S&P puts spotlight on middle-market sales

Wheeler, the MetLife executive, said he thinks "change is coming," because digital marketing is so powerful, and because consumers are more willing to buy through the Internet. But he said designing life products for Internet-based middle-market distribution systems can be tricky.

Few middle-market consumers wake up and decide they want to buy life insurance, Wheeler said. Those who do "are generally not great life risks (takers)."

Even though selling through the Internet may be cheaper than having a real person make the sales, an insurer may need to charge higher premiums for coverage sold through the Internet to compensate for anti-selection risk, Wheeler said.

Also during the session, the executives pointed out the following:

• Williams said Primerica wants to "serve the middle-market," not just "sell to the middle-market." In some cases, he said, he sees other companies in that segment selling what believes are products with a low financial nutritional value, such as term life products with a very low death benefit.
• Janke said Aflac is selling more products on a guaranteed-issue or simplified-underwriting basis. The claims may be higher, but the agents who sell the products are happier and more productive, he said.