The newest product from one of Canada’s prominent insurance companies goes direct to the consumer, leaving advisors wondering what it all means.
Empire Life launched its new Simplified 10 and Simplified 20 term life insurance earlier this week to great fanfare. The product will be available exclusively through the carrier’s website as well as on a referral basis by licensed insurance advisors.
“The main purpose of this product launch is to reach a group of Canadians whose needs are primarily going unmet by our industry today so that more Canadians can protect their families with life insurance,” Mike Stocks, Empire Life vice president of insurance marketing, told WP. “Providing an online method to purchase life insurance for simple protection needs is a way to reach this group that our industry has been neglecting in the sales channel that they prefer.”
A comment left by “Andrewski” on the LHP website suggests advisors aren’t convinced this move is a win/win for all the stakeholders: advisors, clients, and carriers.
“May be helpful to some consumers, but ultimately this idea carves out the Broker as they are only paid a referral fee if the consumer buys through the click-through option. Insurance is bought (salesman) not sold (online),” wrote Andrewski.
LHP reached out to a couple of insurance advisors – Ken MacCoy in Chilliwack, B.C. and dual-licensed Christopher Dewdney in Toronto – for their thoughts on the move. Their opinions couldn’t be any more different.
“Yes, it’s a good thing. The majority of consumers use the internet to research almost everything (cars, televisions, travel destinations, insurance and investment brokers) before they buy,” says MacCoy. “Life Insurance is no different.”
MacCoy’s clearly not worried about any harmful effects on carriers going direct. Dewdney’s not nearly as confident.
“Even though it’s a term product there are still nuances to it such as renewal premiums, conversion options, maximum conversion date, things of that nature. A young person might go online and see the premium and nothing else,” says Dewdney. “When I go online to purchase something and there’s that very lengthy disclaimer, I don’t read it and I assume you don’t either.”
Life insurance can be a very complicated product and as Andrewski points out it often goes unsold if not for the efforts of advisors like MacCoy and Dewdney.
While Dewdney is concerned that insurance sold over the net could lead to clients owning products that are potentially unsuitable for them, it really comes down to dollars and cents.
“I don’t know what effect it’s going to have for the advisor force,” Dewdney said. “I think that a lot of guys are going to be of the camp of ‘You’re biting the hand that feeds you.’”
“The main purpose of this product launch is to reach a group of Canadians whose needs are primarily going unmet by our industry today so that more Canadians can protect their families with life insurance,” Mike Stocks, Empire Life vice president of insurance marketing, told WP. “Providing an online method to purchase life insurance for simple protection needs is a way to reach this group that our industry has been neglecting in the sales channel that they prefer.”
A comment left by “Andrewski” on the LHP website suggests advisors aren’t convinced this move is a win/win for all the stakeholders: advisors, clients, and carriers.
“May be helpful to some consumers, but ultimately this idea carves out the Broker as they are only paid a referral fee if the consumer buys through the click-through option. Insurance is bought (salesman) not sold (online),” wrote Andrewski.
LHP reached out to a couple of insurance advisors – Ken MacCoy in Chilliwack, B.C. and dual-licensed Christopher Dewdney in Toronto – for their thoughts on the move. Their opinions couldn’t be any more different.
“Yes, it’s a good thing. The majority of consumers use the internet to research almost everything (cars, televisions, travel destinations, insurance and investment brokers) before they buy,” says MacCoy. “Life Insurance is no different.”
MacCoy’s clearly not worried about any harmful effects on carriers going direct. Dewdney’s not nearly as confident.
“Even though it’s a term product there are still nuances to it such as renewal premiums, conversion options, maximum conversion date, things of that nature. A young person might go online and see the premium and nothing else,” says Dewdney. “When I go online to purchase something and there’s that very lengthy disclaimer, I don’t read it and I assume you don’t either.”
Life insurance can be a very complicated product and as Andrewski points out it often goes unsold if not for the efforts of advisors like MacCoy and Dewdney.
While Dewdney is concerned that insurance sold over the net could lead to clients owning products that are potentially unsuitable for them, it really comes down to dollars and cents.
“I don’t know what effect it’s going to have for the advisor force,” Dewdney said. “I think that a lot of guys are going to be of the camp of ‘You’re biting the hand that feeds you.’”
