Life Insurance Managers should 'put a sock in it' about retention & profitability.

Those that are in the space of product providers of Life Insurance are a funny old bunch.

Life Insurance Companies are moaning about how difficult it is to retain business, as clients cancel policies and advisors re-write policies every few years. This means that life offices are not making money on these products.

I have approached a number of them over the last 12 months with a view to altering the structure of the products so that the client gets a better deal and the policies stay with the Life Insurance Companies for longer periods, thus making them more profitable.

Result : The only appetite providers have is to increase commission payments to intermediaries and not to change the product structures. The consumer is forgotten again.

Prediction : When the shareholders start copping on as to what is happening, they will change the structures but it may take a few more years.

In the meantime, I’d appreciate it if the Life Insurance Managers would 'put a sock in it' about retention & profitability.