What factors are causing the decline in new applications for Nationwide's term life insurance policies over the last 6 months?

Introduction

The decline in new applications for Nationwide's term life insurance policies over the last 6 months is a concerning trend that requires thorough investigation. To address this issue, I'll employ a systematic approach to identify, validate, and address the root cause while considering both immediate and long-term implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this decline been consistent across all months, or are there any noticeable patterns?

Why it matters: Seasonal trends could explain fluctuations and help us differentiate between cyclical changes and genuine problems. Expected answer: Some variation, but overall downward trend across all months. Impact on approach: If seasonal, we'd focus on year-over-year comparisons rather than month-to-month.

• Considering potential changes in the competitive landscape, have there been any significant moves by competitors in the last 6-8 months?

Why it matters: Competitor actions could be drawing potential customers away from Nationwide. Expected answer: A few competitors have launched new products or aggressive marketing campaigns. Impact on approach: We'd need to analyze our product positioning and marketing strategy in relation to competitors.

• Thinking about internal changes, have there been any modifications to the application process or policy terms in the last year?

Why it matters: Internal changes could inadvertently create barriers for new applicants. Expected answer: Minor updates to the online application form, no significant policy changes. Impact on approach: We'd need to closely examine the impact of these updates on user experience and conversion rates.

• Considering the broader economic context, have there been any notable changes in consumer financial behavior or sentiment towards life insurance?

Why it matters: Economic factors could be influencing consumer priorities and purchasing decisions. Expected answer: Some economic uncertainty, but no major shifts specific to life insurance. Impact on approach: We'd need to consider how to position our product in the current economic climate.