CNO Financial Sidebar: Selling to the Middle
How Jim Prieur developed a niche for CNO Financial by focusing on the middle market
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Kevin J. Miyazaki
When Jim Prieur arrived at Conseco in 2006, one of his first goals, he says, was to court the underserved and growing middle market of working-class Americans and retirees. More than 50 million U.S. households fall into that category, according to CNO (which currently serves about 4 million of them), and the 65-and-older population is projected to grow by 50 percent in the next decade. Those in this group typically have $20,000 life insurance policies, not the eight-digit plans of the superwealthy. To make money in this middle market, says Prieur, takes discipline and focus. Here’s how CNO does it.
1. Keep Costs Low. Selling to customers spending less than $1,000 a year in premiums means CNO needs to keep its expenses lean. For instance, the company leases second-tier office space outside a city’s center, not luxury office towers in the heart of downtown. “It’s like the difference between Walmart and Neiman Marcus,” says Prieur. “Both can make money, but they’re going about it very differently. We’re designed to take care of the Walmart customer.”
2. Know Thyself. When CNO actuaries become enamored with new insurance products because they’re seen as sophisticated or cool, Prieur and his team put on the brakes. “Those aren’t the kinds of products our customers want, and we constantly have to resist the temptation to move upmarket,” he notes.
3. Speak the Right Language. Selling life insurance to the wealthy means being part of an overall estate plan, says Prieur. “Those folks will typically have their CPA and tax attorney with them to help,” he says. Selling to CNO customers requires a simple product that’s easy to explain to them, usually in their own home. “We literally sell across the kitchen table,” the CEO says. “Our people have to be able to explain our products in plain talk that everyone understands.”
