Thoughts, real-world observations, and anonymous examples – good and bad – regarding the use of Web/Social/Mobile technology in the insurance industry. Follow Mike Wise, President WebWisedom LLC, for the latest in Social Technologies.
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What’s your take on all this? Dare to share?
I attended the PIMA 2009 Summer Conference.
Subject: Catch the Wave! Products – and Profit – in the New Economy
Disclaimer: “The views expressed in this podcast are the views of the individuals, and are not the views of PIMA or its member organizations.”
A big thanks to the contributors. Some of my favorite comments…
….without completely changing the entire system. Socialized systems do not deliver the mark of excellence Americans are used to.
3 Gov’t HC plans = none are run very well. Private contractors for public employees works well.
Employees will purchase complementary plans – but will that be illegal?
Universal HC is already available. – Unlimited HC=disincentive to work
Prevention and wellness
What kind of precedent does this set?
The 50mln uninsured breaks down to a very small pop that doesn’t have access or choice.
Basic level of care to more people needs to occur first.
Insurance entrepreneurs – covering gaps and alternatives
Look at the broader perspective… Careful to not lose participation of docs… Might lose sense of ownership and responsibility…
Extensive waits – US population just wouldn’t put with that.
Continue to see a spiral in costs – financing issue.
Obama can’t change it – too much infrastructure.
Catastrophic losses, not routine things like physicals and routine drugs.
Car insurance analogy – OUTSTANDING!
Very expensive – increase taxes 2-3 times over.
Private market – put the expenses with the users and providers – like HSA’s
More transparency of costs and quality, get the middle man out
Putting together by people who don’t understand healthcare or insurance
This is a health crisis…
Can’t fix it in 90 days.
Breakdown insurance monopolies – set a provider pricing level, Medicare reimbursement rate plus 20%.
Lower administrative costs
Citizens and businesses – get educated and respond to congress, House members need to hear from you. www.congress.org
Grandchildren will be paying this off…
Will bankrupt the country, sharply curtail research – that’s what keeps people alive. Experimental procedures…. “…something else when it’s your family member.”
Please contribute your thoughts – comment on the blog below
Share this on Twitter.
Above all, let’s not rush into something because of politics. Enough already.
To learn more about PIMA, visit www.pima-assn.org
(Pictured left to right)
Invest in areas you are already growing, Add new products
“If you are not investing in new products on an ongoing basis, you are starving your organization.” DK
“Success is 99% failure. Persistence usually pays off. Fail often. Fail fast. Fail cheap.” DK
Writes in Benefits Selling magazine
Voluntary products do not need to be ‘one size fits all’
Vol Ben is a market, not a series of products. Must see it as a market.
Look at the employee as the actual customer (not the employer). Cross sell.
Web enrollments (bring that up in a PDA), person to person, etc.
Portability – a personal plan that stays with you across employers
Will Rogers – “Even if you’re on the right track, you’ll get run over if you just sit there.”
We don’t have to grow. We wanted to grow. Need to sell products that fit the culture of the company. Need to have fun.
We’re good at administration, not selling. (“Man’s got to know his limitations.” CEastwood)
It’s not the revenue stupid, it’s the profit.
If we can do a thousand, we can do it well. We are a process-driven company. (Manual process?) Can’t scale.
Heavily invest in IT area – what about the Web. Wrapping services that we can charge for, around the products.
Not concerned about what happens in DC because we’ll just adapt.
Does the market want it from you?
To the extent as possible, always integrate. (outsource?)
One of the key distribution methods for indiv dental is the internet.
Dental individual carriers use the Web for quoting, enrollment, and e-issue.
Senior Market – big opportunity, benefits and care are a big deal.
Financial services sector showed a 51% loss of marketcap in 2008
Insurance success – insure availability of capital in the bad times
2009 Reason for Optimism
Weather the storm: Financial strength and the ability to pay claims
Agents will be taking a closer look at carriers – downgrades will eclipse upgrades in 2009
Responsibility to keep promises to our customers
Like most crises, this will paralyze some and energize others
Good crisis for the people in the affinity business – many have left the financial mainstream – unbanked and under-banked has doubled.
If you don’t like change, you’re going to like irrelevance even less. -Eric Shinseki
Innovative entry by entrepreneurs … acts of creative destruction – Schumpter
A Chinese heavy equipment brand just bought the Hummer brand.
Innovation is the main driver of wealth. – Summers
Reset – replacement of old products, markets and business models with the new
Innovation and entrepreneurial activities are the table stakes
Shifting from self gratification to thrift and conservativism
Note: Awesome visuals – more of a flash preso – headlines and images
Think transformation versus incremental improvement
Increase speed to market
MySpace is over, Facebook has peaked, and Twitter is hot
End of the golden age of credit
Consumers switching from cash spend mode to a cash preservation mode
Trends and association challenges
Avg AAA participant is 53 years old
People aren’t joining
View associations as transactional. But products are designed for WW2 generation – spend less on direct mail and more on online advertising that resonates with younger consumers – relevance
Stuffed mailbox image – offering real value in new ways
Need to generate the Wow factor – once-in-a-lifetime, appeal to dreams v wants
“Network neighbors” – people in your social network
18-27 – view SN’s as sources of reliable information
Mass Affluent – looking for gap and excess products that supplement core coverages – e.g. dental: bleaching and aesthetics
Medical tourism that includes “best doctor finder service”, pandemic protection
71 million Gen-Y’ers – 1977-1995 – annual income will increase from 1.8bln to 3.4bln in 10 years; eclipsing the boomers income; soon will replace boomers as the largest percentage in workforce; tax-savvy multi-taskers; Scuppies – Socially Consciously Upwardly-mobile; Get information about products from one-another, not “us” or MSM; network of friends; Snack-media consumers – tiny bits of information all the time
Mobile apps, SN, video and podcasting, and blogging
Online and mobile needs to play a more important role
My take – awesome content and a great exhortation to PIMA members. Ideas: Perhaps take the next 3-4 weeks, break your team into groups, use new venues offsite, and start rethinking future marketing and product strategies and tactics. Is it time to Re-engineer budgets and resources, find ways to learn, assign some tactical reading, get some favorite links to track, develop a private wiki, perhaps a team blog, and begin the transformational process? You’re leaders. Can you Lead out of this mess? What can you Change? How have you Innovated? It’s scary, but time to take some calculated risks? Can you keep doing what you’ve always been doing? Happy to help facilitate your efforts – and surely help develop any ensuing insurance technology… Photo Gallery
(Working on the conference podcast on attendees thoughts on the Healthcare reform effort in Washington… next.)
Interesting collection of blogs and writing on the ObamaCare that linked to my last post. Thanks Coach P.
Sale of a Private/Personal Health Insurance Policy to become ILLEGAL. Read the article from INVESTOR’S BUSINESS DAILY.
One stat overheard: relative to insurance policy billing, one TPA is seeing 38% ACH versus 12% Credit Card. The rest would be non-electronic direct pay… billing statements, checks, etc..
PIMA members need to be more engaged in the HC Reform debate. Stop the presses. Engage in this. It very likely could mean the end of the business, or at least a big segment of the business – health insurance. I can help them get engaged.
Here’s a bright spot in the new law. Now this addresses costs. Halleluja! “The bill further requires that individuals applying to state and federal health programs be able to enroll and manage their eligibility information online.” Need help with that? Let me know…
There’s also a debate about insurance regulation – state or federal. PIMA folks need to voice their takes and opinions. Join the conversation.
Frank Fimmano, PIMA President, AON Consulting SVP
Great story from someone who knows first-hand – The Fed’s (CMS) have been atrocious to deal with this year. They keep changing their minds. As an example… “Rules changed about maximum commissions – end of Dec08, they gave us 4 days to make the change. We had to pay the renewals on everyone. CMS said guidance would be out in February. It finally arrived in May. Then they changed again causing charge-backs and re-apply’s. Then they made an error with the file – and sent a new file – only 20% of the original file. But the numbers didn’t look right. Then they reversed the decision on who should get paid what. They seem to be ignorant people, making it difficult to do business…” My take – So private marketing organizations say to heck with it, we’ll sell something else. Then the consumers will have to get the insurance directly from the government – CMS. Thus pushing the government solution. Any other takes on that? Might the same concepts and issues come into play with ObamaCare?
Customer Respect Group – if you’re involved in agent distribution, you might want to check our this study. These guys know what they’re about. They added a lot of value to the launch of the new metlife.com site (which I believe does a nice job with helping educate consumers on life insurance and whether term or permanent is the best fit for you). Check out this study.
Great new post by Lindsay Resnick, the new CMO with Gorman Health Group. “Never has the value chain been more important to a Medicare plan than today.” Especially like #6. How do you do this “… fully trained, credentialed, certified, and monitored … moved away from a single source distribution strategy to…” without a Web development company, outsourced partner? Please comment.
Insurance marketers, take note: “…may think their traditional advertising is working, when in fact…” Great post on the need for excellence with Web marketing – and thus Web design and architecture. Don’t overlook the ALL IMPORTANT Information Architecture – both on the human side and the data side. I first came to appreciate IA in 04/05 when someone sat me down and explained it to me. If you’re involved in Web-anything, be sure to understand IA, at least at a high level. Here’s something I wrote on a related subject – from the Web marketing perspective.
The Aartrijk Brand Camp – make your reservations now – September 28-30, 2009 / Hotel Sax Chicago. This is going to be an extremely effective event for understanding branding and related marketing in the new economy…. short, sweet, creative, stimulating, attended by some some of the brightest lights in the insurance biz. Tell them Mike sent you. Love to see some of you there. Let’s turn this biz on its ear! Can insurance be FUN! YES!!!!!!!!!!!!
This week – PIMA 2009 Summer Conference. Should be interesting. Great content as usual. Hope the speakers really talk about the good stuff.
Some recent pics:
Cool Picture from Cleveland City Stars
Fireworks shot “SuperNova”
Very cool horn
Most amazing God-story … of this woman and her mom