Hartford Financial Services Group Inc. plans to expand distribution to increase sales in its individual life insurance business, according to the unit's new director.
Brian Murphy was promoted last week to executive vice president and director of the unit, whose sales rose 44.9% last year, to a record $284 million. He said he wants to do more selling through brokerages, national accounts, banks, and other channels.
Hartford, of Simsbury, Conn., has increased its sales force 33%, to 240, over the past four years and will do further hiring.
"We plan to add more people this year to what is recognized as one of the industry's top distribution forces," Mr. Murphy said.
Banks have been Hartford's fastest-growing channel for individual life sales for the past three years; its sales through banks in that category rose 49% last year. Mr. Murphy said he sees tremendous opportunities to increase sales through Hartford's banking partners.
"More and more banks are gravitating to life insurance to meet their clients' needs," he said. "We really believe, the more problems that you can help solve, the tighter the relationship can become."
Mr. Murphy has been the president and chief executive officer of the Hartford broker-dealer Woodbury Financial Services in Minnesota for five years. In his new post he will succeed Michael Kalen, who was named president and CEO of Hartford Life Ltd. in Europe. Both men start their new jobs Feb. 26.
Mr. Murphy said there are also opportunities to expand distribution through independent advisers, specifically life insurance providers.
"Hartford has a presence in the independent channel, but there is substantial room to grow there," he said. "Geographically, we are blessed with good coverage. This is about channel expansion."
Hartford is always considering new channels, Mr. Murphy said. Last year it launched a private wealth management initiative in which a select group of its life insurance professionals focused on selling products to individuals with a net worth of at least $25 million.
Mr. Murphy said another way he wants to boost sales is by collaborating with Hartford's other units, including Planco Financial Services Inc., Hartford Life's wholesaler for investment products. "We have a clear initiative established to have a partnership with them to get the word out to the independent channel and the wire houses about our life insurance products," he said.
Specific products he wants to sell more of include term life and variable universal life insurance.
"Term is a product that Hartford has had in its portfolio for some time," he said. "We made a deep commitment and sales went up substantially, but I think there is a lot of upside for term life insurance. We want to be a top term life player, and that is in the cards for the next few years."
Variable universal life insurance has had strong sales for the past four to five years, Mr. Murphy said, but "even with that market presence, I think there are opportunities to expand even more."
Hartford will continue to add products, including variable universal life policies and death benefit riders, but will not necessarily need to add a lot of new riders to keep its variable products competitive, Mr. Murphy said.
He said he wants to look at the internal costs and mortality charges associated with variable universal life to see if there are ways to reduce fees. "We certainly have some room here to be more competitive with this product."
