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...aditional banks, agencies, and stockbrokers who have enjoyed such a lucrative ...rs, insurance industry types, and stockbrokers don't want to see these changes...

...n in 1990 revealed that 80% of stockbrokers responding to the survey rarely as... study found that the majority of stockbrokers’ clients would refer their brok...

...risk its sales force of 14,800 stockbrokers as the company heads straight into...bvious impact, such as displacing stockbrokers or bookstore clerks, the Intern...

... "jolt" and another said it will "change Internet retailing." Evie Black Dykem, of Forrester Research, Inc., said, "It will be the shot heard round the retail world." When the world's largest retailer stakes its claim on the Internet, many predict that life will never again be the same. "The power to navigate the world at the click of a mouse is a force that is transforming our lives like none before," wrote the editors of Business Week. A few paragraphs later, they added, "Anyone with a computer is a citizen of the world-and a richer world at that." The extent of the Internet's impact on life and business can be measured by Merrill Lynch's willingness to place at risk its sales force of 14,800 stockbrokers as the company heads straight into the E-economy. When all of Merrill Lynch's explanations and assurances of protecting its brokers are stripped away, it's clear that the company sees its future on the Net. Auto manufacturers are right there, too. The move to cut costs by cutting out dealers is clear, and it's driven by the possibilities created by the Internet. Whether it's real estate sales or travel agencies, these functions will soon be Net-based. Beyond the obvious impact, such as displacing stockbrokers or bookstore clerks, the Internet is disrupting every aspect of American business. One can surmise that full employment without inflation is possible only in an Internet world, where prices are actually dropping for many products and services. If the individual changes brought about by the Internet are dramatic and far-reaching, they ...

... "jolt" and another said it will "change Internet retailing." Evie Black Dykem, of Forrester Research, Inc., said, "It will be the shot heard round the retail world." When the world's largest retailer stakes its claim on the Internet, many predict that life will never again be the same. "The power to navigate the world at the click of a mouse is a force that is transforming our lives like none before," wrote the editors of Business Week. A few paragraphs later, they added, "Anyone with a computer is a citizen of the world-and a richer world at that." The extent of the Internet's impact on life and business can be measured by Merrill Lynch's willingness to place at risk its sales force of 14,800 stockbrokers as the company heads straight into the E-economy. When all of Merrill Lynch's explanations and assurances of protecting its brokers are stripped away, it's clear that the company sees its future on the Net. Auto manufacturers are right there, too. The move to cut costs by cutting out dealers is clear, and it's driven by the possibilities created by the Internet. Whether it's real estate sales or travel agencies, these functions will soon be Net-based. Beyond the obvious impact, such as displacing stockbrokers or bookstore clerks, the Internet is disrupting every aspect of American business. One can surmise that full employment without inflation is possible only in an Internet world, where prices are actually dropping for many products and services. If the individual changes brought about by the Internet are dramatic and far-reaching, they ...

... to judge the viability of a company's investment philosophy as defined in its investment guidelines. Consider risk in the light of available margins to meet contingencies. Forward Commitments: Companies with large forward commitments in a rising interest rate market can experience severe problems. Separate or Segregated Custodial Accounts for Single-Premium Funds: This is a plus in asset/liability matching and in monitoring investment results. Independent Investment Advisers: Outside expertise may be a plus, especially for companies in which size does not justify a well-staffed, highly professional investment department. Other Business Lines: Avoid companies with trouble in other business lines, as this could spill over and limit performance of their Single-Premium Whole Life products. Renewal Rate Histories: Review of this area can be enlightening relative to a company's abilities and character. Preponderance of Business from Stockbrokers: A company that receives most of its premium from stockbrokers may be handling too high a percentage of hot money. Brokerage: Some financial advisers believe that it's better to go with companies that are either very heavily or exclusively involved in brokerages, on the theory that they are more likely to be focused on meeting the needs of their brokers. That might prove important if you are brokering Single-Premium Whole Life products. This list is by no means all-inclusive, but it is a good summary of the factors you need to examine when you analyze the companies you'll use to write a product like Single-Premium Whole Life insurance. PROSPECTS Single-Premium Whole Life insurance appeals to a variety of prospects. All must have a large sum of money readily available in some form or other, but as we will outline, ...

...Preponderance of Business from Stockbrokers: A company that receives most of its premium from stockbrokers may be handling too high a percent...

... a real challenge, and the search can be costly, whether you conduct the search yourself or pay someone to do it for you. What's more, your hired producer success rate (defined as the percentage of producers who succeed for you in the long term) will be the single most important factor affecting your economic returns for producer hires. The wisdom to know when to cut your losses on a bad hire is extremely valuable, given that most firms have a success rate of less than 50% . CONCLUSION When you look at the complete economics of investing in producers, new hires can be startlingly attractive. Many agency principals have avoided hiring producers because they focused on only the short-term cash flow implications, rather than both the cash flow and the asset value. So the next time some stockbroker calls with a hot investment tip, you can politely hang up the phone knowing that your best investment opportunity-one on which you have insider information!- is reinvesting your profits back into your agency. This article is reprinted with permission from the National Underwriter, P&C Edition. Kevin M. Stipe, CPCU is senior vice president and principal of Reagan Consulting, Inc, an independent management consulting firm working with insurance agents, brokers, companies, and financial institutions. He can be reached at Reagan Consulting, Inc, 7 Piedmont Center, Ste. 417, Atlanta, GA 30305, (404) 233-5545, fax (404) 237-5996, Web site reagan-assoc.com . Login or Register (for FREE) to gain access to thousands of other great articles. Need more reasons to join ...

... retirement, annuities come into greater demand. You could prospect among several basic groups: Parents of graduating college students Employees receiving 20-year awards (or any higher number) at work, in organizations, or elsewhere Life insurance policyholders considering reductions in coverage Friends or relatives of retirees Contributors to charitable causes-tax advantages are often available to donors who combine contributions to retirement plans Owners of any retirement plans, such as IRA, Keogh, 401-K plans, etc. Another finding of the LIMRA study indicates that Life agents do not write as much of the annuity market as they do the Life market. Although career Life agents write 80% of the Life business (PPGAs, brokers, and others write the rest), career agents wrote only 65% of annuities. Fourteen percent of the annuities were sold by stockbrokers, 11% by PPGAs and brokers, 7% by banks, and 3% by mail and other means. Sales sources of annuities are more splintered than those of Life, indicating that the P/C-connected annuity seller is less likely to find strong allegiances to competitors. People will buy annuities from a wide range of salespeople. You should be in the forefront, directly or through an associate who is competent in annuities. No one is more ideal for this sale! You can carve a niche for yourself by concentrating on annuities. Your target market doesn't have to be rich; it can be solidly middle class. Define the best prospect groups, and get your piece of the annuity pie. Dave Goodwin, a former P/C agency principal, is an insurance cross-selling consultant ...

... a real challenge, and the search can be costly, whether you conduct the search yourself or pay someone to do it for you. What's more, your hired producer success rate (defined as the percentage of producers who succeed for you in the long term) will be the single most important factor affecting your economic returns for producer hires. The wisdom to know when to cut your losses on a bad hire is extremely valuable, given that most firms have a success rate of less than 50% . CONCLUSION When you look at the complete economics of investing in producers, new hires can be startlingly attractive. Many agency principals have avoided hiring producers because they focused on only the short-term cash flow implications, rather than both the cash flow and the asset value. So the next time some stockbroker calls with a hot investment tip, you can politely hang up the phone knowing that your best investment opportunity-one on which you have insider information!- is reinvesting your profits back into your agency. This article is reprinted with permission from the National Underwriter, P&C Edition. Kevin M. Stipe, CPCU is senior vice president and principal of Reagan Consulting, Inc, an independent management consulting firm working with insurance agents, brokers, companies, and financial institutions. He can be reached at Reagan Consulting, Inc, 7 Piedmont Center, Ste. 417, Atlanta, GA 30305, (404) 233-5545, fax (404) 237-5996, Web site reagan-assoc.com . Login or Register (for FREE) to gain access to thousands of other great articles. Need more reasons to join ...