Industry Leader Forum: Genworth Financial

2012 Outlook: Opportunity is in the picture. It’s the new year—traditionally a time to examine the past year and look to the future. As we look back on 2011, it’s clearly been a challenging year—difficult economic and housing market conditions, high unemployment and financial market turmoil have all taken a toll on the savings and financial well-being of American families.
For those of us in the life insurance business, the protection afforded by our life insurance and long term care insurance products and our annuity products offering guaranteed income has never been more important as a tool for addressing the financial security needs of families and retirees. At Genworth’s U.S. life insurance companies, our focus has been, and remains, on providing the very best life insurance, annuity and long term care insurance products and services that consumers want—and our distribution partners can sell, today and in the future.
Looking forward into the new year, we know that we Americans are underinsured and underserved by our industry. More than half of Americans with household incomes between $50,000 and $250,000 are without life insurance, and those with insurance have only enough to cover 3.6 years of income, leaving their families without ample protection (2010 U.S. Life Insurance Study, LIMRA).
These are target market opportunities for producers to seize. Our 2011 study—Genworth Life Jacket Study, Seven Key Insights to Help Close the Coverage Gap—confirmed that agents have a clear opportunity to help consumers better understand their insurance needs and must pay attention to consumer desires. More than 60 percent of those who currently own life insurance said they wanted to meet with their advisor at least once a year.
However, of those who desire that frequency of contact with their advisor, only 37 percent indicate that they are actually receiving it. The study also revealed that while there are excellent product offerings that meet consumer needs, there has to be a more effective way of doing business—giving advisors and agents insights needed to educate consumers about their insurance needs and motivate them to secure their financial futures.
Genworth remains committed to offering solutions designed to meet the financial security needs of the “main street” and emerging affluent markets. We are focused on helping our distribution partners create opportunities to maximize sales and revenue by aligning Genworth tools, resources and support to help you grow your business—whether you sell life insurance, long term care insurance, linked benefit product, fixed annuities or any combination of our products.

Life Insurance. We remain the leading carrier in the number of life insurance policies sold in the brokerage channel, according to LIMRA’s Third Quarter 2011 Industry Report. To further our penetration in the emerging affluent market, we have refined our permanent universal life (UL) insurance product portfolio with GenGuard and Colony LifeLong UL products. We will broaden our offerings and focus on driving awareness and adoption of our permanent UL products to strengthen our overall position in the life insurance market.
To benefit you and your clients, we couple our product offerings with differentiated service that helps you make the sale with ease, speed and efficiency. For example, our Life Quick Request fulfillment platform delivers faster service and higher placement for your policies, allowing you to focus on sales rather than business processing.
On the underwriting front, we have updated our risk assessment protocols where this makes good business sense and aligns with our product pricing to ensure we are here for the long term. Last year, we introduced a new cardiac evaluation team and improved our financial underwriting guidelines to support your higher face sales. Our team of underwriting experts delivers holistic evaluations and sound decisions based on our proprietary research. This type of multifaceted risk analysis will become increasingly crucial as we serve the needs of the baby boomer population—most critical to the growth of the life insurance sector.

Long Term Care Insurance. The Genworth name and quality long term care insurance are synonymous. Our commitment to caregivers and outreach through our myriad of community activities in partnership with national organizations like the Alzheimer’s Association enable us to keep a finger on the pulse of aging boomers and better forecast future needs.
Our long commitment to independent brokerage and serving your clients remains as strong as ever. By continuing to offer the right products and services and the right price, agents trust us and know we stand behind every policy written.
In 2011 we rolled out an innovative suite of new products and services that has been quickly gaining adoption from producers and kudos from consumers: Privileged Choice Flex, which allows customers to choose an LTC plan that best suits their lifestyle and budget, and My Future, My Plan, a flexible LTC product designed exclusively for AARP members.
Long term care insurance has traditionally been purchased to help individuals protect their families and finances should a long term care event occur in the future. Now, with the unique features in our enhanced product offerings, insureds will have access to wellness and caregiver support services benefits immediately.
In collaboration with Mayo Clinic, Genworth has created Live+Well, a wellness program providing access to health education information, tools, services, and access to Mayo Clinic professionals. This is available to insureds and their uninsured spouses or partners for the life of their policy.
Caregiver Support Services, provided by CareScout, can help insureds and their immediate families if they have an LTC need. CareScout, a Genworth company, specializes in helping caregivers identify care resources for aging parents or other immediate family members.
We are routinely improving our service tools and technologies. Examples include significant enhancements to information and functionality on our genworth.com pro producer website, innovations in claims management from our world-class LTC claims organization, and translating the “best of” the Life Quick Request platform to our LTC Quick Request, bringing you enhanced tools and consistency across life and long term care.

Fixed Annuities. We listened to both consumers and our distribution partners in creating new products for the fixed index annuity market. With growing numbers of baby boomers approaching retirement, we think we have the right products at the right time to help them prepare for a secure retirement. These products are designed for consumers weary of investment volatility and eager to protect their money from unpredictable market fluctuations.
To extend our position in this market, we recently introduced SecureLiving Index 7 and SecureLiving Index 10 Plus, designed to meet the needs of a wide variety of producers and clients, and which offer a unique set of client benefits.

Moving Ahead Together.Genworth is here to provide you with our recipe for success—the very best producer and consumer value propositions and our “main street” approach. We sincerely thank our national marketing organizations and general agents as well as producers for choosing Genworth to meet the needs of their clients. [PBK]

January 2012 Issue of Brokerworld Magazine. Author’s Bio Patrick B. Kelleher Executive Vice President Insurance and Wealth Management, Genworth Financial

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