Why has Thrivent's term life insurance policy sales volume dropped 15% in the last quarter?

Introduction

The recent 15% drop in Thrivent's term life insurance policy sales volume is a concerning trend that requires immediate attention and a thorough root cause analysis. As we delve into this issue, we'll systematically examine potential factors, generate data-driven hypotheses, and develop a comprehensive plan to address the underlying causes and reverse this downward trend.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this 15% drop been compared to the same quarter last year?

Why it matters: Seasonal variations could explain the drop and influence our approach. Expected answer: Yes, it's been compared to the same quarter last year. Impact on approach: If it's not seasonal, we'll focus more on recent changes or market shifts.

• Considering the specificity of the drop, I'm wondering about the sales funnel. Has there been a change in the conversion rate at any particular stage of the sales process?

Why it matters: Pinpointing where in the funnel the drop occurs can help narrow down potential causes. Expected answer: There's been a decrease in conversions from quote to purchase. Impact on approach: We'd focus on factors affecting the final decision-making stage.

• Given the competitive nature of insurance, I'm curious about market dynamics. Have there been any significant changes in competitor offerings or marketing strategies?

Why it matters: External market forces could be drawing potential customers away. Expected answer: A major competitor launched a new, more affordable term life product. Impact on approach: We'd need to assess our product positioning and pricing strategy.

• Thinking about internal changes, have there been any recent modifications to the product, pricing, or underwriting process?

Why it matters: Internal changes could inadvertently be causing the sales drop. Expected answer: We implemented a new underwriting algorithm three months ago. Impact on approach: We'd need to closely examine the impact of this algorithm on approvals and pricing.