The Hartford Financial Services Group Inc. has begun recruiting independent insurance agents to sell fixed life insurance products while retaining their own autonomy.
The Hartford Financial Services Group Inc. has begun recruiting independent insurance agents to sell fixed life insurance products while retaining their own autonomy.
Agents in the Monarch program, which officially starts Feb. 1, will treated much like personal producing agents in that they'll be paid through commissions, but will continue to act as independent brokers and can offer products from other insurance companies.
“We want to build a relationship with Main Street-based life professionals,” said Brian Murphy, The Hartford's executive vice president of the individual-life-insurance division. “Monarch recognizes that they're a life insurance expert and it doesn't just give them product, but also access to underwriting.”
The firm would not disclose the exact commission that agents would receive, but Bob Primmer, senior vice president of independent distribution at The Hartford, said it was very competitive with what's “on the street.” Agents in the program will only put their fixed business through The Hartford. Any variable universal life products would be cleared through the producers' own broker-dealer, noted Mr. Primmer.
The Hartford is aiming to have as many as 400 new brokers in the program by the end of the year. Thus far, the program has been active for a week, and the carrier said a number of agents are already signed up for Monarch, but would not indicate how many.
The establishment of the Monarch group marks The Hartford's first foray into bumping up its life insurance sales through the independent-agent channel. “We've been a boutique life insurer in the past, but not as accessible in the independent life insurance base,” said Mr. Murphy.
However, the strategy isn't intended to clash with The Hartford's presence in the wirehouse and independent broker-dealer space. “This is an ‘and' strategy; we don't see any channel conflict here,” he added.
The Hartford is also stepping up the efforts of its employee sales force, particularly its account executives. Those individuals are based in different territories and reach out to independent life agents seeking advanced marketing support. They also act as consultants to other financial services firms or do point-of-sale work with advisers who aren't familiar with selling life insurance, said Mr. Primmer.
Through the account executives, the carrier will reach out directly to independent agents instead of going through the brokerage general agency route. A brokerage general agency manages contracts with life carriers and then establishes contracts with agents who want to sell a particular carrier's product.
“The large-BGA space is very crowded; we didn't want to be commoditized,” Mr. Murphy added, noting that Pacific Life Insurance Co. is The Hartford's most formidable competitor in the independent agent space. “If we're trying to penetrate centrally or by dealing with remote wholesalers and relationship managers, you can't have 800 relationships.”
