LIMRA 02 26 15 ver 3_3 final ver 2a Copy

WOULD YOU LIKE FRIES WITH THAT?

EVERY DAY MATTERS.®

BANNER. WILLIAM PENN.

LIMRA DISTRIBUTION CONFERENCE FOR FINANCIAL SERVICES February 26, 2015 Grant Andrew VP, New Market Development Legal & General America

ADVENTURES IN CROSS SELLING.

PREPARE TO BE SOLD. 2

• What is cross selling? • Where are the opportunities

in our industry? • Why cross sell? • Who’s open to a cross sell

recommendation?

Legal & General America – For internal use only. Not for use with the public.

THE BIG PICTURE.

3

Sell more to a new or existing client.

DEFINITION

Retain a client or increase client purchases.

OBJECTIVE

Disturb or lose a client.

RISKS

Combine cross selling with up selling.

LARGE BUSINESS STRATEGY

One platform / product sold by multiple industries or distribution systems.

SEGMENTATION


CROSS BUSINESS SERVICE SELLING.

4

Manufacturer Intermediary Distribution Consumer Segment


5

Direct To Consumer

Middle Markets New Clients

Independent Broker Dealers

Affluent Markets New / Existing Clients

P & C Healthcare

Middle / Emerging Markets New / Existing Clients

CROSS DISTRIBUTION AND SEGMENTATION.

Career Independent Distribution

Super Affluent / Emerging Markets New / Existing Clients

Wirehouses Banks CPAs

Super Affluent / Affluent Markets Existing Clients BGAs

MGAs Carrier


CROSS SELLING TO EXISTING CLIENTS.

13.4 14.3 13.5 11.6 12.1 12.4 13.1 13.6 13.9 14.5 15.1

$0

$5

$10

$15

$20

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(Ann

ualiz

ed P

rem

ium

) Bill

ions

As Reported Forecast

Source: LIMRA 4th Quarter 2012 preliminary results ($12 Billion in Life Sales is based on LIMRA projecting 30% of the sales)

274 million life insurance policies in force! Statistics portal

6 Legal & General America – For internal use only. Not for use with the public.

Source:

US DEMOGRAPHIC OPPORTUNITIES.


8

WOMEN.

51% of population 85% of consumer purchases 60% of wealth in US

Source: THENEXTWEB.COM 2012

CULTURES.

15M Asian 51M Hispanic

39M African American 12-32M LGBT

320M Americans 82% live in cities

Source: Wikipedia 2012 and 2013

157M Facebook 500M Twitter 259M LinkedIn 1B YouTube


SOCIAL MEDIA.

GENERATIONS.

Target 78% of US 82M Gen X 76M Gen Y 79M Baby Boomers

Source: LIMRA Life Insurance Ownership Across the Generations August 2011

IMPLICATIONS.

• Women matter • Generations matter • 71% of US population are minorities including women

• How to reach them matters

9



WHY CROSS SELL? • Retain clients? • ROI? • Client satisfaction? • Something else?



FIVE REASONS. • Acquisition costs

• Retention

• Market Share

• Diversification

• Satisfaction

11

6-7 times more expensive to acquire new client

5% increase can increase profitability by 75%

Products per Clients per line: 6.1 retail banking, 6.8 wholesale banking, 10.3 wealth management 80% of future revenue can come from 20% of customers

80% brag about superior service, 8% of customers agreed

Source: Acquisition Costs: Bain & Co and HBR, Captora 2012-15, Retention: Zero Defections: Quality Comes to Services- HBR, Sept-Oct 1990, Market Share: February 13, 2012 Forbes; Wells Fargo, Diversification: Gartner Group, Entrepreneurs 11/02/12, Satisfaction Forbes.com IBM, 2011 study

$7 priceline.com vs.

$315 Sprint PCS



WHO’S DOIN’ IT? 12

Suggestive Marketing Similar clients purchased?

Bundling Up-selling Something to drink?

Complete Line Marketing Head-to-foot apparel!

Upscale Marketing Shoes to match your outfit?

On-boarding Bundling Do you need???

HOW DOES IT APPLY TO LIFE INSURANCE?

• Client process reviews.

• Mortgage refinancing and term insurance.

• Right amount.

• Want to add an LTC rider?

• Cost of Living rider?

• Complete insurance product line.

• Complimentary products and riders.

• Products for retirement.

• Annuities, LTC, IUL etc.

• Client satisfaction reviews.

• Proactive on-boarding calls.

• What else does the client need?

HOW TO DO IT. FIVE STEPS 1. Segment customers 2. Measure purchases 3. Identify those apt to buy 4. Target stores / regions 5. Develop and execute

campaigns

13

FIVE PRINCIPLES 1. Measures/ Alignment 2. Sales support 3. System integration 4. Annual plan 5. Products


OPPORTUNITY. 14

#

Demographic Segment

US Population (Wikipedia 2014-15)

Percent with Life Insurance (LIMRA *)

US Pop Uninsured

US GDP $12-14 Trillion

Growth Expectations (Wikipedia 2015)

Women/ Minorities 71-75% 18-54% 9-90M $8.5-10 T-

60-75%

1 Women 158.6M/51.0% 43% 90M $5-7T 50+ control $19T net worth*

2 Hispanics 50.5M/16.4% 53% 23.73M $1T 30.6% of US / 2060

3 African Amer. 38.9M/13.0% 54% 22.68M $1T 14.7% of us / 2060

4 LGBT 12-32M/ 6-10% N/A 9-15M $790B N/A

5 Asian 14.6M/4.8% 47% 9.54M $780B 8.2% of US 2060

Generational 78%

1 Boomers 79M/ 25.6% 43% 45.03M 70% US

net worth 10,000 retiring daily

2 Gen X 82.1M/ 26.6% 33% 52.93M N/A N/A

3 Gen Y 76M/ 24.6% 18% 54.72M N/A N/A * Other Sources: LIMRA’s The Hispanic American Financial Experience 2014; Marketing to hispanics.net: Say Hello to Hispanic Shoppers: Marketing to US Hispanics,

January 3, 2014; Black Enterprise.com: African American Buying Power November 28, 2013; LIMRA’s LGBT Financial Experience, August 2012; LIMRA’s Marketing to Chinese Americans and Asian Americans 2003: she economy.com


ABOUT WOMEN. 15

• Talk straight. • Keep it simple. Learn what matters to her. Be honest and caring.

• Listen to her. Talk to her, not at her.

• Give her examples to which she’ll relate.


A CAMPAIGN. 16

Within 60 Days of Renewal

Conduct an annual review.

Within the 1st Qtr Send a thank you note. Include a simple sales idea.

Within the 2nd Qtr Send a card to say she’s appreciated (Mothers day). Ask if she’d like to talk about family coverage.

Within the 3rd Qtr Try a newsletter that’s purely educational.

Within the 4th Qtr She’s over 50, send her information on estate planning.

• Support with online chat, dedicated 800 number, screened / trained WOMEN agents

• Send the marketing to both potential / existing clients

QUESTIONS? 17

Thank you.


THE BIG PRINT. 18

Legal & General America life insurance products are underwritten and issued by Banner Life Insurance Company, Urbana, MD and William Penn Life Insurance Company of New York, Garden City, NY. Banner products are distributed in 49 states and in DC. William Penn products are available exclusively in New York; Banner does not solicit business there. Not for public distribution. For agent/broker use only. 15-023


LIMRA 02 26 15 ver 3_3 final ver 2a Copy

Documents

internal use

cross selling

us source

cross sell recommendation

cross business service

cities source

client satisfaction

client purchases