THE INSURANCE AND BENEFITS INDUSTRIES WILL SURVIVE AND THRIVE!
Quote - "One who gains strength by overcoming obstacles possesses the only strength which can overcome adversity." – Albert Schweitzer
For the past several years we, BenefitPlace.biz and BPTradeShow.com, have been inundated with a barrage of information promoting "Doom and Gloom" for the Insurance and Benefits Industries.
In 2010 one reliable source predicted that over 50% of all Health and Life brokers would be out of business within 4 years!
Just today we came across the following by Mike Jackoski - "PandC insurers have had a bad taste of doing business in 2012, and they realize they are dealing with a tough environment—one in which little or no organic customer growth exists to fuel corporate growth. Gaining market share means taking it away from someone else, so the level of competitiveness in the industry is high and will only get more intense."
The Industries - Health and Life, Voluntary/Worksite, Property and Casualty, etc. - are facing many challenges and uncertainties! These include:
- The ongoing Economic Recession!
- Unemployment and Under-Employment!
- Regulatory Constraints!
- Uncertainty over PPACA / Obamacare!
- Shrinking Commissions and Capitation Payments!
- Insures dealing direct over the internet!
- Increased Costs of Administration and Reporting!
- Uncertainty about Taxation for Individuals and Organizations!
- Political Unrest!
For Clients and Potential Clients all of the above seem to generate a "do nothing for now" attitude. They are hesitant to invest in these uncertain times - even at their own risk! Industry attitudes fuel these doubts! It is our opinion at BenefitPlace.biz and BPTradeshow.com that the Leaders and Participants in the Insurance and Benefits Industries need to take a more pro-active and positive approach! The following measures might best serve your Organization, Individuals serving the Insurance and Benefits Markets, and the overall Marketplace:
- Accept - and even embrace - change! Make the changes work for you!
- Capitalize on the markets and the potential clients that are expanding!
- Examine a shift to a fee based model! It worked for the Financial Services Industries!
- Diversify! Traditional Health and Life Insurers/Brokers and can learn from or join with Voluntary/ Worksite Insurers and Brokers! P and C firms can leverage their relationships with existing clients to joint venture with the Health and life/Voluntary Worksite Markets.
- For markets that are new to you, or that require specific expertise, utilize the services of Wholersalers, GAs, and PAs!
- Shift from expensive and often wasteful "Outbound" marketing strategies, ie. Advertising, Buying Lists, Cold Calling, Call Centers, Traditional 3 Day Trade Shows, etc. to "Inbound" Marketing Strategies.
- Leverage the Power of the Internet, Social Media, Search Engines, SEO, etc. as the basis for your "Inbound" Marketing Strategy!
In my Blog of June 6, 2011 I wrote, "A Rebound in the US Markets - combined with expanding worldwide opportunities, a renewed emphasis on saving, and the preservation of income will open new markets for those in the Insurance and Benefits Industries who remain! THE UNITED STATES IS, REMAINS, AND WILL CONTINUE TO BE THE BEST PLACE TO LIVE, WORK, OWN A BUSINESS, CREATE A BUSINESS, AND TO PRESERVE EARNED INCOME IN THE WORLD!" I'll stand by that statement today!
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