Carrier Selection involves identifying the appropriate company(ies) for placement of the desired financial solution. This is typically a concerted effort between the Relationship manager/Producer and the Member Firm’s Case Design and Underwriting teams.
Due Care Analysis
Member Firms review all proposed insurance companies for relative financial strength, utilizing various resources including VitalSigns®, carrier documentation, industry publications, proprietary data and analysis, and other third-party reports.
Member Firms are independent, without commitment to any one carrier, and have the freedom to choose the carrier and product that effectively fits their client’s needs. Instead of being limited to one carrier and a small portfolio of products, Member Firm clients benefit from a line-up of leading brands in the industry and dozens of product types. This supports each Member Firm’s ability to create, implement, and administer customized solutions.
Proprietary Products and Dedicated Teams
M Member Firms have access to a variety of proprietary products designed for our corporate and high net worth clients. These products are developed specifically with favorable expenses and mortality charges that reflect the experience of the Member Firm client base. Member Firms have dedicated marketing, underwriting, and service teams at all of M Financial’s Partner Carriers. This provides a streamlined process for designing, issuing, and administering client policies.
Over time, carriers may be more or less competitive in their product lines and risk assessments. For example, some carriers specialize in whole life or universal life and others may specialize in term insurance. Their specialization in a particular product line may affect their competitiveness in pricing and their commitment to policyholders.
Access to Senior Management
M Financial and Member Firms have developed open communication with senior level contacts at multiple carriers. Together, Member Firms and M Financial are able to speak directly with senior level underwriters during the risk assessment process, enhancing our ability to effectively negotiate underwriting decisions. Member Firms are also involved in discussion with senior management regarding the feasibility and design of new products.
Retention and Reinsurance
The amount that a carrier can issue is influenced by retention limits and the reinsurance markets. This is a dynamic component that must be factored into larger life insurance transactions. Member Firms (with the support of M Financial Re, M Financial’s wholly owned reinsurance operation) have the expertise and dedicated resources that enable Member Firms to stay abreast of current market conditions.
Equitable Treatment of In-force Policyholders
Because M Financial invests its own capital in the business placed by Member Firms, Member Firm clients benefit from unique insight into the products they own. When better-than-expected experience emerges, it is critical that pricing improvements for new products are also applied to existing policyholders. M Financial seeks to establish relationships with carriers who believe in this philosophy.