February 15th, 2012 | 
Author: Compelling Headline. I’ll get back to it at the end.
The PIMA 2012 Annual Meeting. On the surface, a big success. Solid numbers, lots of engagement, great feedback.
Some of my take-away’s:
Mary Jane Fortin, CEO of American General Life Companies:
Mary Jane Fortin - Challenges
Appreciate the Comments on Usability, Education, Consumer Experience, Plain Language, Japan as a model for consumer protection rates. Man do we have a LOT of work ahead of us if we want to take her challenge to heart. I know there are exceptions, but in general, as an industry, our Web sites are terrible, our communication with current and prospective policy holders is confusing, we don’t create nearly enough content, and so our penetration rates are extremely low by comparison.
Warren Hunter, Chairman of DMW:
Unintended but I heard someone put it, “raked several insurance brands over the coals” from a branding perspective. Heard a lot of people praise him for his content. Agreed on all fronts.
The Ignite sessions:
Lot of high praise from around the group. Great format, engaging content, good choices for speakers. Great work to Rick, Mark, Gerard, and Renee. <<See the pictures here>> Understand a video will be published soon. Especially liked Gerard and the importance of hygiene relative to lists. I’d be interested to know how many people have follow-up with him. Also liked Renee’s content around the ability to do contests and sweepstakes using Mobile – big opportunity for list building and cross-marketing. Again, interested to see how many people follow through and actually start doing something.
So glad HubSpot came. Key points I liked..
Kipp Bodnar - Powerful Trends
Don’t rent your Web properties – OWN!
Blog’s are the cornerstone of your Social Strategy.
Microsites and landing pages are hubs.
Email marketing – still critically important, but will run its course eventually.
Sold Out the Limited Supply of B2B books – encouraging
Inbound Conference in August, possible Boston Social Tech Boot Camp in conjunction with that.
At the closing reception, I had a very interesting conversation with one of the executives about more collaboration within PIMA with an express goal of increasing the protection rates within the US. The comment was that association marketers are perfectly positioned if we will do a better job coordinating our efforts.
Those final words from one of my favorite people in the group spun in my head all day Sunday as I made my way home. So I made some notes on the plane:
Back to the headline
Are PIMA members working to solve industry problems, really, or are they being seduced by big money? Yes, with the utmost respect, they’ve been successful in the past and as a result, big dollars are flowing. But will the processes, tools, and strategies that “got them there” keep them there? Perhaps it’s more about Comfort Zones. But either way…
A few poignant questions, understanding there are exceptions, but from a macro view:
Is our Industry as a whole badly positioned for online reputation management, organizational voice, crowdsourcing, socially directed buying, and the protection and advancement of the industry which these leading business concepts will nurture?
1. Very few industry players seem to be communicating well online, both B2B and B2C. Products seem to be often designed, developed, deployed, and maintained with weak consumer insight. There seems to be very little strategic and thoughtful collaboration between manufacturers, distributors, and strategic marketing partners. Government regulators and internal legal and compliance teams seem to be hopelessly out of touch and uninformed about core societal trends and business issues. Understaffing, underpayment, and inexperience seem to be rampant. Perhaps as a result, but certainly at the same time, US consumer impressions and demand for protection are at record lows. Is our industry leadership woefully behind the times, both individually and corporately, and thus putting the industry at grave risk?
2. Going further, it seems that the majority of industry leaders are at kindergarten, grade school, or at best, high school levels of competency with respect to critically important technologies like mobile, tablet, laptop, and Web software such as browsers, analytics, cloud-based tools, not to mention Social Tech tools. And so their leadership is often whispered as “male, pale, and stale”. Their down-lines and corporate hierarchies seem to be prone to follow suit, ostensibly taking the path of least resistance, waiting for their turn at the top. All this seems to be resulting in paralyzed, deaf, and mute insurance organizations – culturally, operationally, and societally. Generally True or False?
3. Product development and maintenance seems to be silo’d and overrun with fiefdom’s, protectionism, and politics. Marketing machines seem to be entrenched with archaic strategies and tactics, led by executives whose inherent characteristics of creativity and risk-taking have been beaten out of them over time, and who are now without vibrant information streams that keep their fingers on the pulse of their environments. Compliance departments are over-the-top too influential and stunting, themselves not tapping new technologies to keep pace with critically important changes on the legal and regulatory front, certainly not writing, creating content, and seeking to influence and lead.
4. Lastly, our industry, seems to be in need of a deeper, more functional overhaul. Should the association extend its industry leadership, a stronger insurance industry voice with expanding influence, a content machine driving education, conversation and solutions? Should the Web site, while continuing to be a hub for the logistics of the group meetings, etc., also grow to an insurance affinity network, media, and influence hub, possibly powerful enough to overcome any legal and regulatory threat, and helpful in growing the consumer demand for protection products?
IMHO, if we don’t urgently and immediately focus on these core issues in the next 18-24 months, we will look back and regret it. Yes, these are hard questions and strong statements, but I’d like to have these dialogs. But like the insurance exec alluded to, perhaps these are the questions that most urgently need attention so that we can grow our industry and see US protection rates like those of Japan, as an example.
A Helpful Step Towards a Solution?
Social Tech Boot Camp for Insurance Executives
I’ve put this together specifically to give insurance executives a small, private and safe place to grow their IQ with respect to Social. My understanding is fairly deep, both of Social and Insurance. The materials I have are spot-on Keynote slides. And my facilitation style in a small group is open, conversational, and yet passionate and instructional. See the comments and the video on the sub-page.
While not ALL the solution, certainly part of it. Crowdsourcing, Online Reputation Management, Organizational Voice, Rating Systems, Tools, Measurements, Compliance, Policies and Guidelines, Mobile, Information Streams, Consumer Intelligence, Game Dynamics, the Future – all items critically important to the future of insurance companies and agencies. What’s beyond Linkedin, Facebook, Twitter, Blogs, etc. (although Day 2 will be a 1/2-day session called You Incorporated – because executives need to know how to leverage the tools themselves ala Tony Hsieh, CEO of Zappos).
Thoughts? Comment below.
PS. As Ed mentioned in his closing remarks, remember the Give Back Tour, October 2012.
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Posted in PIMA, Social Tech | 
Tags: Insurance, Linkedin, marketing, PIMA, Sales, social, social media, Social Technologies, SocialTech
Mike,
First, this is an excellent summary of some of the key messages from the conference. I especially liked your reference to the average insurance population as being “male, pale, and stale”. Why else do you think I wear suntan lotion with a spf of 50? As usual, your rebuke of the industry is well warranted. As a group, PIMA is uniquely positioned to help turn this slow moving battleship around.
Don’t grow discouraged. My ears are still ringing from Kipp Bodnar’s presentation. His comments about mobile technology make you realize how at risk major corporations are if they don’t get their arms around this dynamic very soon. Somehow, we need to shift our priorities and create room for social networks. When and where is your boot camp going to be taking place?
Regards,
Ed Miltenberger
Mike,
What a great summary of the event! Thank you for including some of the ideas from my presentation. It was an awesome event and I am excited to see how the PIMA membership leverages these ideas in the future.
Good stuff Mike. Let's get together soon.
Mike, I think you raised some important points. I would say that there is a renewed interest and willingness to learn about the new technologies. Yes it might be slow going, but I think it's going in the right direction. My goal is to create a few test scenarios with a few folks using mobile technology to then showcase it for the group. The truth of the matter in my mind is that compliance issues muddy up the water alot for the group. Hence my idea of showcasing a few successful tests would help overcome the "compliance objections."
Mike: enjoyed your dialogue; much covered, and yes, some sure to cause push-back. I’d like to add my thoughts to your points 3 & 4 if I may.
While I do agree with you that we don’t readily see the breakthrough-type developments around product, and even delivery, I would offer that some explanation must be given to austerity movements within organizations, i.e., downsizings, open staff req’s being frozen or rescinded, etc. Thus, fewer productive hours for anything more than “business as usual”. I recently met with the CMO of a major life insurance organization, and he said his entire staff was taxed at 125%+ of capacity, and would be for the balance of 2012. At those levels, not only does burnout eventually occur, but out of necessity, focus is only on the tasks-of-the-day.
There certainly are glaring opportunities available to our acquisition-minded insurance marketers, but simply not always prioritized properly. As I noted in my IGNITE comments at PIMA’s Saturday presentation, less than 10% of carriers are utilizing the renewal billing mechanism as a vehicle for cross-selling and up-selling the next “right” product. Given both advanced/predictive data analytics, combined with the power of digital technology, it is not only possible, but also quite cost-effective, to drive incremental premium revenue from what has long been considered “a cost of doing business”, i.e., billing and collections. The saavy insurance marketers are seeing that true one-to-each offers can be delivered to the right buyer at the right time, often with triple-digit ROI’s. Recent research indicates that consumers spend an average of 3 ½ minutes looking at a billing statement, before taking action, making a payment, etc. Where else do we get that type of eyeball-time with our customer? Certainly not in an unsolicited direct mail kit. For my paperless friends, this technology can just as easily be “pushed” with pdf’s as well.
Regarding your “functional overhaul” thoughts, history shows that time takes time. My view of the PIMA organization is that we have dynamic, enthusiastic players in leadership roles within the organization (you included!). And progress is certainly underway. I saw that in the Business Partner brainstorming session on Saturday morning at the conference, and the ideas that flowed from that group – onto paper for consideration – were amazing! I’m an optimist; I see progress, not perfection. And I also see a renewed focus to keep moving in the right direction.
Keep up the thought-provoking dialogue! It serves to keep us all just a little sharper, reviewing, evaluating both personal and professional goals!
Hi Mike,
I (and several others at FTJ) have been huge advocates of moving towards a deeper relationship with social, mobile, Cloud, tablet (check out the new TIE app-nicknamed "power tie" ha), etc…I think we have really grown so much the last 2-3 years, but I know we are nowhere near to being "there" yet. It is a process for sure. I think that as we grow, PIMA needs to change and evolve to the new environment. Thanks for the write up Mike.
Ps: while most of us cannot change being "male" or "pale" we can chang the stale part. Just look at pale guys like Kip and Scott Klososky. White guys can be cool….lol-lmao.
Thanks,
Rick Jones
No intent to "rake" anyone over the coals. I wanted something to stimulate thinking and dialogue about brands and brand value and think that was achieved. As I said at the outset, I am not a brand maven — just a direct guy making obesrvations about what I see. I have the greatest respect for all the companies associated with PIMA and have worked with many.
The summary of the event is nice and concise. Thanks for wrap up.
Re Mike’s Point 2 from his airplane ride: social is here to stay and we need to figure out how to harness it, use it and measure it. Most companies are not tuned in to the impact or the importance as a tool to establish dialog with customers. I am a strong believer that the social media needs to keep the “social” aspect. These are not channels in which to sell — but rather cement relationships.
Great summary and thought provoking, concise commentary. PiMA is where we go to avoid being stale as well as where affinity goes to grow. Thanks.
Mike,
Good event summary! Thanks for the thoughtful review.
Clearly the industry is in transition and my belief is most leaders recognize the changes are rapid and they need to be on board. Kipp's presentation did a good job of demonstrating many of the relevant marketing changes do not require a complete shift from things that have worked in the past (mail) but simply provided guidance on how these tools can complement them and help us grow.
Bill
Mike, thought provoking as usual, keep it up. Point #2 reminds me of one of my favorite quotes these days. “The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, un-learn, and re-learn”( Alvin Toffler). It’s the un-learning and re-learning that’s tough for some senior insurance executives, it’s hard and it’s a real vulnerability. So, “paralyzed” might be a fair characterization vs. “mute” or “deaf”. In today’s fast business pace – not knowing what you don’t know will get you run over. I know that I need to specifically carve out time for my “strategic learning” or it doesn’t get done. Maybe there’s a theme to build on Mike?
I agree with almost everything you said above about the need for the industry to push the envelope more in its marketing apps, including social, mobile, et.al. I don’t, however, think that “big money” in the established techniques is at all hindering the advancement of those new methods. As you know, the established techniques are an increasingly difficult business/profit proposition. Sponsored insurance direct marketing is not nearly as lucrative a field as it was not too many years (or decades) ago. To combat that problem, many firms are diversifying into other sectors, or sub-sectors, of the industry in order to survive, while still trying to figure out how to leverage the marketing channels you focus on.
Unlike other products that have readily risen to the new apps, the consumer psychology around insurance is unique….people need it, don’t want to need it, don’t want to pay for it, and love to hate it. Knowing that insurance makes a ready, arbitrary target for every soap-boxer who wants to self-inflate by attacking it on a public (social) forum, understandably, I think, gives pause to insurance execs and marketers over just how engaged their mission should be in those venues. I think there’s still a lot of testing and refining to be done there.
There are also frequent sensitivities in sponsored environments….from the sponsors… over just how many exposures (sp. “inundations”) they want their members/customers, etc. to be subject to….for many good reasons.
I also think Mark Weishaar makes a very good point….it’s not so much about being stale, but more about the time compression in our business environments and processes not allowing for creative time and quality of thought. He’s also right , though, about the scope of opportunities today. The landscape is potentially richer than ever, but threading that needle without undue loss of time, money, reputation, etc. is still in the learning stage for this industry. You are right about the need for more, and more urgent, collaboration between manufacturers and distributors.
I also see a need for more cross-discipline/cross-sector observation and sharing. I’m “direct marketing” voluntary benefits every day to employee groups, and am constantly observant of things we do there that could be applied in the the affinity group sector….marketing techniques, underwriting techniques, product designs, business processes, etc., etc. It’s my old refrain….the business is homogenizing. Whether employees or members, the affinity principle is still the central lever, and it’s getting pulled in much the same ways for all types of groups. One big difference, however, is the greater extent of individual data we get from employers vs. what is typically available from affinity sponsors, even after enhancements. How do you reach a person’s Smartphone, or even e-mail, if you haven’t got the number or address (or permission to use them)?
So….that’s where you and specialists like you, come in….to provoke, facilitate, teach, etc., etc., and deliver tremendous potential value to the industry in the process. I don’t have the time or skills to observe and “translate” for insurance the best-practices in these applications as achieved by companies in other industries. That’s what you can do for us. Help us overcome the fears and negative inertia that keeps the industry from more-fully crossing the threshold by showing us how it works elsewhere, within and outside the industry, and help us transpose it to our world. To that end, I applaud your passion and your mission, as I always have. I wish we had 100 more like you.
Great summary Mike. On a very high level, I believe the "seduction of big money" ultimately comes from a responsibility we all have to our shareholders. I'm not saying I agree with that logic all of the time as it can be short sighted, but that is the reality.
Agreed that our industry does need a good shake up, but much easier said than done. At the end of the day, the industry leaders in how to best sell to customers are going to continue to be the Progressives and GEICOs of the world. Oh, an some smart brokers who are more forward thinking than others ;-)
Mike thanks for summing up this year’s meeting
so succinctly. I thought the presentation from Keith
Clausen of Envision International showed us how the
Insurance industry can leverage the Internet in new and intriguing ways.
By contrast Matrix Direct still has a valentines day promotion on its
site, last I looked it’s February 21. Does anyone care enough
to update the site, not a great first impression! The valentines
Promo might have been more memorable in a good way if it
Was done with a touch of humor.
Thanks for starting the discussion Mike!
Mike,
Based on my 30+ years of experience, I think the insurance industry was, and continues to be, male dominated. Traditionally, executives had staff to delegate work to, that they considered "minutia". I think a lot of that "old school "mentality still exists with regard to technology. I see this now to be more generational, as the younger set (men & women) seem to naturally embrace technology.
Another issue that may hold back our industry is how heavily regulated it has become. I think there may be some fear around doing something that may be considered "non-compliant". As an example, currently there are state DOI audits being conducted to ensure that ALL beneficiaries have been paid. NY had all major life carriers request detailed census data from their tpa's on ANY NY deceased insured dating back to 1986. Six other states are in the process of requesting similar type of information. We see that type of trend continuing, and I believe this will change the way insurance companies operate going forward.
All that said, I do see things turning around with regard to technology. I've been with my organization for 10 years, and I have seen a "sea change" in attitudes with regard to technology. Slowly, but surely, we as an industry are learning that embracing technology is no longer an option, but is essential to effectively compete in the marketplace.
Thanks,
Lisa
Lisa M. Wilson
Relationship Manager- Association Business
Specialty Benefits
UnitedHealthcare
Mike:
You have some very thought provoking comments! Items 2 and 3 really resonate with me. I will comment on item 1 though. Let’s face it “insurance” isn’t a very sexy product. There was a time in the ‘70’s and 80’s when the industry was very creative. Companies and producers both pushed the envelope with product development, marketing, and pricing. A few went off the reservation and all of us paid for it in one way or another. Hence the rise of compliance departments and increased governmental oversight.
I don’t think it’s being out of touch that is holding the industry back so much as how do we enter the social arena and remain compliant with what have become highly regulated products? Progress is happening but at a measured pace.
I totally agree with Item 2. Nothing has frustrated me as much in the past 12 years. Costs are a big factor but the products are not well designed either. Most products seem geared to one solution and lack flexibility.
Item 3: Like Springsteen said, “you end up like a dog who’s been beat too much so you spend half your life just coverin’ up”!
Mike, too true. Fantastic comments/input above. I am not sure if seduction of money is the driver…
My mantra is to be "male, pale but never stale."
All kidding aside, we both know this industry is ripe for major disruption and the smart money is on at least one of the Fab Four (Google, Amazon, Apple and Facebook) to get into financial services in a big way. It doesn't take a rocket scientist nor actuary to recognize just how vulnerable and weak many of the major banks and insurance companies have become due to financial hardships they have brought upon themselves as many of them also face deeper/wider regulatory challenges. Talk about poor reputation management! Many find their organizations wounded, paralyzed, male/female, pale, shocked and in some cases, overwhelmed and out of control. The blood is already in the water and the sharks are circling. As a case in point, Google has started their entry with Beat that Quote.com in the UK…first with credit card deals and loans then into insurance. Out of the Fab Four I would actually bet on Amazon being very successful in the insurance business because they deliver an excellent customer experience and can also accommodate an "opt into an agent" model with their merchant service capabilities.
So, bottom line, it behooves all of us to listen to thought provoking people like you and follow your lead.
At the end of the day, it is simply about intelligently leveraging many of the tools and techniques that we now have at our disposal to remain relevant and create a better customer experience. Keep the conversation going!!!
Mike great summary. I agree with question #2 and it is true. PIMA got started to expand the players and marketplace and today driven by social media we have the same chance to do it again.