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(June 23, 2003) The Million Dollar Round Table (MDRT) annual meeting kicked off in Las Vegas on June 22 and runs through June 25. Advisor.ca caught up with long-time MDRT member David Wm. Brown, columnist for Advisor’s Edge, before the conference, to get his insight on the state of the insurance industry and what he hopes to get out of this conference:
Advisor.ca: In your opinion, what are the most pressing issues in the insurance industry?
David Wm. Brown: The big issue is consolidation. We are running into service problems and issues with head-office people in the insurance firms. These are new people who weren’t around when certain policies were designed and now they don’t have a clue what to do with those in-force policies.
Advisor.ca: How has this affected your work?
DWB: Now advisors have to explain to them how to administer those policies. Companies don’t care about the in-force policies, they just want new sales. But they need to understand the nuances of those contracts already in place. For example, some universal contracts can be very different. But some people assume one contract is the same as the next.
Advisor.ca: What have you done to ensure a smoother flow?
DWB: We talk to actuaries and underwriters before we consider using that company’s products. We look for some continuity. Clients shouldn’t be concerned about whether I am around next week or not. They should still have confidence that someone knows what is going on and that person should be at the head-office level.
Advisor.ca: You have been attending the MDRT conference for more than 20 years now, how are such issues like this one tackled at the conference?
DWB: They are not going to talk about these kinds of challenges at the MDRT conference because the conference is so global in its attendees. Everyone has different tax laws, rules, scenarios and regulation. But the effects of consolidation are what most Canadian insurance advisors talk about often.
Advisor.ca: So if not a discussion of regional issues, what do you hope to get out of this conference?
DWB: I think everyone should go to at least one MDRT conference if they want to be a player in this industry for a long time. This is a very difficult industry to be in. There are a lot of rejections we have to face and it is certainly not an easy place to hang your hat. When you come to MDRT meetings where there at least 5,000 people from all over doing the same thing as you, you are encouraged to keep going. That is very strong. The focus is family and insurance. It is basic in its understanding. The conference gives real confidence to your people and serves as a reminder for the veterans.
Advisor.ca: Where can the MDRT conference improve?
DWB: It is a challenge to present a program that is interesting and useful year after year. I am pretty impressed by the meeting most of the time because the meeting appeals to the common denominator: first-time members as well as 50-year members. But it can be difficult to run a meeting for all people because of the involvement of so many people. [Catering to all the people] has diluted the effectiveness of the meeting as an educational forum. The MDRT conference has become more generalist and I believe there is no room for a generalist in this industry. Advisors just cannot be all things to all people. Take the Conference for Advanced Life Underwriters (CALU)— it is all-Canadian, it is high-profile, politically involved and offers very advanced programming that is specific to one field of expertise. I think for MDRT to be successful it has to present programming for different levels. It does have an “advanced” rating to some of its seminars, but it is not as advanced as CALU.
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Filed by Sheila Avari, Advisor’s Edge, savari@rmpublishing.com.
(06/23/03)