FOR IMMEDIATE RELEASE
CONTACTS:
Audrey Wittenburg: (703) 729-7701 / awittenburg@icmg.org
Charles Wasilewski: (908) 647-2216 / charles@Aartrijk.com
ICMG Survey: Insurance Firms Ride the Frontier
Seeking Products for Distribution
2 of 3 Looking for Products;
Independent Agents Most-Promising Distribution Channel
ASHBURN, VA (January 24, 2011) - Two thirds of insurance firms currently are seeking new products or services to introduce to their distribution channels in the next 12 months, according to an industry sample taken by the Inter-Company Marketing Group (ICMG).
Inter-Company Marketing Group (www.ICMG.org), a non-profit organization that fosters business networking for insurance strategic alliances, conducted the survey to explore issues related to insurance product distribution.
The sample of 53 respondents also shows that respondents are seeking a wide variety of insurance products for their distribution systems, with the most frequently cited being life insurance, cancer or critical illness, annuities, Medicare-related products, and property-casualty insurance.
A summary of the ICMG insurance distribution survey results is available at http://bit.ly/eDNYym.
Seven of 10 respondents already offer non-core products and services to their distribution channel(s), either from outside sources (imported) or in-house sources (manufactured). Product diversification, cross-selling and agent recruitment are the key reasons why insurance firms offer non-core insurance products.
The independent agent distribution channel is viewed by respondents as the most promising distribution channel. It is perceived as best for distribution retention, product persistency, and product placement ratios. The only distribution systems that scored higher among the respondents in any aspect were career agents, who scored highest for development of brand identity, and Internet distribution, which scored highest for return on investment.
The most frequently cited distribution channels currently used were independent agents, call center/telemarketing, broker-dealers, direct-to-consumer, and the Internet. Respondents included primarily ICMG members who are executive, product, marketing, actuarial and distribution decision makers with their insurance firms.
ICMG's role is to help insurance decision makers make connections that increase distribution opportunities through strategic alliances. Examples of strategic alliances include distribution firms aligning with insurance product manufacturers; third-party administrators providing services to product manufacturers; and private-label products.
About ICMG: Inter-Company Marketing Group (www.icmg.org) is the premier non-profit association that fosters strategic alliances between insurance and financial services companies, providing targeted networking opportunities, sharing of knowledge and experience, and resources for successful inter-company alliances. Among ICMG's members are marketing and business development decision makers with insurance carriers, reinsurers, distributors, third party administrators, service providers, and other related companies in the insurance industry. Follow ICMG on Twitter (@ICMG) and find ICMG on LinkedIn.
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