Insurance Consultants for the Modern Times

In early August 2017, Holliswealth Insurance Agency Ltd. (which is currently owned by Scotiabank) will be transitioning to it’s new home at Industrial Alliance.

Currently, Investment Advisors (IA’s) that work under the Industrial Alliance umbrella of companies (FundEx, Investia, IA Securities, etc.) use National Financial Insurance Agency (NFIA) as their MGA.  Currently, NFIA does not have an Insurance Consultant (IC) team.  With the acquisition of Holliswealth Insurance Agency (HW), NFIA has inherited one of the strongest teams of insurance professionals in the Country.  But what does an Insurance Consultant do?

When I joined Holliswealth five years ago my goal was to meet with as many IA’s as possible and find out why so little insurance was issued to their clients each year.  One of the first things I learned is that IA’s are very uncomfortable speaking to their clients about death, disability and sickness.  IA’s often commented that they can’t “keep up” on the products (too busy managing investments). With those comments in mind, I asked why they chose to not work with IC’s on a regular basis.  Below are some of the main responses:

  1. Transaction based Selling: IA’s feel that IC’s are too transactional.  Traditionally, there was no needs analysis or any financial justification for life products.  Moreover, living benefit products (ie. long term disability, critical illness and long term care) were not being discussed with clients at all.
  2. Concept Selling: IC’s have a reputation for selling an idea or concept.  For example, “do you have any clients with over $200,000 of money in their non-registered account?  If so, let’s show them (insert insurance product)”.  IA’s want their clients to be taken care of, not sold an insurance idea.
  3. No Relationship: IA’s feel that the IC is not available for education, support or training.  When the IA calls an IC, the IA feels that they must commission split with the IC.
  4. Turnover: Given the sales-based approach, these ‘experts’ would be replaced every 2-3 years.
  5. Case Size: IC’s have a reputation of asking to sit with your ‘best clients’.  Too much emphasis on the large case, not the typical family

Times have changed!  What does an Insurance Consultant do?  Specifically, what does my firm do?  Below is a table listing all of the steps taken by my firm for each client.  Ask yourself, do you take the time to do this with your clients?

IC Chart

Naturally, I would expect an IA to ask me ‘how much does this cost”?  The answer is simple.  Insurance Consultants work on a split case basis.  When an insurance application is submitted, the IC and IA split 50/50 on the insurance application.  The IA’s compensation hits their own grid/corporation.  Also, the IA is also named the ongoing servicing agent of record (unless they opt out).

I’m actively introducing myself each day on LinkedIn (I may even call unexpectedly).  If you would like to learn more about the process, the team and how we integrate with your firm, I would love to hear from you.  Kindly email me at