“Agents” need new client acquisition strategies
I’d like to “move on” but the implications arising out of the March 7 complaints issued by Massachusetts Secretary of State, William Galvin, against two annuity producers won’t let me. Give me rest! In the near future we’re likely to see some remarkable transformations in how annuity producers present themselves (and their businesses) to prospects.
In recent days I’ve spoken to a number of senior executives of life insurance companies about these complaints and what they imply for the future of “agent” marketing. I place the word agent in quotations because most agents long ago stopped using that word. They abandoned the agent identity in favor of taking on new prospect-facing identities such as Medicaid Expert, Estate Tax Reduction Specialist, Senior Advisor, Financial Planner, and Safe Money Specialist, to name just a few.
To most producers, agent is a quaint term from the past or simply a legal term to describe their relationships with one or more insurance companies. It has no relevance to today’s world. Or, at least it didn’t until March 7, 2007.
One of the criticisms leveled against the two Massachusetts agents was that they effectively disguised their true identities- and true motivations- by falsely branding themselves as something other than annuity agents. The many producers who have embraced marketing strategies similar to those used by the subjects of Galvin’s complaints have been left to worry, “Am I next?”
Yet, arguably there is no protection by abandoning currently popular marketing strategies in favor of redefining the agent’s image to, well, agent. The reason is that in the normal conduct of an annuity producer’s work, he or she also runs the risk of being cited for acting as an unregistered investment advisor.
The rules of the game are changing and no one yet knows their final form. One thing is certain, if currently popular producer marketing strategies are eliminated, annuity agents will need new client acquisition strategies as they continue an uphill fight to market their products in a climate that is both interest rate challenging and a regulatory minefield.