FOR IMMEDIATE RELEASE
CONTACTS:
Audrey Wittenburg: (703) 729-7701 / awittenburg@icmg.org
Charles Wasilewski: (908) 647-2216 / charles@Aartrijk.com

Survey Shows Private-Label Products Widely Used,
Notes Inter-Company Marketing Group (ICMG)

ASHBURN, VA (October 20, 2009) - Private-label products are a common way for insurance industry partners to work together in strategic alliances, according to a survey of members of the Inter-Company Marketing Group (ICMG).

The May 2009 survey found that the majority of the survey group of 61 are either distributing or manufacturing private-label insurance products. The respondents are executives and professionals involved in the development, distribution or manufacturing of life, health, and benefits insurance products.

ICMG is the insurance industry's leading association devoted to fostering strategic alliances in the insurance and financial services marketplace.

The survey found that 62% of those using private-label insurance products are manufacturing products for others. Twenty-four percent reported they sell products manufactured by others, while 26% said they are not involved with such products.

"The survey shows the importance and acceptance of these 'imported' products in the life/health and benefits markets," commented ICMG president Anne Marie Faria, who is executive vice president of HealthPlan Services. "The survey shows that manufacturers and distributors both find these types of alliances to be a way to create value for consumers."

Limited-medical plans and life insurance were the dominant products being used. The survey found that ICMG members are involved with many types of private-label products:

• Limited-benefit medical insurance: 40%
• Life insurance: 37%
• Discount products (dental, vision, hearing, and prescription): 35%
• Group or individual dental: 31%
• Short-term medical: 23%
• Major medical (group): 17%
• Major medical (individual): 13%
• Medicare supplement: 13%
• Long term care: 13%
• Other: 42%

(Other products include: disability insurance, mortgage insurance, wellness programs, accident plans, dental plans, travel assistance, identity theft resolution, supplemental health, annuities, critical illness, retiree medical, financial wellness, employee assistance plans, and accidental death and dismemberment.)

Survey respondents pointed out key advantages of private-label products, including: increased sales; control of marketing/pricing; controlled distribution; opportunity to custom-design product offerings; positive association of the private-label name with the distribution organization; greater speed to market; ability to try new products without large outlay of time and resources; ability for carrier to enter a new product line faster; market differentiation; expanded distribution; and the creation and leverage of brand recognition.

For a copy of the survey results, contact Audrey Wittenburg, ICMG executive director, at (703) 729-7701 or awittenburg@ICMG.org or click here.

About ICMG: Inter-Company Marketing Group (www.icmg.org) is the premier nonprofit 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 the 400 members are marketing and business development decision-makers with insurance carriers, distributors, third party administrators, and other related companies. Follow ICMG on Twitter (@ICMG) and find ICMG on LinkedIn.

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