Annuity product management is a complex role requiring a diverse skill set. Discover how leveraging external experts can optimize your team’s performance and ensure comprehensive due diligence.
The Product Manager described in most job postings is often an idealized figure, expected to excel in numerous and sometimes contradictory skill sets. This unrealistic expectation is akin to finding a baseball player who excels both at pitching and hitting, or a basketball player who is proficient both at scoring and defense. While unicorns like Shohei Ohtani or Michael Jordan do exist, they are exceedingly rare.
In the context of annuity product management, we often expect our managers to be good at maximizing revenue from carriers (high EQ) while also being proficient in back-office operations and processing (high IQ). This dual demand makes finding a single individual who can perform all these tasks exceptionally well nearly impossible.
The Annuity Product Manager Responsibilities Pyramid® outlines four essential skill sets: Carrier Relationships, Service and Sales, Ops and Tech, and Product Due Diligence. Each of these areas requires a unique set of skills and competencies.
1. Carrier Relationships: Focuses on maximizing revenue and resources from carriers, requiring high emotional intelligence (EQ).
2. Service and Sales: Involves supporting advisors through the sales and service process, also demanding high EQ.
3. Ops and Tech: Requires streamlining back-office operations and processing, necessitating high intellectual intelligence (IQ).
4. Product Due Diligence: Entails rigorous analysis and due diligence at both the product and carrier levels, requiring high IQ.
One common but flawed strategy is hiring an advisor to be an Annuity Product Manager, assuming that experience in selling annuities translates into expertise in annuity due diligence. This is as misguided as putting a frequent flyer in the pilot’s seat.
Another mistake is relying solely on carrier ratings from third parties. Great carriers can produce subpar products, and good carriers can create excellent products. Comprehensive due diligence at both the product and carrier levels is essential for making informed decisions.
Given the diverse skill sets required, it's impractical to expect one person to master all four areas of the Annuity Product Manager Responsibilities Pyramid®. The solution is to build a team of internal and external experts who can collectively cover all necessary skills.
Start by identifying who on your current team can handle each of the 'Core Four' skills. If you find gaps, consider bringing in external experts to fill those roles. This collaborative approach ensures that all aspects of annuity product management are adequately covered.
Due Diligence Works (DDW) can be particularly useful in enhancing your product due diligence efforts. DDW offers a customized 'Add / Remove / Keep' Annuity Product Recommendation List on a quarterly basis, complete with high-conviction recommendations and supporting documentation.
This service helps streamline your due diligence process, making it easier to present well-informed recommendations to your Product Committee. By leveraging DDW's expertise, you can ensure that your annuity product shelf is both comprehensive and compliant with regulatory standards.