InsurerCPA Alliance Expands

"There's a pretty extensive due diligence done when appointing agents to work with the RSM McGladrey group," adds Mike Pinkans, vice president of sales and promotion for National Life.

"We're looking for the agent who maintains a significant level of production, and also has a process that falls in line with providing solutions–rather than the sale of product," says Steve Mulder, COO of the RSM McGladrey Insurance Alliance.

Mulder explains that when a client has a situation that may involve the use of life insurance as a solution, the case is reviewed by an internal advisor. "We have licensed advisors who are both securities and insurance licensed."

From that stage the advisor evaluates the case and refers it to one of the licensed alliance agents, he continues.

The agents affiliated with the alliance are licensed with all three carriers, and are also able to use other carriers through a brokerage arrangement in the event none of the primary carriers have the product to fit the situation, he says.

Many observers say the biggest challenge agents face when dealing with CPAs–whether there is an arrangement in place or not–is building the trust between the CPA and the insurance agent.

"It takes a lot for a CPA to trust an agent in front of his client," says Dehner.

Stevens also feels it takes some work to raise a CPA's comfort level about including life insurance as a component of an estate plan solution.

Pinkans agrees, "The biggest problem you have with any CPA is to get them to consider that life insurance is needed as part of the overall planning process."

Mulder says there are some obvious barriers, since insurance is so different from the accounting business. But RSM has been overcoming those barriers and is seeing some success in the program, he says.

"The evolution of the relationship has gone very well in building the trust necessary to make those referrals," he says.

Last year, approximately 80% of their partners participated in the referral program, and Mulder is expecting that to increase over the next year.

"Once they go through the process and see the value added, the partners feel good about it," says Benning. "Once someone has a successful referral, they become a strong supporter of the program."

Reproduced from National Underwriter Life & Health/Financial Services Edition, May 20, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.