Thursday, March 28, 2024

Underwriting After Cancer

Advances in medical therapy have led to not only increased longevity after the diagnosis of cancer but in many cases an actual cure. Normal life expectancies are more often the case now after definitive cancer treatment, and extension of life after other cancer treatments are now reasonable expectations. Which cancers are most amenable to favorable underwriting and which may not be as favorable to long term survival are ultimate challenges for insurers. There are of course many different factors in making these estimations.

After a diagnosis of cancer, insurance postponement is the rule to better assess the degree of treatment and response to the therapy. Generally, this is done for a certain amount of years, and the clock begins not after diagnosis of the problem but after therapy is fully completed. There has to be definitive treatment for the cancer, otherwise the case remains a decline. There is a flat extra rating period after a certain amount of time, where an extra premium is charged until the risk of cancer recurrence equates to a standard mortality. At a certain point the insured’s mortality equals that of a standard premium and the flat extra falls off.

With many cancers the risk of recurrence is early in the process, and those for example which were amenable to complete removal are insured earlier and with shorter periods of added premium. Some however pose a risk of late residual mortality even after complete and radical treatment is accomplished. Breast cancer is one of those examples—there are recurrences even well after treatment and as such the added flat extra may persist for quite an extended time. Some types that are more notorious for adverse late outcomes may require a permanent flat extra for the duration of the policy to cover a possible cancer recurrence.

Not all cancers of a certain body organ or system are looked at or are rated equally. Each cancer is different and requires a specific focus on individual variables. Cancer cell type is important, as some types are more aggressive than others. The more the cells resemble the normal architecture of the organ involved, the better they do treatment-wise. Those that have wild growth, or anaplastic types, have poorer prognoses. The spread of the cancer is taken into account—those that spread to additional tissue or are larger in size have a different outcome than smaller more limited ones. Cancer is staged differently depending on whether it limits itself to the specific area or invades local musculature and lymph nodes. Cancer that has spread to other organs (metastatic) does the least well. Cancer may recur even after long indolent periods—even after 10 to 20 years of disease free periods.

Some malignancies are called indolent ones—they are not curable but are still compatible with many years of life. Leukemia (such as chronic lymphocytic leukemia), certain types of non-Hodgkin’s lymphoma, and skin disease which may eventually metastasize to organs (such as mycosis fungoides) may have very extended periods of survival. Those are insured at times with permanent ratings, because the risk of the cancer having adverse mortality is forever present. These types of cancers have to be looked at individually and ratings may gravitate to the side of caution because the underlying problem is perpetually present.

Second cancers are generally insured with higher ratings. The body’s immune system is key to cancer resistance and the appearance of a second malignant growth may signify an additional problem. Likewise, the long-term effects of cancer treatment may have to be taken into account. High dose chemotherapy and radiation treatments may have a beneficial effect on the primary cancer process but other body organ systems may fail over time due to the burden of treatment as cancer treatment affects all cells, not just diseased ones.

The key to insuring those with cancer rests on full staging information, confirmation of definitive treatment, and a lack of recurrence. Patient compliance and regular doctor follow-up is necessary in all of these instances—without them, estimates of survival and insurance offers are rarely possible.

Embrace Our Scars

At 43 years old I am no longer a young puppy. I remember being a 20-something in the business wishing that I could be older because I would then have more experience and credibility. Naturally, somebody who is 20-something in this business is dealing with people that are multiples the age of him or her. Well folks, be careful what you ask for because the time comes quickly.

Do not wish away time. Which is a topic for another column.

Anyway, as we get older and more mature, we tend to reflect on things that we didn’t slow down to do when we were in our 20s. Recently I have had a couple opportunities to reflect in a similar manner that probably many of you readers have done. My “reflections“ have been about “I wish I were a little smarter with my body when I was younger.“ That may sound odd because those that know me know that I do try to take care of myself. I work out, I read a lot, and I am usually the first one to bed at night while others shut down the bar. So, what am I referring to?

Allow me to explain. Back in January I had a major colon surgery because I have been dealing with diverticulitis for about 10 years—since I was 33. Why would a 33-year-old get diverticulitis? Nobody knows for sure, but it likely has to do with the strain of going too hard with athletics, lifting weights when younger, along with all the other stress I put on my body by—paradoxically—wanting to better myself.

Like the herniated discs in my back. My wife says that when I put my mind to something, there is no moderation involved. She is right.

Finally, late last year, I got sick of dealing with the diverticulitis so I agreed to surgery. The surgery went great, and I was basically told to sit on the couch for eight weeks to recover. For those of you that are physically active, you probably have not sat on the couch for an eight-week period of time for decades. That was me. And I did exactly that! I followed the doctor‘s orders perfectly.

After the eight weeks of rest, I felt better than I have in a decade as the surgery worked! So, I got back into working out with my 14-year-old future basketball star son (proud dad). After about a month, we were going pretty hard again. Well, that led to a hernia! Although a hernia surgery is not a big deal anymore, it was still very disappointing because that meant another surgery, another x weeks out, another scar! Two steps forward and one step back.

As I was talking with my doctor to plan the hernia surgery and recovery time, I said “I wish I had not been so stupid with my body when I was younger.“ Again, this is something that many of you may ponder from time to time. Here was my doctor’s response which I thought was pretty profound. She said, “But your scars are what make you who you are. You would not be who you are today if you did not have those scars.“

That statement has never been truer. As I think about it, almost all my scars have come from driving forward and wanting to better myself and better those around me. Now, granted, I have a few scars from just doing stupid stuff that I never should have done, but a majority of my “scars“ are from trying to get better as a human being. My dad, who died at a young age of 62, had a ton of “scars,” primarily because of him working hard with construction to support his family. He often said “If I knew I was going to live this long, I would’ve taken better care of myself.“ Well, at the same time, he had a reputation in our small town as being one of the hardest working people that anybody had ever met. He made a great living as well. Without his hard work ethic, his scars would’ve never come. Or maybe, without his scars, his tough work ethic would have never come. Chicken or the egg?

Your scars define you many times. Of course, I am not just referring to the “scars” in the literal sense. I am referring to the process of getting those scars.

Now I am not suggesting that you don’t take protective measures like wearing a weight belt (as I do), wearing a seatbelt, managing your stress, etc… Like anything, it’s a matter of magnitude. Said differently, we could all go through life without one scar by being couch potatoes, but is that what we want? You face bigger risks in life by being a couch potato than the risk of a “hernia” (figuratively and literally).

What about stress and anxiety? Seeing life insurance medical information on a daily basis, I know that a significant number of people have stress and anxiety as a “scar.” Those people that are stressed and anxious are oftentimes exceptionally good at their jobs. We read about actors and singers in the media that seem flawless with huge talent, yet they deal with stress, anxiety and depression. I would argue that many times those “scars” are a result of them actually giving a damn about what they do! I would argue that maybe that stress is a requirement for them to be good at what they do.

My son complains about stress and “butterflies” before his basketball games. It’s because he cares! If he did not care, he wouldn’t have those side effects. Before I give a big speech to an audience, I experience the same “side effect” and I love it!

I don’t know if it is the chicken or the egg. As in, because of the scars that we have, we get stronger and therefore become who we are. Or, conversely, because of being who we are and pushing ahead (maybe too hard at times) we will get scars.

It doesn’t matter to me if it is the chicken or the egg, or both. All that I know is, sometimes you must accept the scars as the entry fee for being who you are. If you would take who you are along with your scars over being a couch potato without any scars, then listen to my experience. Because my experience, and the conversation with my doctor, makes my scars something that I can be proud of. Embrace your scars. But do not be stupid and go out looking for more scars. If you do, buy life insurance first.

Call Me By (The Right) Name

Remember the song, “You Can Call Me Al,” by Paul Simon? Very catchy tune, and quirky lyrics.

“If you’ll be my bodyguard
I can be your long lost pal
I can call you Betty
And Betty, when you call me, you can call me Al”

Well, there is a backstory to these lyrics. The names “Al” and “Betty” in the song came from an actual incident in Paul Simon’s life. He was attending a party with his then-wife Peggy Harper. A French composer and conductor named Pierre Boulez also attended the party. Monsieur Boulez mistakenly referred to Paul as “Al” and to Peggy as “Betty.” This helped inspire the song.

Wait For It
I have had people forget my name, call me by the wrong name, and talk to me multiple times over periods of time without ever bothering to learn my name. These situations do not frustrate me as much as when I forget someone’s name, or worse, call them (confidently) by the wrong name.

True story. I have taken my cars to the same dealership for service for ten years. The service department has multiple standing desks to the right of the big service bay doors at which various service managers are stationed. I have worked with Brett, Tony, Leah, and several others, but have felt the strongest connection to Brian. This man lost 85 pounds in 2019! He talks about his kids, vacations, and is remarkably knowledgeable about the model cars we own.

For many years I have spoken his name and addressed him with enthusiasm even if I am being served by Tony, Brett, or others.

No joke. Recently I was standing at his desk after we had discussed the car’s issues, when Brian said, “My name is Jason.” Like that. Matter of fact.

I could not have been more apologetic.

He said that for many years, several times a year, the service managers have listened for me to trumpet his name! They see me pulling in and say, “Wait for it.”

I should probably be embarrassed, but in actuality, I wonder if it is my mistake to own. He does not wear a name badge, and there is no name plate on his desk. In all these instances did he ever think to straighten me out? I am totally at fault, but I also feel like I was trying to use his name to show respect.

Names and Brain Matter
Brain, not “Brian.” Whew.

According to the journal Brain Research (dedicated to publishing articles within the vastly expanding field of Neuroscience), something chemical and electrical happens in our brains when we hear our own names.

“There are several regions in the left hemisphere that show greater activation to one’s own name, including middle frontal cortex, middle and superior temporal cortex, and cuneus. These findings provide evidence that hearing one’s own name has unique brain functioning activation specific to one’s own name in relation to the names of others.”1
When we hear our name, we turn towards the speaker. Our name is a trigger for our attention.

We experience cognitive dissonance when someone uses our name to call someone else. It takes a moment to realize they are not talking to us. In my family, I am David, our son is David, my wife’s brother is David, and one of our daughters married a David. All of us turn when someone says, “David.”

At birth we are each given a name. That name is like a string that others tug to gain our attention. This began way back when our parents wanted us not to touch something, to come to them, to stop doing something, or to look in their direction for important information. When our name is spoken, not only does our brain register that someone wants our attention, but it also informs us that someone is focusing their attention on us.

Question: Are you skilled at using other people’s names when you are indeed making them the focus of your attention?

The Power of Using Another Person’s Name
When we say another person’s name in conversation it has several possible effects on them:

  • When you use their name, they know you know them.
  • Your tone when you say their name indicates how well you may know them.
  • Your facial expression when you speak other people’s names tells them what you think of them.
  • The frequency with which you use their name indicates how important they are in the context of a conversation.

These communication elements combine to create the true power of using someone’s name.

When we say another person’s name it is always in the context of making a statement, asking a question, or talking about the person to others. The use of another person’s name is usually followed by words describing feelings like happiness, concern, empathy, disappointment, or amazement. When they hear their name, they will also hear these emotions. They will feel either important and valued, or something negative.

Saying other people’s names gives you the power to shape the way people think you view them.

When someone looks back at a conversation that they had with you, your use of their name will cause them to remember how you made them feel.

Proper Use of Names
Like all the words you use in conversation, names matter. How you use them, how often, and in what context, matters.

For your consideration:

  • Say a person’s name when you sense you need to bring them back into the conversation. Just their name attracts attention and reminds them that they are the subject of your attention.
  • Say a person’s name to appear more competent in their eyes. They will hear your statements with personalized connotation.
  • Say a person’s name when you want to instill strong feelings in them during the interaction. Using a person’s name makes them feel important and validated.
  • Say a person’s name to establish trust between you. Their name on your tongue means you care and helps build an emotional connection with them.
  • Say a person’s name when you are going to pay them a compliment, give specific encouragement, or acknowledge something important that they said. A person’s name is part of who they are, and if you are going to speak about them intending to build them up, they will hear it with greater receptivity.

Sometimes, the only word necessary to convey everything we want to say to another person is simply their name. When someone we are with is overcome by emotion, acting irrationally, refusing responsibility, or simply at wits end, just saying their name can be calming, reassuring, and be all the confrontation that is needed.

The Gospel of John presents the first encounter of the risen Jesus with another person. She happened to be a woman who followed him for all the years of his ministry. She had seen him die. She had come to apply essential oils for burial.

“Jesus said to her, ‘Mary.’” (John 20:16)
Saying a person’s name says, “I see you. I am here.”

Summary
All people want to be treated as human beings, and not as prospects, projects, statistics, and certainly not objects. The simplest way to communicate to someone that they matter to you is to use their name. There is a danger, however, in using a person’s name in order to manipulate them. They will know if that is the intent. Misusing another person’s name will only diminish your own.

A proper, respectful use of another person’s name can elevate the value they receive in a conversation. Always end every conversation by using the other person’s name. They will leave the encounter feeling it was intimate and friendly.

Just make sure you are using the correct name. Remember “Brian?” (Actually, Jason).
Maybe he will write a song entitled, “You Can Call Me Brian.”

Reference:
https://www.sciencedirect.com/science/article/abs/pii/S0006899306022682.

Teaching The Three R’s

—Reality Of Claims Progression
—Risk Definitions That Are Manageable
—Reform Goals That Are Possible

No need to convince anyone that education and training success is the only transformational course of action that can guarantee an alternate outcome. There is also no question that the wonderful world of long term care planning solutions is in search of an alternate reality. Identifying a clear course of action and proselytizing a solution that compliments current fiscal circumstance seems to be a dominant theme across multiple stakeholders. And not surprisingly that course of action requires lower premiums. Lower premiums can only manifest themselves as a reflection of reduced benefits.

It does disturb me that I must state the obvious. The marketing and to some extent distribution paradigm is not working as we would wish. The frustration is that we know we would all acknowledge that we have drifted into an “elitist” approach. And we all know what is missing. If these product options cannot meet the needs of those who are exposed to a possible catastrophic risk, and affordable insurance options are simply not priced in a competitive environment, we cannot ever expand, or some would suggest return, to our origin—the middle mass market. Why not begin with matching the timing of premium to the true nature of the risk? There is virtually no risk until the early 70s, beginning to hit serious claim curves by the early 80s. I know I’m over simplifying a complicated pricing exercise. But dear readers it is specifically that 15 to 20 year hiatus in substantial claims that has plagued our sales efforts. The only predisposition to buy is sourced at the generational interdependence of American caregiving. Unless you got the claim on you by association or proximity the problem is just too far over the horizon to visualize with any accuracy. All I’m suggesting is that it should not stretch anyone’s credibility if the pattern of premium payment could be more similar to the actual risk. Yes, you will pay more as the potential of a serious claim begins to materialize in real time. However mystery and denial of the risk also lifts like a fog from your understanding of the need.

Everyone cannot afford a catastrophic insurance solution. For those who can, a cornucopia of asset-based solutions await the savvy consumer with eye popping advantages.

Now let’s return to the most frequently pondered basic question: “How much is enough?” If we could just stop here, before we begin to evaluate need or ability to pay, and clearly name and identify the approach. Is your primary goal to replace the great and vast majority of the risk or to provide supplemental income at the point of claim? Both have the same purpose to maintain, perhaps even to suggest, a guarantee that the buyer will be able to manage their own private care—preferably at home.

Just as a frame of reference, the State of Washington recently passed long term care legislation based on an increased payroll tax. You can opt out if you own an individual policy but only if you take action before the new law goes into effect next January. No comment at this point. It’s only the benefit level that it will provide that deserves mention—$36,500 lifetime benefit. The conversation as to where we might eventually provide public assistance on the front or the back of the claim is a debate raging among all stakeholders. For now just let the limited amount provided serve as a measure clearly viewed by some as adequate supplemental protection.

Surely there are few who would disagree that we must reform our vision as to our basic goals. We have left far too many behind. Home and community based services will continue to expand exponentially. We will continue to do what we do best—leverage potential catastrophic risk or provide meaningful supplemental coverage to private or public funding. Suffice it to say that there are currently a number of public assistance strategies in development or pending legislation. They all have one common denominator—they will require our help to succeed.

Keep the Faith!

Other than that I have no opinion on the subject.

Innovation Of Life Automated Underwriting And Digital Health Engagement

Automated Underwriting is the hot technology trend this year. There have been advancements since COVID-19 in 2020 from the growth in adoption of Electronic Health Records to AI in digital point of sales automated underwriting decisions. Data Analytics for predictive modeling is not some experimental outlier anymore. It is being used in mainstream underwriting today by life carriers and reinsurers. As we continue to keep you updated on the latest innovations in automated underwriting, it is also important to recognize the automation in the life insurance fulfillment process—like digital parameds and electronic lab slips. New software platforms relating to health and wellness are sprouting up in the market for carriers to offer to their policyholders. We are going to introduce in this article more details around Consumer Digital Health Engagement.

Automated Underwriting is Driven by Data and AI
SCOR is a global reinsurance company providing its clients with a broad range of innovative solutions. They have been on the cutting-edge doing studies, research, and development in automated underwriting (AUW). SCOR’s experts in underwriting have published on their website several articles on the future of life insurance underwriting. What they forecasted last year and in 2019 is being realized today.

I met with SCOR and they directed me to these articles, so here are some important facts: “Most companies agree the future of underwriting will be data driven. Data is one of the most valuable resources available to companies today, with new layers being added continuously. Computing capability is increasing and development of predictive models using machine learning techniques provide the ability to become much smarter in our assessment of risks. What does this mean for the future of underwriting? Underwriting assessments will be predominantly digital, will be unique to the individual risks and will require transparency.”

“Predictive models are an incredibly powerful tool with the potential to drive the life insurance industry forward in ways that are good for both consumers (improving their purchasing experience by removing intrusive requirements and long delays) and carriers (increasing taken rates and persistency and increasing the accuracy of mortality assessments). Traditional rules-based approaches start with assumptions and predict outcomes, while a predictive-model based strategy starts with outcomes and uses modelling techniques to identify data characteristics most likely to produce those outcomes. The predictive power of a model should be supported by a rules-based safety net. This predictive power coupled with the continued emergence of new underwriting data sources, puts us on the cusp of a sea change in what it means to underwrite.“

Velogica is SCOR’s automated underwriting platform designed to make instant underwriting decisions. It is integrated into the life insurance point-of-sales process. Velogica is helping major clients drive new models of efficient distribution through predictive risk assessment and point-of-sale policyholder capture. The Velogica algorithm correlates information from the life insurance application, motor vehicle reports, MIB reports and prescription drug history, and, in some states, criminal history. Clinical lab histories and credit-based mortality scores are on the horizon.

The Challenge of Automated Underwriting of Foreign Nationals
Global Insurance Solutions Group (Global SG) is not your typical life BGA because their niche business is providing life insurance to foreign nationals. They are experts at underwriting proposed insureds who travel to, reside and/or are citizens of other countries. Global SG works with specific carriers and life products that are available for this target market. I contacted Rita Northen, director of operations at Global SG and I asked her, “Does the progress we have made in automated underwriting work for this market?”

Rita explained, “Automated underwriting within the U.S. has expanded dramatically over the last several years. U.S. insurance carriers can collect an enormous amount of data on their insureds during the underwriting process. We are all aware of these data examples, i.e. MVR, script checks, MIB, and EHR. Our business focus at Global Insurance Solutions Group is in the high-net-worth foreign national market. The majority of our insureds reside outside of the U.S. and the automated underwriting processes frequently are not approved for our clients. Most carriers do not have the capabilities to access medical and financial data in other countries (or are not interested in trying).” I would like to clarify that automated underwriting does exist in other countries and medical data is available, however access to this data has either limited or restricted from companies outside of specific countries. Also U.S. life carriers have specific guidelines for underwriting foreign nationals, which a lot of its process involves paper and an underwriter to make a decision.

There is hope in making progress in getting access to some data. Rita wanted to emphasize the following: “One notable exception is Prudential, who we find takes a deeper dive into the data available on the internet. On our HNW foreign nationals, Prudential runs what it calls a DVR (Data Verification Report). These reports usually take a few days to complete and, although they are not always fully accurate or complete, typically give the carrier some independent information on the insured. The process definitely helps us in completing our cases quicker without having to get “the paper requirements” that, in this day and age, we all try to avoid.”

Consumer Digital Health Engagement
There is another new innovative trend in Insurtech. This new category is “Customer Engagement/Retention.” These are consumer mobile apps designed for carriers to offer to their policyholders to encourage healthy life choices, which in turn helps keep the business on the books.

Why Digital Health Engagement for Insurers? For life insurers, the value proposition is pretty obvious–healthy people are more likely to live longer. Yet, the majority of carriers do not engage with their members around their health (other than the initial exam, which is not exactly helpful). There are many benefits for insurers to implement an ongoing digital engagement strategy centered around health that delights users and provides benefits back to the issuer. Improving and helping to maintain overall health and wellbeing is the foundation. From there, a digital health engagement strategy can be used to differentiate your brand from competitors. With a custom branded white label app, members see your brand on a daily basis while they manage their lifestyle and positively associate it with helping them live better lives. This is very different from the relationship a traditional insurer has with their inforce policy holders. Once members are tracking their health and engaging with the branded platform, new personalized opportunities for cross- and up-sell are created. Rewards can increase use and retention, increase brand loyalty, and provide an attractive selling feature. dacadoo offers a robust health engagement platform, available as fully branded white label solutions, to provide these benefits and more to insurers around the world.

What’s your Health Score? Individuals have more health data than ever before available at their fingertips from trackers, wearables, and smartphone apps. It can be difficult to make sense of the volume of data and understand what truly affects your health. dacadoo’s mission is to make health measurable and understandable. One way it does so is by the Health Score, a real-time number from 1-1,000 based on 300 million person-years of clinical data, which has been patented and validated. dacadoo also offers the Risk Engine for Health quantification, based on the same underlying science as the Health Score, which can be accessed by API.

How can insurers use this data? Most insurers are not taking advantage of the recent advances in health tracking technology. By taking in these new data sources, such as steps and other health data, they can better estimate probabilities for mortality and morbidity. dacadoo’s Risk Engine was created to meet this need and augment existing underwriting. By providing a more complete health data set and imputing missing data points, insurers can strengthen accelerated underwriting, underwriting automation, and pricing engines. Some innovative insurers are creating new products to incentivize healthy behavior and offer premium discounts. Another use case is to recognize what behaviors have the biggest benefit, for instance increasing daily steps and activity, and offer programs for members to maintain or improve these areas. When people are healthier it’s a win-win—the individuals live better lives and it’s better for insurers.

Automating the Life Fulfillment Process
APPS electronic lab slip, in partnership with CRL, provides a fully digital solution. This automated process called eSlip, enables examiners to securely capture applicants’ biometric data and have the applicant sign the consent form via a tablet. Upon completion, the data is transmitted securely to CRL.

This process provides an electronic chain of custody that parallels the physical chain of custody of the specimen. It closes several gaps in the traditional process and ensures the data integrity throughout the process, eliminating the potential for unmatched results upon submission to the carrier. eSlip also reduces the risk associated with potential lost PHI during transit and the resultant consumer friction. It only makes sense that with today’s eApplication processes, the consumer experience continues through an end-to-end digital process. Bye bye paper!

Consumer Direct Life eApp While Maintaining The Agent Ecosystem

We are hearing new terms like eBGAs and eRetailers for the sale of insurance products. Putting the research, education, quoting, and electronic insurance application submission process in the hands of the consumer while maintaining the agent ecosystem is the new model for marketing and selling insurance. This insurance sales model is growing in popularity. The type of insurance products on the direct-to-consumer platforms include: Simplified term insurance, final expense, guaranteed income, HMA, disability insurance, critical illness, and, yes, even cross-selling to property and casualty. More product types continue to be simplified for this sales model like guaranteed universal life, long term care insurance, and Medicare supplemental insurance. Why is this model growing significantly in 2021? There are three reasons: Social media, Millennials, and COVID-19.

In the U.S.A, the average time spent on social media is two hours and 25 minutes daily. The most effective medium for marketing today is through social media platforms like Facebook, YouTube, LinkedIn, and others. Americans also spend about 5.3 hours daily on their mobile devices. This is an indicator that the platforms you use for quoting insurance and marketing should either be a native mobile app, hybrid mobile app, or mobile browser optimized Web App. Millennials, ages 25-40 born between 1981 and 1996, grew up with access to technology, online retail, and the sharing economy; therefore, they exhibit a discernable preference for experiences over product when spending time and money. Eighty percent of Millennials read reviews and do their own research before making a purchasing decision. They will ask for help when needed after they already have attempted the research. The target market of Millennials make up 72.1 million Americans. Yes, Millennials spend about 5.7 hours daily on their smartphones.

Since COVID-19 hit in 2020, the traditional method of selling insurance has relegated consumers to stay home and life agents to sell remotely. This has resulted in the acceleration of virtual tools, Artificial Intelligence (AI) for automated underwriting, and building out an easy consumer experience while still having an insurance advisor available for assistance when needed. Insurance advisors are given the software solutions and websites for marketing direct to consumers by a wholesaler like a BGA, IMO or GA at little or no cost. These direct-to-consumer tools are used to educate, quote, and have the consumer submit an insurance application direct while the agent and his/her upline receive commissions from the carrier. The consumer has easy access to an insurance advisor or call center for assistance during every step of the process from pre-sales to completing the insurance application. If a life insurance distributor did not develop these consumer tools in-house, then they are using a solution provider. The distributor or carrier purchases a license to use the consumer-direct software solutions, which can be used as a recruiting tool for agents. The huge advantage is that this enables multi-channel penetration like property and casualty shops, banks, health agents, and life insurance direct marketers. The formula for success is all about the consumer experience!

Consumer Engaging Solutions
Covr Financial Technologies’ digital, white-labeled platforms integrate seamlessly with financial brands to provide life, long term care, disability, and supplemental health solutions from top carriers to their clients in a simple, turnkey way. AI-driven tools, a digital advice model and omni-channel sales support seamlessly blend high-tech and high-touch. Covr is dedicated to transforming the insurance purchase process from something that was previously slow and paper-based to an experience that is fast, simple and digital. Covr currently serves over 25,000 financial advisors and over 20 million customers across over 30 financial institutions.

Among its new product launches are Covr’s multi-carrier term life insurance platform, which includes a growing number of instant-purchase journeys, and the proprietary LoanMatch Protector product. With Covr’s multi-carrier term insurance platform customers can apply for life insurance online in minutes, with real-time quotes available from the leading insurance carriers. Leading the way in the journey are product offerings from Bestow, Haven Life, Banner Life and Americo, which all offer fully digital, instant-decision capability and Covr’s technology to help clients find the product that fits best for them.

LoanMatch Protector mirrors the remainder of an existing mortgage, small business loan or other debt. The coverage adjusts to the client’s precise need, saving consumers up to 30 percent and offering the market-leading ability to complete the entire process in 15 minutes. Covr’s industry-leading digital life insurance platform integrates seamlessly into a financial institution’s existing website or other distribution model. This allows these financial institutions to offer a broad range of life insurance products from the leading insurance carriers to their customers. Today’s consumers expect choice, simplicity and speed when purchasing life insurance, and Covr’s technology is tailored to those demands.

Sureify’s Lifetime Platform is made up of three solutions: LifetimeAcquire, LifetimeService, and LifetimeEngage. LifetimeAcquire powers omnichannel sales capabilities that drive increased placement rates via quoting, e-application and automated underwriting. LifetimeService enables insurers to deploy a comprehensive digital self-service solution for their inforce business. And lastly, LifetimeEngage creates insights to foster a lifelong digital relationship with policyholders through multiple forms of engagement and analytics, leading to greater value for each policyholder. Sureify’s LifetimeEngage can help BGAs connect with policyholders in a meaningful, personalized, cost-effective way and engage with every customer in a way that helps ensure protection and maximize lifetime value. Rather than only having access to standard policy transaction data, Sureify’s LifetimeEngage platform delivers real time, actionable insights based on life events, interests, and personalized needs creating an organic source of cross-selling and upselling opportunities that strengthen the customer and agent relationship.

Other Consumer eApp Models
Consumers watch over 500 million hours of video daily. Imagine engaging with your clients with a Virtual Video Quoter. Well Employee Pooling (EP) has created Consumer Direct Insurance Tools (CDIT). An agent or carrier can create personalized videos about their products and educate the consumer on the importance of life insurance. CDIT is white labeled with options for you to select color and design. The videos can walk the consumer through an instant quote and an eApp. This is a great recruiting tool for BGAs. It can be co-branded for property and casualty shops, banks, and health agents. Of course, it is used by advisors for lead generation.

ApplicInt has an eApp solution called U*Complete. The power of this platform is the flexibility of the workflow model. An agent can run a quote, start a life insurance application, and then hand it off to a client to complete. U*Complete can also be integrated into a carrier’s website in a consumer direct model. ApplicInt is well known for fulfillment process software solutions like CallComplete, used at a carrier or paramed provider’s call center. They also have a digital paramed used by top providers like APPS. U*Complete is seamlessly plugged into the end-to-end life insurance electronic application process.

The Power of APIs
Solution providers are investing their research and development money into Application Programming Interface (API), which is a software intermediary that allows two applications to talk to each other. Equisoft/apply is an easy to use, sales flow oriented eApp wizard for electronic insurance applications resulting in fast and seamless policy approvals used by insurance advisors. Equisoft is the king of APIs, first building their eApp to easily integrate with a carrier’s back-office policy admin system using an API. They also have an agent and client portal platform that has an API that makes it seamless to plug in third-party applications and data. The eApp engine of products rules, mapping data to the life insurance application forms and sending data and forms to the carrier can be accessed by a user interface (UI) whereby a carrier or distributor can build a consumer facing experience for eApp.

No Code eApp is a self-service model. Management Research Services (mrs) for example has created an administration tool that makes it quick and easy to set up mapping the eApp questions to the life application forms and configure all the product rules without having the vendor to program it for you. The mrs API makes it extremely easy for you to build the UI frontend on your website. This is a low cost and speed-to-market life eApp solution.

The industry has recognized the importance of APIs. The Life Distribution Technology Committee (LDTC) kicked off a project in 2021 to standardize APIs for life insurance.

Tying it all together with Mobile and Social Media
I provided some powerful statistics about how many Americans and how much time is spent daily using their mobile devices and specifically for the purpose of social media. The vendors of these consumer tools for insurance understand that their design needs to work on all devices and have optimization for the best experience possible on a smartphone or tablet like an iPad. The power of the API for eApp is that the user interface can be developed on a mobile app and a web app. An agent, for example, creates a marketing campaign targeting a specific demographic on Facebook, and then there is a link to the consumer insurance tool. The consumer runs a quote and applies for insurance in one seamless experience. The agent and his/her upline get paid their commissions.

An interview With Eugene Cohen—The “No Hurry” And “No Confidence” Objections

2009 Honoree International DI Society’s
W. Harold Petersen Lifetime Achievement Award.


2015 Honoree of NAILBA’s
Douglas Mooers Award for Excellence.

From time to time we will feature an interview with Eugene Cohen, who has dedicated over 57 years of his life to learning, teaching, and supporting brokers in the agency’s quest to help consumers protect their incomes from the tragic effects of a disability. With the help of Victor Cohen, we will chronicle many of Eugene’s life lessons, advice, strategies, and what drives him every day to mentor those who wish to help their clients protect their incomes. Disability insurance is one of those products that can change the trajectory of an individual’s and a family’s life and is crucial for every financial planner and insurance professional to learn about and offer to clients.

This is the fourth part of our ongoing series with Eugene Cohen, CEO and founder of the Eugene Cohen Insurance Agency, Inc. The agency started as a disability insurance brokerage MGA and has grown to over 35 team members who are all focused on the wholesale service needs of financial professionals for disability, life, long term care, and annuities.

Victor: Over our past conversations (published in Broker World’s November 2020, January 2021, and March 2021 issues) you have shared the four types of objections you’ve identified that an advisor may face when discussing individual disability insurance with a client.

Eugene: Those objections being: No Need, No Money, No Hurry, and No Confidence. If a client is hesitant to apply for an individual disability insurance policy I ask myself, “What is the real objection?” “Which one of these four objections am I looking at?”

Victor: Well, let’s focus on just the “no hurry” objection right now. How would you handle that one?

Eugene: If it’s a “no hurry” objection, I have to help the client understand that there is a hurry, because health can change. Accidents take place. We never plan an accident. They happen.

We see accidents and illnesses happening all of the time. Look at Tiger Woods. Did Tiger Woods plan on getting in a serious car accident in California? Or Christopher Reeve, the actor who played Superman–did he plan on getting in a horse-riding accident? Look at actor Michael J. Fox who has Parkinson’s Disease. He first began noticing symptoms of young-onset Parkinson’s Disease at 29 years old. This is life. It is unpredictable. Sometimes an advisor may need to gently remind the client of this reality.

I suggest all advisors visit the website lifehappens.org to read the real-life stories of a doctor, an attorney, a financial planner, business owners…people whose financial lives would have been virtually destroyed had they not had a disability insurance policy when the unexpected happened. These stories are meant to be shared. They need to be heard.

If something does happen, I always say that having an individual disability insurance policy is like having a parachute. It’s always better to have it and not need it…than to need it and not have it.

I don’t have a crystal ball. I don’t know how long a client can wait. And neither does the client. We are offering a product that the client needs now. An individual disability insurance policy is not a luxury item like a piece of jewelry.

Victor: I remember you saying in one of our previous conversations that when the client sees the need for disability insurance, all of the other objections, like the “no hurry” objection, diminish.

Eugene: Exactly. I always say, “Need motivates action.” And the advisor can help a client see the need by asking questions. Victor, what is the longest vacation you’ve ever taken?

Victor: Maybe two or three weeks.

Eugene: Why not longer?

Victor: I need to work.

Eugene: Okay. So, let’s suppose you were out of work for two, three, or four years. You’d have an income problem, right?

Victor: Yes. I would.

Eugene: All of your obligations, the basics—food, clothes, shelter—would not be covered. If you were unable to work for too long your savings could disappear. Your retirement funds could disappear. If you own a home, you could be at risk of losing it because of a mortgage foreclosure. Do you see why it’s so important to protect that income?

Victor: Definitely. I do.

Eugene: We are asset protectors. For most people the ability to earn an income is their greatest asset. When you apply for a mortgage, what’s the most important question on the application?

Victor: They want to know about your income.

Eugene: Right. How about when you want to buy or lease a car?

Victor: Income.

Eugene: You got it.

Victor: So, let’s say the advisor has done their presentation. The client has expressed interest in applying for DI. They understand the need…but they tell the advisor, “I want to think about it.” So, we’re back to the “no hurry” objection.

Eugene: Well, if a client says they want to think about applying for a policy after they’ve already expressed interest in getting coverage, you could ask them, “What exactly do you want to think about it?” Perhaps there is a question I can answer.

Or perhaps you ask the client, “How long do you want to think about it?” They may give you a time frame. I may then say, “Why don’t we do this. You need more than money to buy this policy. We have to see if the company would even accept you. Why don’t we go through with the application and medical exam (if required by the underwriter) and get everything done. If the policy comes down and is approved, we can go over it again. You have said you need the policy, so let’s first see if we can get it for you. How does that sound?”

Victor: What if the client says, “I would like to go over it with my spouse.”

Eugene: Then perhaps I may say, “Why don’t we get the application submitted, get it approved if we can, and then I will go over the policy with both of you so both understand everything on the policy.”

Victor: Underwriting of a policy can take some time, right?

Eugene: Depending on the client’s health and how much information is needed by the underwriters, yes. Because we are talking about protecting many clients’ most valuable asset, I suggest the client get the process started as soon as possible.

Victor: Before we wrap up today’s conversation, I’d really appreciate hearing your thoughts on the “no confidence” objection.

Eugene: The client has to have confidence in the advisor. The client will be potentially spending thousands of dollars on this product over the years.

And how does an advisor gain the confidence of their client? By the advisor showing their knowledge of the product. As the saying goes, “Knowledge is power.”

Victor: I think there may be a belief among some advisors that they have to be a disability insurance expert to discuss the product with clients.

Eugene: I always say that if you prepare for the appointment by reading the illustration and going over the product brochure before the appointment, you will find that it is very easy to understand and present to a client.

A great way to get familiar with disability insurance–to gain perhaps the best product knowledge–is for the advisor to buy a disability income protection policy to protect his or her own income. Some companies even offer discounts for producers.

The first thing I did when I opened up my own agency years ago was purchase additional DI coverage. Besides increasing my individual disability insurance, I purchased a disability business overhead expense policy to cover my office rent. I had a five-year lease. And nowhere in that lease did it say I didn’t have to pay my monthly rent if I were sick or injured and couldn’t work. I was in a hurry to get that disability policy. I saw the need.

Victor: Thank you again for so generously sharing your experience and passion supporting advisors help their clients protect their incomes. I look forward to our next conversation!

Eugene: Thank you, Victor.

Hypothyroidism: Often A Silent Disease

Hypothyroidism is estimated to be present in over one percent of the population and up to five percent over the age of 60. While hypothyroidism is easily diagnosable through laboratory testing, most lab panels do not include it as a routine test. Many carry this diagnosis with overt symptoms, but most are asymptomatic particularly when the disease is mild. When advanced, it may cause symptoms that may lead to a medical emergency.

The thyroid gland controls the metabolic rate in the body. When body metabolism slows, both mental and physical sluggishness can develop. Particularly in older individuals, hypothyroidism can be mistaken for just the “normal” process of aging. However, blood pressure, heart function and fluid regulation may be adversely affected, and prompt treatment is required to restore normal body function.

Mild hypothyroidism generally escapes detection on a physical exam without a screening panel that includes thyroxine and thyroid stimulating hormone measurements (T4 and TSH). Patient complaints include weight gain, tiredness, weakness, mild shortness of breath on exertion, joint pains, and even reported depression. Further questioning may reveal cold intolerance, joint pains, myalgias, and prolonged bleeding from menstruation. While an enlarged thyroid gland may be part of the picture, hypothyroidism can occur without this finding. As hypothyroidism progresses, findings of high blood pressure, cardiac failure and significantly delayed reflexes become part of the picture.

Hypothyroidism is much more often than not a primary disease of the thyroid gland itself. Those treated for the opposite problem (hyperthyroidism or an overactive thyroid) may slip into hypothyroidism as a consequence of the treatment itself. Autoimmune disease, particularly a condition known as Hashimoto’s thyroiditis, causes the gland to gradually fail and not produce the necessary thyroid hormone needed by the body. Iodine deficiency (particularly in parts of the world where iodine is not supplemented into foods like bread and salt) and cases due to pituitary failure (secondary hypothyroidism) are less common causes.

Thyroxine (T4) and triiodothyronine (T3) are the body’s main active thyroid hormones. These levels are decreased in hypothyroidism. Because sometimes body proteins and other metabolic states cause abnormal binding to proteins and may affect the measured values, the best value for diagnosing hypothyroidism is TSH, or thyroid stimulating hormone. Think of the process as a feedback loop. The pituitary gland in the brain is the thyroid-regulating center. When thyroid levels are low, a signal from the pituitary tells the gland to produce more thyroid hormone, and TSH rises. The hormone charged with this is TSH. An elevated TSH level is the signal that more hormone is needed or the body’s supply is less than adequate. This combined with low thyroid hormone measurements make the diagnosis. When the cause is secondary (the pituitary is failing), both thyroid hormone and TSH levels may be simultaneously low, but then other pituitary hormones are likely low and the diagnosis is made through those coincidentally low values.

Untreated hypothyroidism, particularly in the older population, can become quite serious. Myxedema coma, the most severe form of hypothyroidism, may cause severe body decompensation. Heart disease, lowered blood pressure, subnormal body temperature and decreased heart rate can become life compromising. Additionally, myxedema is difficult to treat and must be done under monitored conditions with extreme caution. Dementia may also occur, and this condition has to be differentiated from prolonged low thyroid levels. Hormone replacement may reverse these changes.

Treatment of most cases of hypothyroidism can be accomplished with simple thyroid hormone supplementation in the form of a daily oral medication. T4 (Synthroid) may be taken once a day with excellent results, and sometimes combinations of T4 and the more active thyroid metabolite T3 are used. Proper dosage is established by blood testing and monitoring of TSH and symptoms. As different people have a different thyroid set point, the dosage is not a uniform dose for each individual.

Most underwritable thyroid disease is not ratable, with preferred status available to most all who do not have accompanying disease and who take their medication regularly. Hypothyroidism becomes ratable with diseases such as uncontrolled hypertension or cardiac abnormalities. Again, well-monitored replacement therapy is a key to the best result.

Smoked Brisket, Google And Reading Your Clients’ Minds

During the peak of the COVID-19 pandemic where we were all looking for new things to do with our families, I decided to pick up another hobby—barbeque. Not just barbeque, but barbeque of the smoked variety such as smoked brisket, smoked ribs, smoked chicken, etc. I have always loved my Weber grill but that did not do what I was seeking to accomplish—smoke. Eventually I suggested to my wife that we purchase a smoker, and smokers are usually not cheap! My wife, being fairly frugal, took some convincing, but she finally agreed and we got the smoker. Today I am probably 10 pounds heavier as a result!

What is my point? My point is, by the time my recommendation was verbalized to my wife that we were in dire need of a new $1,200 smoker, do you think there was any footprint at all of my interest in smokers? Were there any leading indicators? You guessed it, yes. That “leading indicator” was Google.

If my wife could have gotten into my phone to check my previous Google search terms, she would have known that I was conspiring to buy a smoker for probably two to three months prior to actually asking for her permission. Do I feel guilty about this? No. For two reasons: 1. I did ultimately ask her for permission after all. 2. Husbands across the country were doing the same thing that I was. How do I know? Check out Chart 1.

Chart 1

What this shows you is the search term’s relative popularity over time. This is a “Google Query” that shows you how popular the search term “Best Smokers” was over a time of your choosing. Obviously, I queried “best smoker” for the above data because that is exactly what I googled when I was educating myself on which ones to buy. In this query I chose five years as the period. My pencil circle on the left is June of 2020 and my circle on the right is November 2020 (Christmas shopping). The way the relative importance works is that the peak is set at 100 percent and anything lower than the peak is a percentage of that. Of course, the peak represents the highest point in time where people—including me—were “googling” the search term “Best Smoker.” You can see that the troughs over time are merely 25 percent or so of where the peak was back in June and November of 2020. The pandemic multiplied demand for smokers…

By me laying all of this out, you likely realize that this article is not about how popular smokers are. Rather, it’s about the information that is at your fingertips that is powerful! And if you are as savvy as the Broker World readership usually is, you are asking yourself questions like:

  • How do I get access to this query?
  • What financial/insurance search terms are popular in the queries?
  • How do I leverage the information I gather from the queries?
  • What smoker did Charlie buy that was supposedly “the best”?

Google Statistics
To say that Google has major influence over what we see, how we buy, etc. is a major understatement. Because everybody uses Google and relies on the information that Google leads us to, this entity is one of the most influential entities on Earth—whether good or bad. There is no search engine that compares to Google. For years they have had 90 percent plus market share of all searches in the United States. The next competitor is Bing with around six percent market share. Google conducts 3.5 billion searches a day (yes, billion!). Eighty-four percent of survey respondents say that they use Google three-plus times a day.

A lot like how economists track store traffic in brick and mortar stores every year to gauge how the economy will fare, that is exactly what Google does except on a more comprehensive basis. Google tracks not just one store or one industry, their queries track everything. Most importantly, Google tracks what consumers look for while the consumers are in private—like what I did with my grill. And Google having this kind of a snapshot into the brains of consumers is pure and unadulterated information that a company—whether in financial services or not—can leverage.

Where do I get access to this query?
www.Trends.google.com is where you can query and compare what consumers are searching for. You can query by time frame, query by region, drill down into subtopics and also run a query that compares certain search terms with others.

What financial/insurance search terms are popular?
I will give you the bad news and the good news.

Bad News: Relative to pop culture topics like movie stars and singers, there is not anything that I have found in financial services that compares. Take my example (shown in Chart 2) of the relative importance over time (since 2004) between “The Rock” and “Life Insurance.” “The Rock” is in the red and “Life Insurance” is in the blue. This means that there are more people googling The Rock than life insurance. Although I do like Dwayne “The Rock” Johnson, I think this is kind of a sad statement about our priorities.

Chart 2

Good News: If you were to zoom into the “Life Insurance” line—as I do (see Chart 3)—you will find that we have not been “googled” this much since 2007. This is a positive leading indicator!

Chart 3

I believe the heightened interest in life insurance is because of COVID-19 bringing a lot of folks to grips with their possible mortality. This heightened interest is not new news as it is supported by industry studies.


As far as life insurance versus other industry topics, let’s make a comparison query. In (Chart 4) I compared the relative popularity across five different terms: 1. Life Insurance; 2. Annuities; 3. IRA; Long Term Care; 5. Bank CD.

Chart 4

All lines are basically irrelevant except for the blue and the yellow. The blue line is “Life Insurance” and the yellow line is “IRA.” The other lines way down at the bottom—that all blend in and are hard to read—are “Annuities,” “Long Term Care” and “Bank CD.” The volatility in the yellow IRA line is interesting. Every year around tax time (April) the search term of “IRA” is heavily googled.

What is the most searched keyword of all of them on Google? Hint: It’s not “Life Insurance.” It is “Facebook.”

How do I leverage the information I gather from the queries?
Here is a list of items that my company (CG Financial Group) implements with our financial professionals based off findings like the above, and thus what I would suggest:

  1. If you do not sell life insurance, definitely consider it because that is clearly “top of mind,” at least relative to the other topics we deal with in financial services. Don’t know much about life insurance? Plug yourself—or your reps—into a training platform that your IMO may have. Or, check out www.retirement-academy.com that launched April 5. That is my online training platform that some agencies have outsourced their training to.
  2. Regarding life insurance: Although not shown, I further drilled down into the terms related to life insurance that are most searched. “Term Life Insurance” and “Whole Life Insurance” are among the top. Do you offer these? Also note that various questions like “Is life insurance tax-free?” are googled a lot! Do you discuss the tax-free potential of life insurance?
  3. Do you have a website?
  4. Does your website have the above-mentioned terms so Google can recognize that your site is a site it should direct its searchers to? That is called “search engine optimization.”
  5. Does your website have a term insurance quote engine? Studies show that consumers start their life insurance journeys online. Furthermore, studies are also showing that consumers are now becoming more comfortable with actually purchasing life insurance online.
  6. Do you sell annuities that can also be IRAs? If you sell annuities, then you certainly do have the capability of selling IRAs. Do you market this capability that you have? Don’t assume that if consumers know you sell annuities that they also know that those annuities can be IRAs!
  7. Do you have a Facebook business page? Three billion people worldwide use Facebook and so should you. Plus, it’s free.
  8. Make sure you are working with an IMO that helps you with all the above.

What smoker did Charlie buy that was supposedly the best?

What I finally purchased was a Reqtec 700. Sorry Traeger fans!

EQ=2xTC

Knock, knock
Who’s there?
Adore
Adore who?
Adore is between you and me so please open up!

I have a small extended family. In my family growing up I had two sisters. While one sister (deceased) never had children, my other sister has four (two girls and two boys). My wife also grew up in a family of three children. She has two brothers. Her one brother never had children, and her other brother did not first marry until into his fifties, to a woman who had three daughters. We really do not have relationships with these young women.

Effectively, I have two nieces and two nephews.

One of my nephews recently observed, “I think we’ve all always known that our family and your family were very different from each other—having different beliefs, different temperaments, even a different socio/economic status.” He is correct. The way our families behave is quite different. We previously gathered as one large family every now and again, especially at Christmas when the children were growing up, but that ceased when the glue of our family—Grandma (my Mom)—passed from this earth in December, 2015.

Since then I have used texting as a means of keeping in contact with my nieces and nephews. In sorting through old files I discovered drawings they had given me, when they were young, as well as letters and cards. I scanned these and texted these images to them. In addition, I frequently texted photos of my family members, shared what I was up to, and passed along quotes from what I was reading.

In my mind, I was being an uncle who wanted to stay connected.

Ann Landers once said, “Don’t accept your dog’s admiration as conclusive evidence that you are wonderful.” True! And trusting your own opinion of yourself is even more unreliable!

Wake Up Time
In August of 2020 I was in the midst of planning the Fall Webinar season with the non-profit I serve. My team and I had exciting opportunities to conduct Leadership and Emotional Intelligence Training for university students in Romania, Ukraine, Latvia, Poland and Russia. I sent my nieces and nephews an enthusiastic text about all the work ahead of us.

What was I expecting to receive in return? I don’t really know. What I did not expect is what I received from one nephew. He wrote:

“That’s nice. Congratulations. And I appreciate this as an attempt to stay in touch with us, but I can’t help but feel that a conversation requires inquiries as well as statements. We receive updates on your life and your children’s lives, but I don’t believe you’ve ever asked what any of us are doing.”

Whoa. Whatever it was I thought I was doing was not at all being received as I had hoped.

Emotional Intelligence (EQ)
I train university students in emotional intelligence, which of course includes self-awareness. Huh. I thought I had some. Self-awareness, that is.

Look again at the Knock-Knock joke. It is funny, right? Except, it is also instructive. Sometimes there is a door between us and other people. Sometimes, it is “adore” that separates us. Our English word “adore” comes from the Latin adorare which combines ad—“to”—and orare—“speak.” What we adore we tend to “speak to” or “speak of.” Apparently, when it comes to my nephews and nieces, what I adore is me, mine, and myself.

My son-in-law tells his three daughters this quip when they argue over toys: “Sharing is caring.” I thought that was what I was doing—showing care by sharing. Turns out, we show care by showing we care.

Emotional Intelligence (EQ) is based on two factors: 1) What we see; and, 2) What we do. EQ is about seeing and managing ourselves, but also seeing and managing relationships with other people. There are the four components of EQ:

  • Self-Awareness
  • Self-Management
  • Social Awareness/Empathy
  • Relationship Management

Awareness is seeing. Managing is doing.

In regard to my interactions with my nephews and nieces, I was neither seeing myself, nor them, and managing neither myself nor our relationship.

EQ and You
If you are in independent insurance distribution, or an independent financial professional, your business is people. EQ is a requirement!

A study by the Association of Financial Advisers found that what differentiates leading advisers in the eyes of clients are actually the interpersonal skills and emotional intelligence that complement the adviser’s technical skills. “Clients rated capabilities such as empathy, listening and understanding client needs a massive 82 percent above professional reputation, quality of advice and other factors.”1

Earlier this year, thought leaders in the financial planning space gathered online for the AICPA’s 2021 Personal Financial Planning (PFP) Summit. “Looking to the future, the vast majority of attendees said it will be more important for financial planners to manage their clients’ emotional state moving forward than it has been in the past. And to be successful in the future, the top three most-cited skills planners will need, in addition to technical skills, are emotional intelligence, interpersonal communication, and adaptability.”2 (Author’s emphasis)

I like this definition of EQ:

“Emotional intelligence is that ability you have that allows you to be smart about your feelings and emotions. Those who are emotionally intelligent are also smart when it comes to sensing the feelings and emotions of others.”3

It helps to begin by looking at the background of the word “intelligence.” The term comes to us from two Latin root words legere—to “choose or select”—and inter—“between.”
Combined, these words literally mean “the ability to choose between” options and to make the better choice.

What is the impact of emotions on our ability to make good choices?

  • Managing ourselves: During normal, unemotional times, we can see many options available to choose between. But when a strong emotion rises up in us what happens? That emotion can become so strong it blinds us to other choices so that we only see one option.
  • Managing relationships: Using social awareness and empathy, we can create strong relationships. Making appointments with other people virtually or in person is what we do to build relationships. Practicing empathy is how we do it.

Test Your Level of EQ:
1. Are you someone who listens with your eyes as well as your ears? Do you listen beyond just what is being said by paying attention to the manner in which it is being said? Are you hearing the meaning of what is being said?

2. In your work or practice are you asking questions that convey care and concern when interacting with others? (What I obviously failed to do with my nieces and nephews.)

3. Are you able to distinguish between your personal reactions to facts and circumstances and the reactions of your clients and associates?

4. Are you in the moment, and very present when speaking with others? Or, when they are speaking, are you thinking of what you are going to say next?

5. Do you control your anxieties, anger, frustrations, and disappointments such that they are not influencing what you can see in others?

6. Do you control your own biases? Do you keep yourself from assuming what someone else believes by actively seeking their viewpoints?

Leaning into Empathy
I think the response from my nephew hit me hard because I saw my failure to demonstrate empathy. Empathy is purposefully tuning in and sensing the emotions of others.

“There are three main types of empathy: Cognitive, Emotional, and Compassionate.

  1. Cognitive empathy means putting yourself into someone else’s place and their perspective.
  2. Emotional Empathy means when you feel the other person’s emotions alongside them, like you have their emotions.
  3. Compassionate Empathy is described as feeling someone’s pain and acting to help.”4

Empathy is where independent financial professionals, brokerage general agents, and wholesalers can add a lot of value to the people they serve. The better we can understand why people feel, act, and do what they do, the more successful we will be.

Practicing Empathy:

  • Begin taking written notes of how the people you are working with handle relationships.
  • Take special note of how other people express their feelings in words, how they describe their needs, and what concerns are top of mind.
  • When relating to others one on one use a system that orients you towards others, not necessarily just being friendly and personable but rather curious and compassionate.
  • Practice persistence. People admire someone who does not give up, lose patience, or simply move on.
  • Control your impulses by not interrupting, not filling in another person’s word when they pause or not completing another person’s sentences.
  • Look for opportunities to insert humor and hope.
  • Remember that empathy is not an action. Empathy is an internal commitment that causes you to experience something from another person’s standpoint.
  • When you discern someone’s emotional pain, stand with them, sit by them, and lend just your presence.

Summary
The title of this article is “EQ=2xTC.” This stands for: Emotional Intelligence Yields Twice the Number of Trusting Clients

In May of 2020, the MDRT published a study that found that Americans deem emotional intelligence the most trustworthy quality in an advisor.

“Americans would be more likely to trust advice from advisors who:

  • Listen to and acknowledge their clients’ needs (57 percent)
  • Communicate in easily understood ways (57 percent)
  • Follow through on their word (55 percent)
  • Show they care about their clients as people (52 percent)”5

Bottom line: Unlike IQ which we are born with and cannot change, EQ can be improved. It starts with internal reorientation, redetermining purpose, reevaluating priorities, and choosing to change.

In our roles in financial services we want to influence or inspire others. This begins with being transparent and genuine, by being our true selves. More than friendliness, trust is required. Trust is built through empathy. Empathy leads to genuinely discovering the best outcomes in each situation and finding common ground with people of all backgrounds.

Personal application:
My nieces never contributed to the conversation last August. I have made no progress in their direction. However, I listened to my two nephews. Since I do not live near them, last September I invited them to speak with me over Zoom. Starting then we began to meet for 60-90 minutes on Saturday afternoons twice a month. They appreciate the fact that I am asking questions about them. I promised them that I would act differently than before and am following up on that. They are both avid readers. I asked them if they would enjoy reading a book and discussing it on our Zoom calls. They said they would and suggested the book, “To Begin Where I Am: Selected Essays,” by Czeslaw Milosz.
Not only has my self-awareness improved, but I have also gained close relationships with these amazing young men!

What about you? I invite you to join me in growing your EQ!

References:

  1. https://www.afa.asn.au/news/whitepapers/the-trusted-adviser-2.
  2. https://www.cpapracticeadvisor.com/accounting-audit/news/21212231/the-tops-skills-financial-planners-need-to-succeed.
  3. https://positivepsychology.com/emotional-intelligence-goleman-research/.
  4. https://newplannerrecruiting.com/enhancing-your-eq/.
  5. https://www.mdrt.org/emotional-intelligence.
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