The new Department of Labor (DOL) Retirement Security Rule will change how insurance advisors sell annuities. Advisors must think carefully about what products are in the best interest of each client and may cause adjustments to how they work. Financial institutions overseeing these advisors must have compliant policies and procedures.  

Digital automation takes suitability reviews and product matching to the next level. By combining standardized data capture, rules-based scoring, and automated oversight, technology empowers advisors. They can deliver highly personalized product recommendations at scale while managing every changing regulatory and compliance environment.

New rules = Higher standards

The evolving fiduciary and best interest standards bring higher standards. The new rule highlights the requirement for advisors to consider various aspects of the clients’ existing state and need when recommending an annuity. This is to ensure the product is suitable for the client. They will collect this data through needs determination and suitability questionnaires. All before the product recommendation. 

Using scores to pick winners

A way to address certain aspects of the new rule involves utilizing scoring. This helps to filter products based on information collected. It also can assist in determining how well the products fit the client’s need or goal. Some automatic sales tools let you configure suitability scoring to create consistent workflows. This helps you follow the regulations based on specific needs.

Recording every step

Keeping a record of every step of the pre-sale process will be key. Many in the industry are using game-changing sales software to do this. They include reliable processes with audit trails so advisors have documented steps taken.  These solutions also provide the ability to incorporate the necessary disclosures and DOL required documents as part of this process, and you have the trail that you provided the notices.

Happy clients, happy life

When you handle questions about product fit upfront, clients are happier. Also, reducing compliance errors, in turn, reducing NIGO rates. This protects advisors from risks. It helps build trust and loyalty. Advisors get to be proactive, which helps avoid the frustration of rejected applications. 

Executing suitability after the application is a recipe for disaster. Handling it before the sale keeps clients happy and business in good order.

Gearing up for the future of sales help

New regulations bring change. But you can make your sales processes quicker while remaining compliant and get the right product to your client faster. 

Through technology, you can handle the new rules with confidence. Help your advisors meet the highest standards while keeping the sales process smooth. Technology will play a more influential role in advisor’s success in the new DOL rule sales environment. Get ahead of the rule. Look at the advanced sales software solutions available today. These solutions can support your desired processes, workflows and sales experience while following the new requirements.

Article by Kevin Pohmer, Chief Product Officer, Hexure

This article was first published in Aspire Magazine.