Ready to navigate our industry’s changing landscape
Regulatory shifts and other market forces colliding promise to transform our industry in the coming year. It creates a level of ambiguity that may make many financial professionals uneasy, but for those who can tolerate change, the next 12 months can be a time to prove our worth to customers and thrive.
The general sense of uncertainty we’re experiencing is not exclusive to insurance companies or brokers; it’s ubiquitous. Customers are experiencing it too. And the professionals who are able to keep their wits about them, think critically about what clients need in order to be better prepared for the future, and take steps to adapt to our changing landscape, have the potential to position themselves well. It may mean learning about new products or looking at existing products through a new lens. It may require business models to change. But if there’s ever been a time for level heads to prevail, this is it.
At OneAmerica®, we’ve seen our Care Solutions suite of asset-based long term care products take off on an upward trajectory, and that trend is continuing as we enter the new year. These products have been around for more than two decades, which means we’ve seen how they perform on a long timeline, through market twists and turns, and compared to traditional health-based long term care products.
If you read Dennis Martin’s September, 2016, Broker World piece, “Finding Opportunities In The Fiduciary Rule,” you may recall that Care Solutions was identified as a viable option to help restore or even grow revenue in the current environment. Being able to introduce a solution that is stable, predictable and guaranteed may be ideal for financial professionals and clients alike, especially as we seek out ways to calm the chaos.
Of late, there has once again been a spate of negative press around traditional LTCI—causing some to wonder about the future of long term care insurance. But most of the highly publicized, negative long term care conversations fail to draw important distinctions between traditional health-based long term care products and asset-based long term care solutions. While lapse rates and long-term investment returns that have been the primary drivers leading to the financial woes for many LTCI insurers, these issues have not affected asset-based long term care protection in the same way or nearly to the same degree. There are a number of reasons for this, but the bottom line is that asset-based products have stood the test of time and remain poised for growth to meet the increasing demand of baby boomers for long-term care solutions.
And asset-based long term care has evolved. While these products have their roots in single-premium life insurance policies, the range of product offerings has expanded to include more recurring premium options and they are generally priced with very low ultimate lapses and low interest rates. No single solution will ever lead to retirement income stability for every client, but as professionals acting in our clients’ best interest, it behooves us to explore all options–especially the ones that can help clients address the rising cost and growing need for long term care.
To keep pace with the increasing demand we’re experiencing in the asset-based long term care space, OneAmerica has expanded our Care Solutions distribution channels. And we enter 2017 poised for even more growth with a team of seasoned industry veterans at the helm, led by Chris Coudret, vice president and chief distribution officer. To borrow a line from Chris, “When it comes to getting more educational resources and more solutions in the hands of consumers, our foot is on the gas and we’re not slowing down.”
As long as our industry has been in existence, it has been in motion—constantly evolving to meet the needs of the day. At times it moves faster than others and the current rate of change can be unsettling, especially to younger professionals who have not experienced this before. But those who focus on helping clients prepare for the future, continue to learn first-hand about new products, and evaluate and adapt their portfolios or business models will create opportunity and establish the strongest advantages for their businesses and their clients. And our growing team is committed to working with those professionals along the way. [PF]
OneAmerica® is the marketing name for the companies of OneAmerica.
Patrick M. Foley, CLU, ChFC
is president, individual life and financial services for the companies of OneAmerica. In his roll he oversees all sales, service, marketing, product development and profitability for OneAmerica’s life, annuity, and asset-based long term care products. In addition, Foley is responsible for OneAmerica’s retail general agency system and its broker dealer OneAmerica Securities. Earlier in his career, Foley built and grew a top 10 general agency and has served in senior executive roles at Genworth Financial, Allianz Life of North America and Prudential. An avid supporter of the industry, he has also enjoyed leadership roles in GAMA and the CLU Society, as well as having been an International board member for LIMRA. Pat earned a Bachelor of Business Administration in Finance & Insurance from the University of Iowa and is a Chartered Life Underwriter and Chartered Financial Consultant. Foley may be reached at One America, One American Square, P.O. Box 368, Indianapolis, IN 46206-0368. Telephone: (317) 285-4927. Email: email@example.com.