue named Kitty City here in Lenexa, and several others get donations throughout the year. And of course the Salvation Army and their intrepid bell ringers get a twenty most times I pass one, along with my thanks for the work they are doing. But the best feeling Hope and I get each year is at the local Walmart or Target, where we each pack a cart with Toys4Tots, wheel it to the checkout and then to the office where donations are stored. It’s amazingly fun to wander the toy aisles picking out the toys you know you would have enjoyed at different stages of your childhood. My cart always seems to have a preponderance of Hot Wheels and super hero action figures. Hope’s…not so much. As in most things, she’s better at this than I am.

I say this not for any type of acclaim—I think it lessens the act. And I’m certain that most if not all of you give generously to the charities that matter to you. But with the pandemic and painful inflation, charities of all types are experiencing harder times than usual. And it doesn’t take Nostradamus to figure out that even more families will be hurting this year than in the recent past. So I ask you to pick out some older coats and gloves, or buy new ones, and drop them off at the Salvation Army’s Project Warmth. Grab some canned goods and drop them in the bins available at every grocery store or send a check to your local food pantry. Drop a few bucks in the red kettle and thank the bell ringer. Donate pet food to your local animal shelter for their giving program. And maybe most heartwarming of all in my experience…swing a cart down the toy aisle. I can promise you you’ll be glad you did.

Heartfelt and well-earned congratulations to good friend Jason Lea and the staff of Brokers’ Service Marketing Group (BSMG)—celebrating 50 years of invaluable service to agents and the customers they serve. BSMG is a life insurance, annuity and long term care insurance brokerage general agency headquartered in Providence, RI. They assist producers in the upscale market by providing a range of marketable sales solutions including mutual funds and fixed and variable life contracts.

With a vision of building a world-class life insurance brokerage firm for advisors and institutions, Founder David B. Lea, Jr., launched BSMG in 1972 and delivered uncompromising support and service to top producers until his retirement in 2017. Under David’s leadership BSMG developed a national reputation for excellence and innovation and has become the largest New England-based agency of its kind. Sadly, David passed away in August 2019.

To this day, led by current CEO Jason E. Lea, the company maintains a long standing and well earned reputation for excellence in providing exceptional guidance to financial service professionals and financial institutions. Their team of top industry professionals strives to put clients in the best viable position every time to make agents’ business more profitable.

“We support advisors and financial institutions whose clients require asset and income protection as well as retirement solutions. Our expertise helps our customers deliver the best results to their clients every day,” relates Jason Lea. “Our Vision is to protect the future of families and businesses. Our innovation and passion empowers advisors and institutions across the country to achieve transformational results for their clients.”

One of the unique and most laudable aspects of the BSMG mission is striving to strengthen the communities in which they do business and help improve the quality of life for their neighbors. For many years Broker World has recognized BSMG for their premier producer engagement event, the BSMG Annual Charity Invitational at the Rhode Island Country Club, which has raised more than $1 million for local charities. In fact, it is no accident that we are running coverage of the 21st hosting of this event in this very issue, distributed at the NAILBA annual meeting (the industry’s premier BGA conference) hoping to encourage other BGAs to focus their agent gatherings on charitable causes. Some other BSMG community enrichment efforts include an annual toy and clothing drive for Children’s Friend, Rhode Island’s oldest child welfare organization, employees working with Habitat for Humanity Providence to build affordable houses for low-income families, and support of The Outreach Program, a nonprofit organization that focuses their attention on ending hunger. Early next year the staff members of BSMG will come together to package 58,000 meals for local Rhode Island charities.

“Our team members are our most valued resource,” Lea says, “BSMG goes the extra mile to foster a team-oriented, family-like atmosphere that enables our employees to thrive both inside and outside the workplace.” I’ve seen this firsthand on many occasions attending their wonderful golf tournament.

It has been a great gift to the Howards and Broker World to be associated with BSMG for more than 40 years and for a wonderful friendship shared with the Leas. David’s boisterous humor and rich laugh, his wife Pat’s fussing over every detail to make certain each event was as fantastic as possible, and, in particular for me, Jason’s sincere, appreciative and warm friendship has brightened many a BSMG, NAILBA, BRAMCO and now LIBRA meeting. Congratulations, and thank you, BSMG and the Leas, for 50 years of dedicated service to our industry and the countless lives your efforts have touched.

Heartfelt congratulations to some of the best friends Broker World and the Howards have ever had and could possibly ever have asked for—the Petersen family and Petersen International Underwriters. It is my distinct pleasure and honor to relay that Petersen International Underwriters is proud to announce the celebration of its 40th anniversary as a Coverholder at Lloyd’s of London.

More than 60 years ago founder W. Harold Petersen began a long journey of discovery into the world of disability insurance. Fueled by the personal experience of growing-up with a disabled father, Harold’s affinity to the DI market was instant when he became employed by Mutual of Omaha as a young man.

Harold spent years learning and teaching about disability insurance throughout the Midwest. Eventually, he and his family landed in California where he and his sons developed what is today Petersen International Underwriters.

Evolving from an independent retail brokerage into a full-service wholesale insurance business, the Petersens kept finding that many of the high-income-earning entertainers, attorneys and executives of California were unable to find sufficient levels of disability income insurance. They searched the U.S. and international insurance markets and eventually found the perfect solution at Lloyd’s of London, the centuries-old institution.

A formal introduction was made that blossomed into a successful partnership with the Lloyd’s insurance market that continues to flourish to this day. Four decades ago, Petersen International was granted the title of Coverholder, giving them the “power of the pen” to underwrite and bind insurance on behalf of the underwriting syndicates at Lloyd’s. Petersen International is the largest personal accident Coverholder at Lloyd’s in the United States.

To this day, Petersen International’s goals remain what they were those 60 years ago—to spread the word about the incredible importance of disability insurance so that every working American is financially protected in case of becoming sick or injured and unable to earn a living. Petersen International continues to adhere to Harold Petersen’s ideals by providing disability insurance to those who aren’t able to successfully attain sufficient DI coverage through the traditional U.S. market.

Petersen International looks forward to another 40 years as a member of Lloyd’s distinguished family. For more info about Petersen International Underwriters, visit www.piu.org.

It was my great pleasure to meet Harold and Jacquie Petersen more than 30 years ago at a National Association of Health Underwriters meeting. From the very beginning they were incredibly welcoming and appreciative of the magazine’s efforts and Harold was a great educator and mentor of mine in developing an understanding and appreciation of disability income insurance and its critical role in protecting the financial lives of families when a disability strikes. Today I’m proud to call Harold, Jacquie, Tom and yes, even Mark, Petersen as dear dear friends. Congratulations Petersens, and Petersen International Underwriters, on 60 plus years of great service to the industry and the customers it serves and for this special milestone of 40 years as a Lloyd’s Coverholder! [SPH]

My favorite Liam is probably Liam Devlin, Donald Sutherland’s character in the movie The Eagle Has Landed (and this and two other novels by author Jack Higgins). I still use one of my favorite quotes from time to time referring to the highly unlikely. Replying to a German officer who is explaining that Germany will shortly win World War II, Devlin offers, “Pigs may fly, General, but I doubt it!”

Assuming capital letters are a significant enough differentiator, my favorite LIAM is, not surprisingly, Life Insurance Awareness Month. LIAM is brought to you dutifully and passionately each year by Life Happens (lifehappens.org) in collaboration with, and with invaluable assistance from, LIMRA (limra.com). Throughout the year they provide a host of resources for agents to utilize with clients, prospects and in prospecting efforts, as well as consumer-facing campaigns to raise awareness among the public. Any statistics referenced in this offering are thanks to one, if not both, of these incredible insurance industry service organizations.

Leaving Murder Hornets and Monkeypox aside for this discussion, two-plus years into living with the specter of COVID-19 consumer awareness of the importance of life insurance is high, but that hasn’t seemed to statistically translate into a rush to buy overall. Only about half of Americans have any life insurance coverage, down from 63 percent just 10 years ago. This despite stats indicating that there are 106 million Americans—41 percent of the adult population—who acknowledge they are living with a life insurance coverage gap and thirty-seven percent of Americans who claim they plan to buy life insurance this year. Thirty-one percent said they are more likely to buy life insurance due to COVID-19.

We all recognize that there unfortunately are Americans who simply are not prospects for our products—we see some of them on the corners of busy intersections and in homeless camps throughout our country. Further, there are a significant number who have basic necessity needs so acute that there simply isn’t anything left for life insurance. Perhaps a few have a small burial policy stuffed in a drawer somewhere. What we should all feel more keenly is the moral obligation to help those families whose means do not currently prevent reducing or eliminating their coverage gap and educate them. Persuade them. Gently assault them with the real numbers necessary for their loved ones to continue to live life in at least some semblance of the manner they currently do should a breadwinner die unexpectedly.

There are more than 77 million middle-income Americans, defined as having a household income of $50,000-$99,900, making up around 31 percent of the total population. More than half (52 percent) of middle-income Americans report having life insurance. The statistics show that nearly forty percent of middle-income Americans believe they don’t have enough coverage, representing that more than 29 million middle-income Americans live with a coverage gap. But we should consider further two important factors: 35 percent of men and 22 percent of women believe the coverage they receive through the workplace is sufficient. Yet according to the U.S. Bureau of Labor Statistics the median life insurance coverage offered at the workplace is either a flat sum of $20,000 or one year’s salary. Further, about 30 percent of consumers view life insurance only for burial and final expenses—clearly resulting in not purchasing enough coverage to provide income replacement, not to mention enable wealth transfer, two key ways life insurance can benefit loved ones after a wage earner dies.

Forty-two percent of Americans say their household would face financial hardship within six months should a wage earner die unexpectedly. Twenty-five percent would struggle financially within a month. Among the reasons middle Americans cite as reasons for not seeking life insurance coverage (or more) are that health issues make it difficult, they don’t know what to buy or how much coverage they need, and that they can’t afford it (the perceived cost is too high). These are considerations or misperceptions that a life insurance agent is uniquely more capable than any other entity to correct and solve!

Meanwhile nearly half of uninsured Millennials (49 percent) say they haven’t purchased life insurance because no one has approached them. And 47 percent of consumers said they preferred to use a financial professional to purchase life insurance. It is incumbent upon our industry to do the utmost to prevent these unnecessarily vulnerable families from spiraling into the strata of those who truly can’t afford to purchase life insurance products. If nothing else, LIAM should remind life insurance agents that there are many un- or under-approached prospects whose lives you could immeasurably positively impact.

It’ll take a collective effort of a whole lot of brains less limited than mine to bring about real, widespread change in the number of un- or under-insured Americans with enough income to afford sufficient, or at least more, life insurance. It is my hope that this year my favorite all-caps LIAM can spur at least Broker World readers to consider tithing their time and expertise to reach out to folks who need, and can manage to afford, to close their life insurance coverage gap. And, when faced with reluctance or indecision, you could always pound the COVID drum like a swing state politician setting election parameters.[SPH]

Sad news indeed for those of us who appreciate the brokerage business as it was in years past. An icon of those days, David Lenaberg, Ph.D., passed on April 20 in High Point, NC.

Prior to his insurance career Lenaberg earned a Ph.D. in mathematics from LSU and served as a professor there. A member of the Society of Actuaries, Lenaberg was the longtime chairman, president and CEO of Banner Life Insurance Co., president and CEO of William Penn Life Insurance Company of New York, Inc., and later president and CEO of Legal & General America. Upon retiring from LGA, he served on The Marketing Alliance board of directors.

“As a fellow TMA board member, I was blessed to be exposed often to Dave’s perspectives. He was a brilliant man, quick to share his positive comments whether business or personal. He could cut through the nonsense and get right to the most appropriate action. It was rewarding and fun to be in his presence,” remembers Art Jetter, adding, “Dave had a delightful sense of humor.”

Jack Dewald relates, “As TMA Board Chairman since 2010, I always appreciated his insight and direction for TMA. He offered a unique perspective that helped us (TMA) refine our distribution techniques, enabled us to be better negotiators and better providers on behalf of our distribution partners. At Banner/William Penn/LGA he was a master of low cost term insurance delivery—operated a very lean home office platform, highly proficient, high volume. Did one thing very well and stuck to his knitting.” Dewald also credits him with significant work for the NAILBA Charitable Foundation: “One of the early and “big time” sponsors of the NAILBA Foundation—he used outlandish gifts coupled to required matching contributions to maximize income to the foundation and bring attention to its mission.” Dewald continued, “In social/personal settings he was always gregarious and fun to be around…a true friend who I enjoyed spending time with.”

Longtime friend Ed Murray added, ”Dave was straight as the day is long. No hidden agenda, no double speak. You knew where he stood. He appeared to make quick impulsive decisions which, after time, you realized were well thought out and even more well reasoned. He was the consummate professional who did the right things for the right reasons and never equivocated or backpedaled. Dave was fun to be with and even more fun to joust with intellectually. Never part of the herd in his thinking. A constant learner with an inquisitive and eclectic mind. Never boring and always ready to throw “hand grenades” to get the debate energized. Dave was a loyal friend, a great mentor and a unique human being. A true gentleman who I will sorely miss.”

Although I was nowhere near as close to Dave as Art, Jack and Ed, I had plenty of exposure to his incredible acumen and insight. His contributions to our industry were many, undoubtedly most significant are the vast multitude of families helped in their times of direst need through his excellent leadership of some of the industry’s greatest brokerage companies. As seems to be the case with me and many Ph.D.s, a great deal of his industry brilliance went well over my head. But I also had numerous occasions to witness and enjoy his great wit and sense of humor and for that I am grateful. RIP Dave, and thank you.[SPH]

There is a series of commercials on TV these days (from a cable service that I despise due to their termination/billing practices) where the spots show two unrelated programs that magically merge into a single action sequence as a result of the customer flipping rapidly back and forth between the two. Serena Williams…Wonder Woman…Serena…Wonder Woman…then cut to a mall scene where, in my view, the greatest women’s tennis player ever appears in a Wonder Woman costume and destroys malicious tennis ball shooting robots by returning serve. The appeal is heightened for me no doubt by the scene of the most-famous-for-whining men’s tennis player ever, John McEnroe, having one of the robots’ shots spill his drink on him. There’s also a Serena/Matrix one and a baseball/Ghostbusters spot.

Flo and her cohorts are mildly amusing in their “bundles” commercials, and I like the creativity of the Gecko ad developers, although I suspect that the appeal is subtly greatly enhanced by the bipedal lizard’s British accent. My four-decades-long patronage of my local State Farm guy would suggest, with apologies to Barbara Mandrell, I was bundling…when bundling wasn’t coooool.
I’m not sure, etymologically speaking, where bundling, multitasking, dual-purpose, combo, and other terms of their ilk are all linked, but I suspect my Spirograph would need to work overtime to produce an accurate Venn diagram. I do know that there are a plethora of word bundles that are oxymoronic: Postal service, government organization, temporary tax increase, jumbo shrimp and undeniably the most egregious—veggie burger. But that’s old news. And don’t even get me started on pineapple on a pizza…

Whether by fortuitous happenstance, or a blatantly obvious intent to manipulate, the July issue of Broker World has for 24 years been promoted as our Life Insurance issue and yet has dedicated a large percentage of the editorial copy to our annual Milliman Long Term Care Insurance Survey. Hmmmmm.

I proselytize frequently about what I believe are under-presented solutions designed to alleviate some of the stress and misery of potential insurance product consumers, long term care protection a frequent soapbox. That said, I don’t have my head in the sand about aspects of the stand-alone LTCI product that plague carriers, agents and existing policyholders alike. LTCI lapse ratios were tragically over-estimated initially and forced greatly unpalatable rate increases for consumers. While “use it or lose it” may resonate negatively for prospects, “pay for it for decades and then just abandon it’’ largely wasn’t a justifiable action for existing policy holders. Further rate increase scenarios, although much improved, are still a specter as accurately pricing for morbidity is an ever-moving target and increased longevity, while most times a boon to life insurers, has been a great challenge for LTCI insurers—COVID government nursing home malfeasance notwithstanding. Add to the pricing Catch-22 the often stricter underwriting and longer issue times, and the risk of a decline, and it’s defensible that agents might not want to endanger existing client goodwill, leaving that privilege to another agent. An unfortunate reality is that many consumers ultimately pull their heads out of the sand only to discover it’s already too late to obtain traditional LTCI coverage.

But the fact remains undeniably clear that the long term care exposure risk to American consumers as a whole is vast, and government program funded solutions are greatly unpalatable for all but the most desperate. And as Boomers inevitably age into the system, long term care staffing concerns and attendant cost of care projections are increasingly dire.

Inside, authors shed some light on solutions to the looming long term care crisis, but the whole point of this bundling, perhaps bungling, dissertation is that there are a great array of life insurance (and annuity) products now available with attendant long term care solutions. Linked-benefit, asset-based, hybrid, combo, or maybe “bundled”…our industry has come up with a plethora of palatable life/long term care solutions and many previously reluctant brokers are now able to set aside stand-alone LTCI concerns and actively engage their greatly valued clients in much needed long term care planning…in my unbiased opinion.[SPH]

It is my distinct pleasure to recognize here one of our industry’s perhaps unsung heroes, and my longtime dear friend, Ed Murray—this year’s recipient of the Billy Vogel Award bestowed by The Marketing Alliance at their recent spring meeting. The Billy Vogel Award is given annually to an individual working in the brokerage industry who possesses impressive business acumen, a sense of innovation and, above all, integrity.

After graduating with a degree in finance, Ed served as a combat veteran in the 11th Armored Cavalry Regiment known as “The Blackhorse” as an Artillery Forward Observer in Vietnam. An Artillery FO patrolled with infantry units and called in grid coordinates and artillery fire when under attack. An Artillery FO had to be extremely accurate in determining their own location and the location of the enemy or else terrible things could happen.

The start of Ed’s insurance career came after a brief stint in real estate, when he began working at Chubb Insurance. It didn’t take long to realize carrier life may not be a good fit, so his inner entrepreneur kicked in and he set out on his own, then ultimately teamed with Gordon Zuckerman to form Murray & Zuckerman, Inc., and set up shop in Schenectady, NY. Their vision was to have a general agency that serviced all four corners…of New York State.

Ed has been deeply involved in the National Association of Independent Life Brokerage Agencies (NAILBA) serving as its chair and receiving the association’s highest honor, the Douglas Mooers Award for Excellence. Another former chair, Mooers Award recipient, and also longtime friend, Art Jetter, remembers, “Ed likes to give credit to others for NAILBA recovering from the financial issues in the late 90s, early 2000s. He doesn’t take any personal credit. However, when I was chair in 2000 and gave my swan song speech, I specifically recognized his incredible service as treasurer. I called him our ‘financial boy wonder.’ Without Ed understanding that the board had to stick to its guns on fiscal recovery, and rubbing our noses in it, there might not have been a recovery.”

Yet another former NAILBA chair, Mooers winner and good friend, Jack Dewald, adds, “I truly believe Ed has one of the best financial minds I’ve ever worked with. He understands practical application and simplifies complex issues. He runs circles around actuaries and carrier financial folks. Pretty much anything he has financial oversight of does well. He knows his strengths. He is a team player in every way, but his ‘old style’ would never allow him to succeed in a corporate world. He would last a minute max before pissing some hack off with his clarity and brevity.”

Introducing Ed as the Billy Vogel Award recipient, TMA President Tim Klusas said, “This year’s recipient is recognized for their business acumen, practical application, and ability to simplify complex issues. While I can’t possibly list all of this person’s contributions, it was this person’s resourcefulness, vision, innovative thinking, and above all integrity that got TMA off the ground in 1996. It was due to the persuasiveness that only a New York GA could provide.”

Ed’s daughter wanted to say this about his character, “You will never meet a man who more faithfully lives his values. He is a throwback to a more civil generation, and not just because he refuses to send or receive text messages (much to the chagrin of his daughters and grandchildren). He fulfills every obligation that he ever undertakes. He is self-made and self-reliant. His word is his bond, and everyone knows it. He is loyal. His dedication to the people in his life can be seen amongst family, childhood friends, and current colleagues. He has lived these values personally and throughout his career.”

I met Ed longer ago than I can remember, probably at a Sub Centers or NAILBA meeting, before he helped lay the groundwork for TMA. I found him to be welcoming, friendly, intensely loyal and a great fountain of knowledge about the brokerage business. Like many of us, Ed found it hard to deal with ignorance. At least in my case in the early years, the difference between Ed and many others was his unfailing willingness to work to chip away at my lack of knowledge and increase my understanding and appreciation of just how vital and honorable the brokerage business is.

Often the gruff humorist, in accepting the Billy Vogel Award his first exclamation was, “If I’d known I was going to receive this recognition I would have worn socks.” The brokerage industry is extremely fortunate to have Ed Murray as a champion, as am I to have him as a friend.[SPH]

I think I’ve digressed before about my love for the Farm Bureau robot advisor ads.You know, the ones with a white robot with glasses that looks like a cross between John Lithgow and a George Lucas stormtrooper. My favorite line is where the husband winks and the robot says, “Your ocular cavity is experiencing a malfunction.” I think if my wife hears that one more time in response to her “helpful observation” that some assigned task is still yet to be done I’d better start hiding the kitchen knives. “Working Tomorrow for a better Today.”—Procrastination. I have the t-shirt.

In the immortal words of Bob Dylan, “The times they are a-changin’.” I spent almost an hour in conversation with loyal reader Bob Brassard last week. I bet Bob is one of those guys whose most used app on his phone…is the telephone. I’m not sure if my beloved niece Sophie even knows which app is the telephone on the new iPhone my wife and I bought her. Anyway, Bob’s been selling insurance since 1963 and was bemoaning the intrusion of FinTech into the personal relationships he nurtures with his clients—specifically an insurer who emailed the policy direct to one of his clients. He appreciated the crux of Dave Murphy’s recent article on the value of hand delivered, nicely bound, paper policies to clients (Worth The Paper, April 2022). The gist of our convo was the great importance of growing the personal relationships with clients that has been the cornerstone of success in the insurance industry for many decades, and how the inevitable advance of FinTech into the everyday business of life insurance has the very real possibility of eroding those little but vital interactions if one doesn’t commit to staying vigilant.

Dear friend Ken Leibow writes an excellent column each month exploring and outlining countless advances in FinTech that make the sales and distribution of life insurance infinitely more efficient for the carrier, the BGA and the agent, and therefore of much greater service to the ultimate consumer. I recognize the value of eApps, advances making blood draws less necessary, policy tracking systems, needs analysis software, a bunch of stuff in agency management software, forms standardization, a whole bunch of the computereze that Ken utilizes in his articles that go way…way…over my head, and even, as a customer, ePolicy delivery. It is nice to know I can go to a folder on my laptop and review a policy if I should ever need to. Much easier than searching for it in my house, a task I would compare, with regrettably less exaggeration than should be, to the closing warehouse scene in Raiders of the Lost Ark.

But without the many little formerly formal in-person human interactions that bring agents together with customers, and the inevitable interactions with the families during those meetings, including of course the delivery of a policy printed on high quality paper and attractively bound, how true, and solid, and dependable, is the loyalty between consumer and agent, and hopefully between the consumer and his children and their children’s children? Available in the Hogwarts of industry tech wizardry are a number of things that can greatly help grow this trust and loyalty. At its simplest are things like birthday and annual coverage review reminders. More helpful still are ongoing policy sustainability trackers. There are many advancements in FinTech that truly can help make an agent a truly trusted advisor to multiple generations of clients’ families.

Further complicating the issue are the communication preferences of the various generations which we should adapt to as we progress in service through the younger generations of the families of our clients and new prospects we garner through referrals due to the trust we’ve banked. I’m not a Tweeter or a Tweetee, rarely a Facetimer, and enjoyed just my third Zoom call last Friday. I’m not personally on Facebook although I’ve participated in Facebook posts featuring my “T-shirt of the day.” (Today’s is, “I told my wife she should embrace her mistakes…she hugged me.”) So maybe turn to some of my authors for concrete advice on how to live in both worlds.

The danger, as I see it, is insidious and lurking. As we come to depend ever more heavily on the efficiencies of tech advances, how dedicated are we to maintaining the tried and true personal interactions with clients? How soon do these practices erode as we come to rely on other processes? How many emails have replaced phone calls, or hand written notes? Ya can’t yum with a client about a nice plate of ribs on a Zoom call. It ain’t the same as riding side by side if you’re playing Golden Tee on the internet.

Back before the cell phone, and even through the first few generations of them, I knew by heart all my friends’ phone numbers. My grandmother, alone and blind and still at home, remembered over thirty phone numbers of the people she called daily as a volunteer for a KC service called Telephone Reassurance. And she actually dialed them by running her fingers through the holes on the dial and counting one through zero. She was truly an amazing person. Fast forward to today and I have to pause and strain my brain for my wife’s number when they ask for my loyalty account at the grocery store. And that’s not all the fault of whisky consumption in the 80s and 90s…it’s the reliance I place on the directory in my iPhone.

So I’m “guilty as charged.” I’m not at all immune. I often just text a friend a quick hello, or anecdote. Now Hope and I do call and sing “Happy Birthday” to some dear friends when we remember (or our iPhones’ calendars remind us!), but often too are the texts with: HB2U, HB2U, HBD(Whomever), HB2U! Accompanied by the musical note, party hat and streamer emojis.

It occurs to me that I might need to step up my diligence.[SPH]

In a recent news release from our industry’s most admired information-gathering institution, the great folks at LIMRA offered some insight and optimism (perhaps a somewhat tarnished silver lining) about life insurance purchasing gains during year two of the COVID-19 pandemic (https://www.limra.com/en/newsroom/news-releases/2022/limra-2021-annual-u.s.-life-insurance-sales-growth-highest-since-1983/). Released on March 16, almost two years to the day from the date that I was forced to succumb to the reality that the initial strains at least of COVID were real, scary, and that life as I knew it would have to be altered quite substantially. My wife and I had to fly home from The Marketing Alliance meeting in New Orleans to attend to a family emergency. Just before leaving, NOLA had announced that the first two confirmed cases of COVID-19 had been found at a Marriott on Canal Street—fortunately the one on the other side of Canal from the Marriott hosting TMA. By the time we had arrived home my wife had a pronounced sinus infection (as she occaisionally gets from travel) and visited her doctor—who determined we had just traveled and indicated she needed to quarantine for 14 days. There were no tests yet. By the time her quarantine was served, our intention to travel to Oregon was squashed by severe warnings against air travel and airports, mandatory quarantines upon arrival for visitors, and complete lockdowns banning all visitors to hospitals and care facilities. Grocery shelves were soon barren and hand sanitizer and TP virtually became black market boondoggles. Thank God Oregon wasn’t run like New York. Bought Mom almost another full year.

Awkward segue back to the LIMRA info. I quote: “Propelled by 26 percent fourth quarter premium growth, total life insurance new annualized premium grew 20 percent in 2021, representing the highest annual growth since 1983, according to LIMRA’s Fourth Quarter U.S. Retail Life Insurance Sales Survey.” Further, “Policy sales improved two percent in the fourth quarter. For the year, policy sales were up five percent, which is the highest annual growth since 1983. With the exception of term products, all major product lines experienced policy sales growth in the fourth quarter and for the year.

“In 2021, whole life (WL) new premium grew 20 percent, year-over year. WL held 35 percent of the individual retail life insurance market in 2021. LIMRA is forecasting whole life sales to grow as much as 10 percent in 2022, with continued growth in 2023. Year-to-date, VUL new annualized premium increased 74 percent. VUL market share was 12 percent in 2021, which is the highest it has been since 2008. For the year, IUL was 21 percent higher than 2020 results. IUL represented a quarter of all individual life premium in 2021. Fixed UL ended the year up 10 percent and held eight percent of the total premium market share. In 2021, term new premium increased five percent, compared with 2020 results. This represents the highest premium growth for term premium since 2007.”

But term policies issued actually declined by one percent from 2020 (https://www.limra.com/siteassets/newsroom/fact-tank/sales-data/2021/q4/fourth-quarter-2021-individual-life-final.pdf). Quite frankly this is the number that surprises and significantly dismays me.
One could and maybe should see the numbers from LIMRA as very encouraging, particularly when viewed through the lens of all the drastic changes to the life insurance sales process brought on by the pandemic. “Life insurance is sold, not bought” is a phrase I’ve by and large considered gospel for my entire career serving this industry. And face-to-face is the best way of course…but COVID said “Not no more.” You all are to be applauded for your ability to morph your efforts to continue to be able to protect families.

And it makes absolutely perfect sense that devastating fatality numbers from COVID-19 would slap a significant percentage of Americans in the face with their own mortality and spur them to move purchasing life insurance closer to the front burner and hopefully turn up the heat. But let’s consider this. Of all life products, term is the one most easily commoditized and that has shown the most positive foothold in online/contactless sales thanks to great innovators like SelectQuote. And I’m harangued daily on Sirius by “Big Lou…he’s like you…he’s on meds too.” (And I freely admit that I’m unreasonably put off by his divination that I am, in fact, “a bit porky.”)

Where is all this going? I’m frankly shocked that the figure on term policies sold wasn’t positive and much much higher. The positive figures in the LIMRA results are all for products with higher premiums than term and I would have hoped that the lower price of term combined with the ease of access would have brought more lower income “Somedayers” into the ranks of the insured—at least at some level. We’re all aware that there is a vast chasm in the populace of the un- and under-insured. Looking at just the words under-insured and uninsured, one must grant that there are some among the wealthy that feel their assets are sufficient and they see no need to purchase any or perhaps more life insurance despite its clear financial advantages. Most poignant is the fact that there are way too many in our society where even the lowest premiums would actually take food off the table. Both these demographics skew the statistics as they aren’t now nor are they likely to be realistic prospects for life insurance, yet they are hypothetically or by projection included in the impact of the numbers. So, it is assumed, are those whose health makes them uninsurable.

But let’s not cloud the issue with the facts. It’s undeniable that there is still a vast multitude of families out there who could afford and qualify for our products, albeit with some changes to their budget perhaps, and who are without any or sufficient coverage to insure their spouse can remain in the family home and their children might have the ability to go to college.

As great friend and Broker World columnist Dave Murphy eloquently illustrates in this month’s Focus article, they are the people who, in near anonymity, make every day of our lives better, easier, more satisfying, less troublesome. The mechanics…servers…administrators…bar tenders…cashiers…HVAC guys…or maybe the new marrieds who finally made enough two wage earner income to move in down the street last month and wave every time they see you walking your dog. The list is almost endless. And you don’t even have to “prospect” for them. They are right in front of you every single day. You have your own unique expertise that they likely haven’t been sufficiently exposed to. You can help their families. You’ve earned enough in this great industry that they are able to be of service to you on a daily basis. Maybe carry a few extra business cards in your wallet and please ask just a few questions to see if you, in turn, can be of service to them.[SPH]

It is my great pleasure to recognize the excellence of good friend Tori Van Dusen-Roos, recipient of the 2021 Chairman’s Award, bestowed by Chairman Jason Lea at the 40th annual National Association of Independent Life Brokerage Agencies (NAILBA) conference. The Chairman’s Award, created in 2009, was developed to recognize the efforts of a NAILBA volunteer who has performed “over and above” normal expectations during the Chairman’s term. Qualifications include outstanding service or efforts on behalf of NAILBA within the chairman’s term, as well as efforts and service over and above normal expectations, outstanding leadership of a NAILBA initiative or project, and significant contributions to NAILBA in the areas of technology, education, communications, or marketing.

Co-principal of Diversified Brokerage Services, Inc., (DBS), Minneapolis, MN, Tori formally joined the firm and the industry in 1993, although her presence at many marketing group meetings and industry conferences, along with her brother Chip and mom and dad Diane and George Van Dusen, prior to her plunge into the family business made her many friends and admirers—myself included. Tori currently serves as COO, responsible for overseeing its Director of Operations, Director of Finance, Director of IT, Chief Underwriter and Director of HR.

Active in the industry from the beginning, Tori currently sits on the Field Advisory Councils of several insurance companies as well as The Leaders Group, a broker-dealer. She is a member of NAILBA’s Executive Board where she serves as treasurer, and on the NAILBA Charitable Foundation Board of Directors as its current Grants Committee chair. She is a current LIBRA Insurance Partners board member and is also a past board member of LifeMark Partners, past president of LIFE, Inc., and has served on numerous NAILBA committees over the course of her career.

DBS was founded in 1969 by George Van Dusen III as a brokerage wholesaler representing multiple carriers serving the upper Midwest. Their goal was to provide a single outlet for insurance advisors to supplement the products provided by their primary carriers. Over time they developed a number of business relationships with national and regional distribution systems and by 1989 had become a national organization with licenses in all 50 states. It needs saying that NAILBA was formed in 1980, DBS was at the organizing meeting and has been active in NAILBA activities ever since.

The Van Dusen family has been a great friend to the Howards and Broker World since its inception. I remember many nights at industry conferences sitting around while my father and George swapped industry intel and amusing anecdotes with Tori, Chip and I just soaking it in. I’ve been blessed to have the friendship of the Van Dusens since my start in 1983 and none any more so than Tori—always quick with a great smile and a warm hug whenever our paths cross.

Congratulations Tori on an honor richly deserved for your great service to our industry and the countless families your efforts help to protect. [SPH]