1. Preferred Term
10 Years Later
Worldsource Wealth Management

2. Agenda 1997 - a different world U.S. experience
Distribution perspective
Product promotion
Early results
Advisor experience
Market adjustments
Current market and the future

3. A Different World Small term-orientated companies now gone.
Career system is still in place.
Reinsurance was friendly and abundant.
Distribution was product driven.

4. U.S. Experience Mature competitive term market – price driven.
Distribution was underwriting savvy.
CNA launched Preferred in 1994.

5. U.S. Experience

6. U.S. Experience
In late 1996, CNA was writing in excess of 8,000 term applications a week!

7. Distribution Perspective
Price was right.
Battle for renewing Term 1 and distribution.
Product complexity was good (value).

8. Promotion in 1997 Preferred was the natural evolution of non-smoker.
CNA had no marketing. We did it!
Brokers were intrigued by the underwriting system.

9. Early Results Sales took off in all cells. Many large cases.
High percentage of Class 1 & 2.
By 2000, 10,000 applications written.
Most companies followed into Preferred.

10. Advisor Experience Embraced concept.
Saw Preferred as a replacement opportunity.
Expected good results and …

11. Advisor Experience
E X C E P T I O N S !

12. Advisor Experience
“I need super Preferred on him to place the other three cases.”
“I quoted Class 1.”
“I need Preferred to beat his current price.”

13. Market Adjustments Consolidation (no more small guys).
Tightening of underwriting.
Shift from price and product to underwriting and service.

14. Where is the market heading?
Will continue to be strict.
Is there another way?
Demand for simplified underwriting.