Many thought the delays would continue or that it would go away altogether... but it’s here. On June 9th, 2017, the Department of Labor (DOL) Fiduciary Rule begins a phased implementation, with the rule going into full effect on January 1, 2018.
Reps who are dependent on full-commission IRA rollovers are at risk. The unfortunate truth is that many of these advisors will not make it in this business under the new ruling or may leave the business entirely. One LIMRA study found that 56% of Broker-Dealers believe that some of their advisors will simply retire to avoid selling under the new rules.
What is needed to thrive in this post-DOL world is a transformational cultural and mindset change to embrace life, long-term care and disability insurance to meet our clients' needs.
This approach is in the best interest of our clients. However, from a business perspective, doesn't it make sense not to be overly dependent on a single product or service? Using a holistic planning approach will lead to a more balanced mix of business, helping reps to diversify their revenue streams, thereby improving retention. From a client's perspective, it means more needs are met: a win-win.
When I was National Sales Manager at PaineWebber, I trained stockbrokers to sell insurance. When I was a Senior Vice President at MetLife, I empowered insurance reps to offer investment products.
To thrive in a DOL/ ROBO ADVISOR environment, our competitive edge is our ability to create TRUST. Trust is a impulse not a calculation. It's built by creating relationships and connecting with people. Trust is never earned by the weight of evidence, but by the depth of a desire to help people, rather than to convince them of anything.
We need to bring back the art of story telling. All wisdom comes from specific human experiences. No ROBO ADVISOR can do that. In short, our competitive edge is being human, being our authentic self.
As Nick Murray says, "Think about the truths you want people to believe, not the facts you want them to know, and communicate how deeply you believe them." If you believe, you will be believed!
The bottom line is that to thrive in the current environment we need to put more emotion back into the business. There are only two emotions: the first is fear. Fear of prospecting, fear of rejection, fear of failure, fear of success, etc. Mostly, we fear things that never happen.
The other emotion is LOVE. 1 John 4 says there is no fear in love and total love drives out fear. The opposite of love is not hate but indifference. You can't survive in the future being indifferent.
Changing behavior is difficult. But as the poet said, "When I was clever, I wanted to change the world. When I was wise, I decided to change myself."
What are your thoughts on the DOL ruling? Leave your thoughts in the comment section below.