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New distribution plans can increase sales

Article Abstract:

Managing the distribution channel is one of the main ways life insurance companies will improve their competitiveness. Nontraditional distribution channels, such as banks and fee-based financial planners, are poised to capture large shares of the insurance market, and it will be necessary to develop alternative distribution methods to keep clients and acquire new customers. Life insurers should consider their product manufacturing and distribution functions to be separate operations. Any changes will have to meet customer needs, deal with market dynamics and sustain company goals.

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Distribution reform cuts direct path to efficiency

Article Abstract:

The life insurance industry will need to overhaul its distribution system to survive in a rapidly changing marketplace. Cost inefficiency is one of the main reasons for failures in insurance distribution systems. Other performance areas that have become weakened by an aging distribution model include the retention of insurance agents and control of the product channel.

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Clarify tax consequences before trading policies

Article Abstract:

Those financial planners who are contemplating trading clients' individual life insurance policies for second-to-die policies should consider the possibility of cost change and unexpected capital gains. Under Section 1035, an exchange of this type would include some taxes and would result in some reporting requirements on any gain.

Management, Taxation, Column

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