Do You Still Need Comparisons?
From time to time when we send renewal notices, we hear back that policy comparisons are no longer useful because many insurers have left the market and there are fewer policies to compare. We think this is shortsighted on several grounds.
1 Checking LTC Quote Plus for a typical state, we find 10 policies from 8 different carriers. Some of these are not sold through brokerage, but ignoring them misses the point that they are available to your client and a competitor can and will show them. A primary value of our comparison tools is to give you an overview of the entire market, both the policies you sell and the ones you don't. You need to know how your offerings stack up against others, and having this information at your fingertips makes you the authority. You can tell your client about any policy they happen to ask about, whether or not it's one you are contracted to sell. They don't have to go to another agent to learn about policy A or B.
2 Even if you sell just 3 policies from 2 carriers, the best choice for one client may be the least beneficial for the next client. Policies are designed with "sweet spots", demographics that the carrier wants to target over and above others, and therefore offers coverage at attractive rates. The best choice can also depend on policy options chosen, and how these options are priced for a given age, gender and marital status. Why not give your client the benefit of doing the comparison and optimizing their choice?
3 It can be argued that you have a fiduciary obligation to help your clients make their best financial decisions. Evidence that you used objective third party comparison tools in guiding them could provide legal protection down the road in the face of possible adverse consequences.
4 Finally, the cost of having access to these comparison tools is minimal. If you pay $300 for the tool and it helps you sell one additional policy with an annual premium of $3000, what is your return on investment?
