Why has Ethos (Insurance Brokers)'s term life insurance policy sales declined by 15% in the last quarter?

Introduction

The recent 15% decline in Ethos's term life insurance policy sales is a concerning trend that requires immediate attention and a thorough root cause analysis. As we delve into this issue, we'll systematically examine various factors that could be contributing to this downturn, considering both internal and external influences on our product performance.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm wondering if there have been any recent changes to our product offering or pricing structure. Have we made any significant adjustments to our term life insurance policies in the last quarter?

Why it matters: Product changes can directly impact sales performance. Expected answer: Information about recent product modifications or lack thereof. Impact on approach: If changes were made, we'd focus on their impact; if not, we'd look elsewhere.

• Considering market dynamics, I'm curious about our competitors' activities. Have we observed any notable shifts in competitor strategies or offerings during this period?

Why it matters: Competitive pressures can significantly influence our sales performance. Expected answer: Insights into competitor actions or market shifts. Impact on approach: Strong competitive moves would shift our focus to market positioning and differentiation.

• Thinking about our sales channels, I'm interested in understanding if the decline is uniform across all distribution channels or if it's more pronounced in specific areas. Can you provide a breakdown of the sales decline by channel?

Why it matters: Channel-specific issues could point to targeted problems rather than overall product issues. Expected answer: Data on sales performance across different channels. Impact on approach: Significant variations would lead us to investigate channel-specific factors.

• Reflecting on customer feedback, I'm wondering if there have been any changes in customer satisfaction or Net Promoter Score (NPS) during this period. Do we have recent data on customer sentiment?

Why it matters: Changes in customer perception can directly impact sales. Expected answer: Recent customer satisfaction metrics and any notable feedback. Impact on approach: Negative shifts in sentiment would prompt a deeper look into customer experience and product fit.