Are You a Need Or Greed Annuity BrokerIt all often starts with the trade financial and insurance publications. Check out who is trying to attract the attention of the annuity brokers. The insurance publications rarely show annuity advertisements that deal with the benefits the prospect/client will receive. You would think that would be the insurance companies' main concern. WRONG. The insurance companies' goal is to make plenty of money. To achieve this goal they need the insurance annuity agent or broker to sell their products.In turn the use the emotion that attracts the most attention. There is extreme competition for contracting higher producing annuity agents. My current analysis shows this: Direct mail solicitation for selling annuities is more than twice as high as any other product. In looking at financial and insurance publications, it appears advertising competition becomes around five times as great. The annuity ads in these insurance publications only focus on two of the major six emotions. They are Greed and Need. The Greed advertisements to an insurance annuity agent focus on commissions and frequently the all expense paid trips or excursions. The Need advertisements are directed toward gaps or policy feature innovations that "none of their competitors" supposedly comes close to having. THE MOST COMMON EMOTION Based on quantity of total annuity producers, the GREED emotion of an insurance annuity agent comes through the strongest. An annuity purchaser, who does not shop around, buys what the agent or broker offers. Therefore, the product shown is most often the one paying the seller the highest commissions. Here is why. The agent may have one annuity paying 4% commission and another paying out 6%. If the annuity policy sold is for $50,000, the commission would be $1,000 higher when 6% commission is paid. These agents make up 60% of all annuity writers, and have an average of 5.7 years experience. The majority of the Greed Emotion brokers tend to place their annuity business with one annuity insurer. |
