What To Do When They Blame You For A Product Line Not Selling
These are the times that product pros dread–the Hard Times. The times when trendy products and even entire classes of product lose their sales luster.
Those who championed the products–agency- or company side–dread these times for company and personal reasons.
On the company level, they fear the financial harm the underperforming products may inflict on the companys bottom line. They fear the slow sales will crimp their firms ability to serve existing customers. And they worry that co-workers who helped push the product may suffer for their loyalty and support.
On the personal level, they fear theyll be blamed for the poor results. They fear being ostracized. They fear a Pink Slip will slide under their door. They fear the effect on their families. They fear the "where next?" question.
In my talks with insurance people this year, Ive learned all these fears are out in full force. Why that is, and what can be done about it, is my topic here.
You should know, going in, that I have no simple pat-on-the-back to offer. No quiet "there, there, now–everything will be all right."
Lets get real. When "they" blame you, it can get pretty rough. And why not? If you sell or develop financial products, you are white-water rafting some of the time, and that is risky business. It takes more than reassurance to get through the rapids. It takes skill, hard work, and experience. More on that later.
First, lets recap why insurance teeth are chattering. Mainly, its news items like these (emphasis added is mine):
The VARDS Report, a Rosewell, Ga., service of Info-One, reported first quarter 2001 total premium flow for the variable annuity industry was down 23.8% over first quarter 2000.
The Advantage Group, Maryland Heights, Mo., said the equity index annuity industrys first quarter 2001 sales were down 16.1% compared to first quarter of 2000.
LIMRA International, Windsor, Conn., said its first quarter 2001 individual life sales survey found the industrys sales increased 4% over first quarter 2000. But while variable universal life and universal life showed strong premium growth, term sales saw a sharp decline, it said. Also, both face amounts and number of policies sold declined across the board.
JHA, Portland, Maine, in its annual group disability market survey of the industry, has said that while long-term disability sales had a "sharp increase" in 2000 (up 18% over 1999), short-term disability sales "slowed noticeably."
LIMRAs 11th long-term care market study found some good news, that the number of Americans covered by employer-sponsored LTCs grew 19% in 2000. But it also found the number of new employer groups offering the product declined by 6% from 1999.
Moreover, results at certain companies are particularly bad in one product line or another. Some once-stellar products just arent moving as fast right now, Im told.
