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    Lincoln Financial Group (A)

    Uploaded by

    Shubham Jain
    Lincoln Financial Group was facing some current problems with their sales and distribution structure, including a lack of coordination between distributors of different products and no structured compensation plan. To address these issues, they proposed creating a single, separate distribution company to aggregate all of their sales and distribution responsibilities from the individual business units. This would help build relationships with wirehouses, banks, and independents and allow for a more solution-oriented, integrated sales approach that customers want. It could also help reduce multiple personnel from Lincoln calling on the same clients for different products. However, there is a risk of losing some control over business sales and impacting the link between product development and the field.

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    © All Rights Reserved
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    Lincoln Financial Group (A)

    Uploaded by

    Shubham Jain
    263 views9 pages
    Lincoln Financial Group was facing some current problems with their sales and distribution structure, including a lack of coordination between distributors of different products and no structured compensation plan. To address these issues, they proposed creating a single, separate distribution company to aggregate all of their sales and distribution responsibilities from the individual business units. This would help build relationships with wirehouses, banks, and independents and allow for a more solution-oriented, integrated sales approach that customers want. It could also help reduce multiple personnel from Lincoln calling on the same clients for different products. However, there is a risk of losing some control over business sales and impacting the link between product development and the field.

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    LFA

    Original Title

    Lincoln Financial Group(a)

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    Lincoln Financial Group was facing some current problems with their sales and distribution structure, including a lack of coordination between distributors of different products and no structured compensation plan. To address these issues, they proposed creating a single, separate distribution company to aggregate all of their sales and distribution responsibilities from the individual business units. This would help build relationships with wirehouses, banks, and independents and allow for a more solution-oriented, integrated sales approach that customers want. It could also help reduce multiple personnel from Lincoln calling on the same clients for different products. However, there is a risk of losing some control over business sales and impacting the link between product development and the field.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    263 views9 pages

    Lincoln Financial Group (A)

    Uploaded by

    Shubham Jain
    Lincoln Financial Group was facing some current problems with their sales and distribution structure, including a lack of coordination between distributors of different products and no structured compensation plan. To address these issues, they proposed creating a single, separate distribution company to aggregate all of their sales and distribution responsibilities from the individual business units. This would help build relationships with wirehouses, banks, and independents and allow for a more solution-oriented, integrated sales approach that customers want. It could also help reduce multiple personnel from Lincoln calling on the same clients for different products. However, there is a risk of losing some control over business sales and impacting the link between product development and the field.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    Lincoln Financial

    Group(A)
    Made By:
    Mohit Gandotra
    Current Problems
    No structured compensation plan for LFG wholesalers- MGAs werent paid more even if they sold
    products from more than 1 LFG wholesalers
    Lack of coordination between distributors of different products- Distributor of universal life and term life
    insurance calling on the same MGA
    Customers want choice rather than being pushed for a particular product

    Proposed Solution
    To remove sales and distribution responsibility from each of its individual business and aggregate them all
    into a single, separate distribution company.
    Cons:
    1.) Loss on control over sales of business head
    2.) Might effect link between product development and field
    Pros
    1.) Would help Lincoln in building relationship with wirehouses, banks and independent
    2.) Clients want solution oriented sales which is possibles only with an integrated organisation
    PRODUCTS

    LFG

    Investment
    Life Insurance Annuity
    Management

    Fixed Term Fixed Variable Mutual Funds

    LFG- Market Managed


    Whole Life
    Leader Accounts

    Universal Life

    Variable
    Universal Life
    Insurance

    Insurance
    LFGs Revenue from insurance- 23%
    Earnings from insurance- 46%

    LFAs Wholesalers(Intermediary)
    2000 LFAs (LLD, Cigma and Aetma wholesalers)
    39 offices

    MGA Channel
    Other financial
    Wirehouse 100% yoy Banks
    institutions
    growth
    Annuity

    Lincoln Annuity
    Products

    American Funds Cigna Revenue from annuity- 63%


    Wholesaling Wholesaling Net income from annuity- 16%
    operations Group

    Variable Annuity Choice Plus


    Product Annuity Product
    Mutual Funds

    Mutual Funds
    Product basis
    Distribution
    65- Life Insurance
    20-Annuities, 20-IM
    Revenue from mutual funds-14%
    -----------------------------------
    Earnings from mutual Funds- 38%
    Channel Basis
    80- Wirehouses Wholesalers-
    9- Banks, 20-Independent 220 dealers
    Agents, 15- MGAs

    Retirement Wirehouses
    LFAs-Internal Banks
    Plan sponsors and regional
    LFD Concept
    Establishment of integrated distribution of Lincoln Financial services

    Advantages
    Brining together the distribution channels and sales efforts of all SBUs under one umbrella

    Non uniformity in compensation plan for Wholesalers

    Reduce multiple personnel from the same company calling for different product

    Reuce Lack of coordination between SBUs at Lincoln

    The wholesaling quality was not the same in the different business units The new distribution structure is a good move in order to
    better organize distribution.
    Customer Intimacy
    Matching customer needs with tailor made offerings (Enhanced customer value)

    Financial advisors need to persuade them to invest in funds persuasion process.

    Bundle financial products and services as a package was an emerging trend among major Wirehouses
    Customers want choice, they want advisors rather than product pushers
    LFD would make their job easier by reducing confusion
    Thank You

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