1. FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

2. Life Insurance Critical Success Factors
Dave Murphy, CLU, ChFC, FLMI Sales Vice President, National Accounts
Description: The best way to grow your Life Insurance Sales is by measuring your Critical Success Factors and pairing your Current Results with an Analysis of your Agent Production. During this session you will be challenged to do the following:
Identify Areas in Need of Improvement (Average Premium, Paid Case Ratio, % of Contracted Agents Actually Producing, etc.)
Identify Agents in Need of Attention
Develop a Plan for Creating a Change in Behavior
Work with North American’s Sales VPs as Your Business Consultants
You will leave this session with actionable steps to take to increase sales in 2017!
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

3. FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.
In independent life insurance distribution, nothing happens until the life of an Independent Financial Professional (IFP) intersects, in an impactful way, with the life of a consumer who is unprepared for the unexpected.
In independent life insurance distribution, nothing happens until the life of an independent financial professional intersects, in an impactful way, with the life of a consumer who is unprepared for the unexpected.
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

4. FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.
Main Idea
Growth happens when IFPs:
See more people
Help people see
Have more stories
Become more efficient
Where does organic growth come from? It comes from these four activities:
IFPs see more people who are unprepared for the unexpected
IFPs help people see their unpreparedness
IFPs have more stories
IFPs become more efficient as business people
“You enter the extraordinary by way of the ordinary.” (Frederick Buechner)
Incremental Improvements Obtained through the Aggregation of Marginal Gains!
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

5. FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.
Agenda
Identifying Critical Success Factors
Identifying IFPs Who Require Attention
Identify Areas in Need of Improvement (Critical Success Factors – What You Should Measure)
Identify IFPs in Need of Attention (Quantity – How many and how often?)
Develop a Plan for Creating a Change in Behavior (Quality – How much and what type?)
Creating Change in Behavior
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

6. FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.
Identifying Critical Success Factors
What You Should Measure
Average Premium
Submitted Cases
Percentage of Producers
Producers Above $5,000
Improved Paid Case Ratio
According to H. James Harrington, “Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.”
In “How to Measure Anything: Finding the Value of "Intangibles" in Business” by Douglas Hubbard said, “If a measurement matters at all, it is because it must have some conceivable effect on decisions and behavior. If we can't identify a decision that could be affected by a proposed measurement and how it could change those decisions, then the measurement simply has no value”
Average Premium
Average Premium is determined partly through Product Mix.
Average Premium is also influenced by the underlying purpose for which the policies were purchased by clients working with your financial professionals.
Average Premium is obviously associated with the age of the people insured.
Average # of Submitted Cases per Week
Case counts are closely aligned with transactional business. Transactional business goes to the Carrier that is easy to do business with.
Low face amount ULs/IULs and Term often drive significant case count.
Percentage of Contracted Agents Producing
Analyze the agents contracted to discover which ones have not produced in 2012, 2-13, 2014, or 2015
Consider surveying your contracted agents to see if they want to keep their contracts
Number of agents producing above $5,000
Agents selling more than $5,000 are either selling more cases or higher premium cases, both of which are desirable.
Would you prefer to find another 50 financial advisors to produce one or two small cases each, or would you rather take existing producers to a higher level of production?
Improved PCR
Do you know what a 5% increase in Paid Case Ratio would have meant to your Paid Premium results in 2015?
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

7. FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.
Agenda
Identifying Critical Success Factors
Identifying IFPs Who Require Attention
Creating Change in Behavior
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

8. Identifying IFPs Quantity
How Many & How Often?
$93,633
$286,857
2014
2015
2016
Number of Contracts 26 33 43
Number of Contracts Producing Paid 11 8 14
% of Contracts Producing Paid
42%
24%
33%
$20,000 or More 1 2
Between $15,000 and $19,999
Between $10,000 and $14,999
Between $5,000 and $9,999 5
Less than $5,000 6
For example: An Agency produced $93,633 in 2015 and $286,857 in 2016
Goals:
maintain at least 40% of Top producers from last year
develop selected IFPs into regular producers
get 45% of new agents submitting business in their first 90 days
85% of our Partner MGAs’ business each year comes from the IFPs who produce $5,000 or more in premium
These represent usually only 15-20% of all contracted and producing IFPs
An IDA Office can nearly double their business year-over-year by grooming marginal IFPs into becoming core producers.
Numbers presented are hypothetical, and for example purposes only.
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

9. Identifying Agents Quantity
How Many & How Often?
$93,633
$286,857
Recruited
2014
2015
2016
Number of New Contracts 6 8 11
Number of New Contracts Producing Paid 3
For example: An Agency produced $93,633 in 2015 and $286,857 in 2016
Goals:
maintain at least 40% of Top producers from last year
develop selected IFPs into regular producers
get 45% of new agents submitting business in their first 90 days
Numbers presented are hypothetical, and for example purposes only.
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

10. Identifying Agents Quantity
How Many & How Often?
$93,633
$286,857
For example: An Agency produced $93,633 in 2015 and $286,857 in 2016
Numbers presented are hypothetical, and for example purposes only.
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

11. FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.
Agenda
Identifying Critical Success Factors
Identifying IFPs Who Require Attention
Creating Change in Behavior
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

12. Creating Change in Behavior Quality
How Much & What Type ?
$93,633
$286,857
Term UL
IUL
2015
$11,935
$80,212
$1,485
2016
$42,953
$73,203
$170,701
For example: An Agency produced $93,633 in 2015 and $286,857 in 2016
Numbers presented are hypothetical, and for example purposes only.
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

13. Creating Change in Behavior Quality
How Much & What Type ?
$93,633
$286,857
Average Paid Premium
Paid Case Ratio
2015
$4,256
65%
2016
$8,196
78%
For example: An Agency produced $93,633 in 2015 and $286,857 in 2016
Numbers presented are hypothetical, and for example purposes only.
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

14. FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.
Creating Change in Behavior
Quality
Do You Want to Increase The Percentage of Contracted IFPs Producing?
Review
Survey
Interview
Do You Want to Increase the Percentage of Contracted IFPs Producing?
Review IFPs from 2013 – 2016 who are no longer producing
Survey contracted IFPs to see if they want to keep their contract
Interview former, regularly-producing IFPs and ask penetrating questions:
If you ran into your client (or client’s widow) ten years from now, what would they most regret that you did not discuss with them now?
Why are more people not buying life insurance from you?
Is there a sales concept that you have heard about but do not yet feel like you have mastered?
If you had to guess, what percent of the life insurance policies owned by your clients have inappropriate beneficiary designations?
What client needs have they not been addressing?
Which of their clients have they not seen in four years!
Which of their clients own policies with no living benefits?
How much revenue are you hoping to earn in 2017 from the sale of life insurance?
How many selling appointments will you have per week in 2017?
What is your closing ratio (sales/appts)?
What is your average compensation per sale?
Will you reach your revenue goal if nothing changes in these metrics?
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

15. FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.
Creating Change in Behavior
Quality
Do You Want to Double The Number IFPs Producing Above $5,000?
Interview
Ask Questions
Do You Want to Double the Number of IFPs Producing above $5,000?
Interview irregularly-producing IFPs and ask penetrating questions, such as:
What concerns are most pressing among your clients?
How many families and businesses can you help to protect through life insurance this year?
How many of your past clients own life insurance products that do not feature the living benefits available in today’s products?
How much of your annual revenue originates from life insurance sales?
How many of your clients have you not seen in the last four years?
Can you state whether or not your clients are well-covered with life insurance?
Why are more people not buying life insurance from you?
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

16. FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.
Creating Change in Behavior
Quality
Do You Want to Generate a Higher Average # of Submitted Cases Per Week?
Promote IDA Drop Ticket & SimpleSubmit
Help Your IFPs
Train on Practice Management Tips
Do You Want to Generate a Higher Average # of Submitted Cases per Week?
Promote IDA Drop Ticket and SimpleSubmit. Transactional business will increase your apptivity!
Help your IFPs create a more effective business process! Begin by asking them a series of questions.
Train your IFPs on Practice Management Tips.
Do You Want to Generate a Higher Average of Submitted Cases per Week? Identify # of financial professionals not yet using electronic application process!
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

17. FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.
Creating Change in Behavior
Quality
Do You Want to Generate a Higher Average Premium?
Identify Sales Concepts
Identify IFPs Not Presenting Concepts
Partner with North American Who Can Help With Training
Do You Want to Generate a Higher Average Premium?
Identify Sales concepts that generate larger premiums
Identify IFPs not presenting these concepts to their clients
Partner with North American to train your IFPs on the Right Words and Right Questions
Do You Want to Generate a Higher Average Premium? Identify the # of IFPs who are not conversant in the Sales Concepts that generate larger premiums
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

18. FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.
Creating Change in Behavior
Quality
Do You Want to Improve Your Paid Case Ratio?
Identify IFPs With Low PCRs
Provide Field Underwriting
Encourage IDA’s Drop Ticket
Do You Want to Improve Your Paid Case Ratio?
Identify IFPs with low PCRs
Provide these IFPs with Field Underwriting
Encourage these IFPs to use IDA’s Drop Ticket
Do You Want to Improve Your Paid Case Ratio? Identify financial professionals contributing to the low PCR and train or terminate their contracts!
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

19. FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.
Summary
Identifying Areas
Critical Success Factors
Identifying Agents
Quantity
Do You Want to Generate a Higher Average Premium?
Do You Want to Generate a Higher Average of Submitted Cases per Week?
Do You Want to Increase the Percentage of Contracted Agents Producing?
Do You Want to Double the Number of Agents Producing above $5,000?
Do You Want to Improve Your Paid Case Ratio?
If so, then the behavior of your IFPs needs your investment.
Creating Change in Behavior
Quality
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

20. FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.
Main Idea
Critical Success Factors are Useful in Identifying Growth Opportunities When Paired with Analysis of IFP Production
Growth happens when IFPs:
See more people
Help people see
Have more stories
Become more efficient
According to H. James Harrington, “Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.”
In “How to Measure Anything: Finding the Value of "Intangibles" in Business” by Douglas Hubbard said, “If a measurement matters at all, it is because it must have some conceivable effect on decisions and behavior. If we can't identify a decision that could be affected by a proposed measurement and how it could change those decisions, then the measurement simply has no value”
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

21. FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.
Next Steps
Identify Areas of Improvement
Identify IFPs in Need of Attention
Develop a Plan
Work with North American’s Sales Vice Presidents
Identify Areas in Need of Improvement (Average Premium, PCR, % of contracted agents producing, etc.)
Identify Agents in Need of Attention
Develop a Plan for Creating a Change in Behavior
Work with North American’s Sales VPs, Your Business Consultants
By enlisting carrier support in providing specialized training to carefully selected IFPs, you can help change the business behavior and elevate the skills and competency of one IFP at a time!
Become more relevant! How?
Offer Tailored Training and Education
Offer Useful and Timely Reporting
Provide Help for Each IFP to Build a Stronger Business Model
Establish mutual commitments and hold one another accountable
Build Tactical Plans/Marketing Calendars with Each IFP
Help IFPs Mine New Sales from Existing Clients
“In business, you change with the times or flame out.”  Jason Daley
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.

22. Life Insurance Critical Success Factors
Dave Murphy, CLU, ChFC, FLMI Sales Vice President, National Accounts
Description: The best way to grow your Life Insurance Sales is by measuring your Critical Success Factors and pairing your Current Results with an Analysis of your Agent Production. During this session you will be challenged to do the following:
Identify Areas in Need of Improvement (Average Premium, Paid Case Ratio, % of Contracted Agents Actually Producing, etc.)
Identify Agents in Need of Attention
Develop a Plan for Creating a Change in Behavior
Work with North American’s Sales VPs as Your Business Consultants
You will leave this session with actionable steps to take to increase sales in 2017!
622NP 5/17
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION.