State of the Industry Address
Presented to:
LOMA Financial Inforum 2010
Presented By:
Steven Callahan
Practice Development...
© Robert E. Nolan Company
www.renolan.com | Page 2
LOMA CFO Inforum
May 17, 2010
Agenda
§Major Trends
§Executive Survey Fi...
© Robert E. Nolan Company
www.renolan.com | Page 3
LOMA CFO Inforum
May 17, 2010
Major External Trends Impacting Industry
...
© Robert E. Nolan Company
www.renolan.com | Page 4
LOMA CFO Inforum
May 17, 2010
1. Industry Lags Economic Recovery
§ Grad...
© Robert E. Nolan Company
www.renolan.com | Page 5
LOMA CFO Inforum
May 17, 2010
Consumer Reactions
§ Flight to “Quality”
...
© Robert E. Nolan Company
www.renolan.com | Page 6
LOMA CFO Inforum
May 17, 2010
Significant shift in Product Mix
§ Consum...
© Robert E. Nolan Company
www.renolan.com | Page 7
LOMA CFO Inforum
May 17, 2010
Consumer and Policy Realities
§ Good chan...
© Robert E. Nolan Company
www.renolan.com | Page 8
LOMA CFO Inforum
May 17, 2010
Prevalent Industry Reaction to Turmoil
§ ...
© Robert E. Nolan Company
www.renolan.com | Page 9
LOMA CFO Inforum
May 17, 2010
Common Tactics for Today’s Risk Managemen...
© Robert E. Nolan Company
www.renolan.com | Page 10
LOMA CFO Inforum
May 17, 2010
2. Regulatory Oversight Will Increase
§ ...
© Robert E. Nolan Company
www.renolan.com | Page 11
LOMA CFO Inforum
May 17, 2010
Cost of Compliance Will Rise
§ 97% of su...
© Robert E. Nolan Company
www.renolan.com | Page 12
LOMA CFO Inforum
May 17, 2010
Governance of Resources Critical
§ Stron...
© Robert E. Nolan Company
www.renolan.com | Page 13
LOMA CFO Inforum
May 17, 2010
3. Demographic Shifts Are THE Trend
§ Mu...
© Robert E. Nolan Company
www.renolan.com | Page 14
LOMA CFO Inforum
May 17, 2010
Most Significant : Demographic Differenc...
© Robert E. Nolan Company
www.renolan.com | Page 15
LOMA CFO Inforum
May 17, 2010
Consumer Priorities
1. Innovation
– Fina...
© Robert E. Nolan Company
www.renolan.com | Page 16
LOMA CFO Inforum
May 17, 2010
Consumer Priorities
5. Convenience
– Tod...
© Robert E. Nolan Company
www.renolan.com | Page 17
LOMA CFO Inforum
May 17, 2010
Consumers are not the only impact
§ Empl...
© Robert E. Nolan Company
www.renolan.com | Page 18
LOMA CFO Inforum
May 17, 2010
Industry Realities
§ Commoditization
– P...
© Robert E. Nolan Company
www.renolan.com | Page 19
LOMA CFO Inforum
May 17, 2010
Employees
52.5%
27.5%
20.0%
Less than 50...
© Robert E. Nolan Company
www.renolan.com | Page 20
LOMA CFO Inforum
May 17, 2010
Strategic Priorities
Maintaining our cur...
© Robert E. Nolan Company
www.renolan.com | Page 21
LOMA CFO Inforum
May 17, 2010
“What Industry Practices are most likely...
© Robert E. Nolan Company
www.renolan.com | Page 22
LOMA CFO Inforum
May 17, 2010
“What Industry Practices are most likely...
© Robert E. Nolan Company
www.renolan.com | Page 23
LOMA CFO Inforum
May 17, 2010
What will the greatest strategic
challen...
© Robert E. Nolan Company
www.renolan.com | Page 24
LOMA CFO Inforum
May 17, 2010
What will the greatest strategic
challen...
© Robert E. Nolan Company
www.renolan.com | Page 25
LOMA CFO Inforum
May 17, 2010
Primary Sources of Growth
Deeper penetra...
© Robert E. Nolan Company
www.renolan.com | Page 26
LOMA CFO Inforum
May 17, 2010
Key Target Markets of Focus
Market Segme...
© Robert E. Nolan Company
www.renolan.com | Page 27
LOMA CFO Inforum
May 17, 2010
Primary Sales Strategies
Focusing on enh...
© Robert E. Nolan Company
www.renolan.com | Page 28
LOMA CFO Inforum
May 17, 2010
2.21
2.29
2.89
3.12
3.23
3.51
3.82
0 1 2...
© Robert E. Nolan Company
www.renolan.com | Page 29
LOMA CFO Inforum
May 17, 2010
3.07
3.23
4.04
4.05
2.29
2.36
2.45
2.52
...
© Robert E. Nolan Company
www.renolan.com | Page 30
LOMA CFO Inforum
May 17, 2010
Technology remains a challenge
§ Core Is...
© Robert E. Nolan Company
www.renolan.com | Page 31
LOMA CFO Inforum
May 17, 2010
Document management - imaging and workfl...
© Robert E. Nolan Company
www.renolan.com | Page 32
LOMA CFO Inforum
May 17, 2010
Most Likely Next Technology Projects
Web...
© Robert E. Nolan Company
www.renolan.com | Page 33
LOMA CFO Inforum
May 17, 2010
What are the most critical areas of
tech...
© Robert E. Nolan Company
www.renolan.com | Page 34
LOMA CFO Inforum
May 17, 2010
2.31
2.35
2.43
1.66
1.75
1.79
1.85
1.87
...
© Robert E. Nolan Company
www.renolan.com | Page 35
LOMA CFO Inforum
May 17, 2010
7 Characteristics of Successful Companie...
© Robert E. Nolan Company
www.renolan.com | Page 36
LOMA CFO Inforum
May 17, 2010
7 Characteristics of Successful Companie...
© Robert E. Nolan Company
www.renolan.com | Page 37
LOMA CFO Inforum
May 17, 2010
7 Characteristics of Successful Companie...
© Robert E. Nolan Company
www.renolan.com | Page 38
LOMA CFO Inforum
May 17, 2010
Questions?
Steven M. Callahan, CMC®
972-...
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201005 LOMA CFO Inforum: State of the Insurance Industry

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Overview of the key drivers and economics influencing the insurance industry in the coming years. Major trends in products, distribution, and service discussed.

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201005 LOMA CFO Inforum: State of the Insurance Industry

  1. 1. State of the Industry Address Presented to: LOMA Financial Inforum 2010 Presented By: Steven Callahan Practice Development Director Robert E. Nolan Company May 17, 2010
  2. 2. © Robert E. Nolan Company www.renolan.com | Page 2 LOMA CFO Inforum May 17, 2010 Agenda §Major Trends §Executive Survey Findings §7 Elements of a Successful Company
  3. 3. © Robert E. Nolan Company www.renolan.com | Page 3 LOMA CFO Inforum May 17, 2010 Major External Trends Impacting Industry 1. Economic 2. Regulatory 3. Demographic § Consumer Behavior § Product Portfolios § Investment Decisions § Distribution Complexity § Service Operations § Competitive Positioning
  4. 4. © Robert E. Nolan Company www.renolan.com | Page 4 LOMA CFO Inforum May 17, 2010 1. Industry Lags Economic Recovery § Gradual Recovery from Economic Recession – Potential of an extended jobless recovery – Unemployment and Underemployment remains an impact – Personal Debt influences buyer choices, withdrawals, lapses § Capital Shortage – Product Design and portfolio requires closer attention – Guarantees fine balance between competitiveness and risk / cost § Ratings – Consumer Confidence negatively impacted, Brand reinforcement needed – Cost of Capital cascades into investment and product decisions § Investment Returns – Constrained expenses limit technology and operational options – Product Performance in competitive marketplace with choices
  5. 5. © Robert E. Nolan Company www.renolan.com | Page 5 LOMA CFO Inforum May 17, 2010 Consumer Reactions § Flight to “Quality” – Shift to Term and selective Whole Life plans – Dramatic drop in Variable lines – Baby Boomer transition from Accumulation to Income • 2009 a substantial year for fixed annuities § Diversification – Multiple alternative investments – Greater competitive pressures § Security – Brand awareness – Ratings and financial stability § Still looking for flexibility – Financial returns – Transfers
  6. 6. © Robert E. Nolan Company www.renolan.com | Page 6 LOMA CFO Inforum May 17, 2010 Significant shift in Product Mix § Consumers are cautious and conservative in their choices – Large drops in market sensitive product lines, offset by shifts to whole life and growth in the blend of participation and return floors provided by Equity Indexed Annuities (EIAs)* § Sales through direct channels represented more than 20% of the policies, about 5% of premium sold, and 13% of the total face value* * Source: LIMRA
  7. 7. © Robert E. Nolan Company www.renolan.com | Page 7 LOMA CFO Inforum May 17, 2010 Consumer and Policy Realities § Good chance that many employees will face effectively compensation reductions of up to 50% § Risk of loss of home and reduced retirement account values forcing people to work longer § Lapses by count and by face remaining at their 10 year highs, while policy loans and rates remain a critical factor § Guarantees and price points are becoming an even greater factor in decision making § Even as the market recovers, the long term effects continue to cascade impacting strategies crossing product, market, distribution, and operational lines
  8. 8. © Robert E. Nolan Company www.renolan.com | Page 8 LOMA CFO Inforum May 17, 2010 Prevalent Industry Reaction to Turmoil § Most common response is stick with the fundamentals – Focus on core businesses and products – Leverage competitively differentiating expertise § Followed by tighter expense management – Search for expense reductions and operational efficiencies – Tactics: hiring freezes, eliminated projects, fewer products § Under an umbrella of increased risk management – Remaining very conservative in their investments – Minimal asset write-downs – Negative impact on investment income & customer returns § All this, while compliance and regulatory concern (and cost) increases
  9. 9. © Robert E. Nolan Company www.renolan.com | Page 9 LOMA CFO Inforum May 17, 2010 Common Tactics for Today’s Risk Management § Integrated enterprise approach in mitigating risk through increased cross-functional interactions § Utilizing assessment tools for measuring relativity of risk § Reducing reliance on rating agency opinions § Modeling broader range of scenarios and outcomes and then hedging against a wider range of scenarios § Increasing the emphasis on quality in acknowledgement that market risk tolerance is lower
  10. 10. © Robert E. Nolan Company www.renolan.com | Page 10 LOMA CFO Inforum May 17, 2010 2. Regulatory Oversight Will Increase § National Influence – National Office of Insurance – Changes in tax treatments will impact products – Health care reform impacting spending patterns and buyer needs § Ratings – Continued downward pressure on ratings – Impact of RBC measures § Suitability – Increased consumer protection – Complicated application review and approval processes § Commissions – Shifting away from heaped commissions – Full transparency and impact on distribution
  11. 11. © Robert E. Nolan Company www.renolan.com | Page 11 LOMA CFO Inforum May 17, 2010 Cost of Compliance Will Rise § 97% of surveyed executives stated new regulations will drive up the cost of compliance – Probably one of the most unfortunate lasting side effects of the crisis in the financial services industry. – Most of the problems centered elsewhere in the industry, all companies are expecting additional regulation and enforcement costs, putting a drain on already limited resources. § 77% of surveyed respondents indicated a change in tax treatments - especially estate taxes – would have a major industry impact – Preponderance of opinion is that the change is inevitable – Particularly relevant in the large, aging Baby Boomer market
  12. 12. © Robert E. Nolan Company www.renolan.com | Page 12 LOMA CFO Inforum May 17, 2010 Governance of Resources Critical § Stronger governance of corporate resources is required – Economic conditions have removed any organizational “slack” – Lower returns and increased competitive drive the need for targeted investments that achieve competitive advantage § Disciplined portfolio management methodology is required – Applies to resources, technology, investments, expenses, product introductions, distribution channels, all aspects – Increased management of budgets, operations, IT resources – Requires tighter gatekeepers, greater justification, stringent modeling, multiple critical decision points, validated paybacks
  13. 13. © Robert E. Nolan Company www.renolan.com | Page 13 LOMA CFO Inforum May 17, 2010 3. Demographic Shifts Are THE Trend § Multigenerational - 5 Generations to serve § Aging Baby Boomers impacting product design § Diversification of Nationalities and Ethnicities Consumers (Buyer Behaviors) Workforce (Sellers Market) Distributors (Aging Channels) All with unique and diverse concerns and interests
  14. 14. © Robert E. Nolan Company www.renolan.com | Page 14 LOMA CFO Inforum May 17, 2010 Most Significant : Demographic Differences § Key segments identified as primary targets of focus are : Boomers, Young consumers (Generation X & Y), Middle Market, and Ethnic segments – Aging Baby Boomers identified most important consumer shift as focus moves from accumulation to income – Next major shift is the younger generations, as companies want to understand more about appealing to both Generations X and Y – The Middle Market has been identified as greatly underserved, with a recognition of a need for insurance but limited means to access. Employer group approaches are growing here. – Rapidly growing in importance and focus are the ethnic markets, with many companies already targeting Hispanic population and others starting to recognize importance of additional segments
  15. 15. © Robert E. Nolan Company www.renolan.com | Page 15 LOMA CFO Inforum May 17, 2010 Consumer Priorities 1. Innovation – Financial services providers must match demand for diversity 2. Alternatives – Choice grows in intensity, comparison shopping is a given 3. Value – Seeking greater value for their dollar, flexibility in options, guarantees, and transparently clear, understandable contracts 4. Trustworthy Advice and Assurance – Consumers still look for trusted advisors to help with financial planning – The role of the agent remains, even with newer generations, although access method and timing of involvement may change
  16. 16. © Robert E. Nolan Company www.renolan.com | Page 16 LOMA CFO Inforum May 17, 2010 Consumer Priorities 5. Convenience – Today’s buyer is busy, multi-generational and culturally diverse – Insurers are expected to be able to do business when, where, and technologically how desired 6. Service – Expectations have increased for faster (real-time), smarter (empowered), and more caring interactions – Once and done expectations prevail – Market complexity is compounded by drive for service that is differentiated and customized to each segment – Competitiveness will be driven by service capabilities
  17. 17. © Robert E. Nolan Company www.renolan.com | Page 17 LOMA CFO Inforum May 17, 2010 Consumers are not the only impact § Employers must deal with maturing staff and their exit from the workplace. Retention of relationships and transfer of personal knowledge are now key issues – Increase in shift to virtual workforce for knowledge workers – Investments in technology reduce demand for clerical labor § Distribution Channels are finding their primary source of career and agency owners preparing for retirement yet there is insufficient new entrants into the sales force – Increased advertising and recruiting efforts to attract a younger generation to sustain the channel’s presence – Targeted ethnic recruiting in recognition of the need to address different market segments more effectively
  18. 18. © Robert E. Nolan Company www.renolan.com | Page 18 LOMA CFO Inforum May 17, 2010 Industry Realities § Commoditization – Product Price Points drive competitiveness – Returns and Guarantees a requirement – Low Margins a result § Simplification – Elimination of small print and caveats – Consumer transparency drives acceptance § Differentiation for Competitive Advantage – Service by segmentation – Brand appeal to discrete markets – Accessibility based upon buyer preferences
  19. 19. © Robert E. Nolan Company www.renolan.com | Page 19 LOMA CFO Inforum May 17, 2010 Employees 52.5% 27.5% 20.0% Less than 500 500 to 1500 More than 1500 Survey Population Company Type 65.12% 34.88% Stock Mutual
  20. 20. © Robert E. Nolan Company www.renolan.com | Page 20 LOMA CFO Inforum May 17, 2010 Strategic Priorities Maintaining our current financial rating is a critical business requirement 93% Process improvement is an integral method we use to achieve results 87% We have a clear vision, goal, and strategy to lead us through the next three years 83% Our current organizational structure is aligned with our strategies 83% Capital demands will play a material role in product/market decisions 83% We have the people talent necessary to drive the business forward 78% We are strategically reducing expense ratios over the next three years 72% Significant technology investments will be made to remain competitive 70% IT/Systems is effectively aligned with the business and focused on enabling growth 67% Use of Reinsurance will be increased to mitigate risk 37%
  21. 21. © Robert E. Nolan Company www.renolan.com | Page 21 LOMA CFO Inforum May 17, 2010 “What Industry Practices are most likely to change?” 1. Products – Focus on simplified, value-based products with basic features, fair cost, and easy-to-understand guarantees and benefits – Less generous guarantees necessary in certain variable products – There will be an exodus of some products or lines of business – Companies will be more cautious with product features – Investment returns will affect pricing as historical assumptions have been challenged – Introduction of modified term plans that approximate dial-a-term (select a face) and term/UL combos that allow flexible durations, issue ages, steps in face, and premium payments
  22. 22. © Robert E. Nolan Company www.renolan.com | Page 22 LOMA CFO Inforum May 17, 2010 “What Industry Practices are most likely to change?” 2. Distribution – Continue to seek lower cost ways of reaching customers – Less insurance sold in traditional ways, shift to new methods – Marketing brochures and illustrations will require more disclosures and suitability measures 3. Ratings and Risk – Less reliance on rating agencies for assuring investment quality – ERM & Asset Liability Management emphasis will increase – Greater focus on capital adequacy with more stringent regulations 4. Expense Management – Companies are building sales yet not making profits – Increased Cost-Benefit Analysis, more use of technology, greater focus on expense control, operations redesign and optimization
  23. 23. © Robert E. Nolan Company www.renolan.com | Page 23 LOMA CFO Inforum May 17, 2010 What will the greatest strategic challenges be over the next 3 years? 1. Profitable growth – Staying focused on core products to achieve deeper penetration – Improving persistency by better servicing in-force customers – Opportunistic acquisitions, when available 2. Distribution – New distribution approaches – Increasing recruitment – Improving retention of their agency force – Improve the quality of the distribution channel 3. Product innovation – Innovation in product development – Quickly deliver enhancements for new products and services
  24. 24. © Robert E. Nolan Company www.renolan.com | Page 24 LOMA CFO Inforum May 17, 2010 What will the greatest strategic challenges be over the next 3 years? 4. Reduce expense while improving service – Becoming more productive, efficient, and gaining economies of scale will help bring down unit costs – Technology, such as more efficient administrative systems including workflow, will help improve underwriting and the overall processing of life policies and annuities – The cost of innovation with multiple systems and outdated technology is still seen as a major barrier – Operational efficiency will have to be achieved without waiting on new technology given the barrier of high costs of technology The measure of success is achieving the goal of becoming the carrier of choice for agents while also reducing costs Focused Leadership + Commitment + Effective Execution = The Challenge
  25. 25. © Robert E. Nolan Company www.renolan.com | Page 25 LOMA CFO Inforum May 17, 2010 Primary Sources of Growth Deeper penetration of Existing Markets (including retention efforts) 88% Expanding Distribution Methods (work site, direct, career, bank, agency) 83% Greater Demographic Segmentation (age, ethnicity, gender) 63% Greater Behavioral Segmentation (shoppers, loyalists, service) 60% Acquisitions 58% Expanding into New Markets (bank insurance, financial planning) 54%
  26. 26. © Robert E. Nolan Company www.renolan.com | Page 26 LOMA CFO Inforum May 17, 2010 Key Target Markets of Focus Market Segment % Agree Middle Market 77% Older Generations (Age 55 and over) 60% New Generations (Age 30 and under) 60% Employer Market 51% Ethnic Segments 44% Affluent 36%
  27. 27. © Robert E. Nolan Company www.renolan.com | Page 27 LOMA CFO Inforum May 17, 2010 Primary Sales Strategies Focusing on enhancing existing products with unique features 100% Expanding existing field sales force 91% Focusing on retirement solutions market 81% Marketing of fixed investment products (life and/or annuities) 80% ………………………….. ………………………….. Increasing guaranteed benefits of variable products (including annuities) 32% Sales Strategy
  28. 28. © Robert E. Nolan Company www.renolan.com | Page 28 LOMA CFO Inforum May 17, 2010 2.21 2.29 2.89 3.12 3.23 3.51 3.82 0 1 2 3 4 5 Variable Life and Variable UL Variable Annuities Combo Products Universal Life (including Indexed UL) Fixed Annuities Whole Life Term Growth Product Lines
  29. 29. © Robert E. Nolan Company www.renolan.com | Page 29 LOMA CFO Inforum May 17, 2010 3.07 3.23 4.04 4.05 2.29 2.36 2.45 2.52 2.57 2.79 3.04 0 1 2 3 4 5 Consolidating physical locations Other Virtual and/or geographical Creating different levels of Customer Aligning operations with distribution Aligning operations with customer markets Creating different levels of Producer Consolidating similar functions across Increasing hours and days of service Expanding accessibility Accelerating service delivery Key Operational Strategies
  30. 30. © Robert E. Nolan Company www.renolan.com | Page 30 LOMA CFO Inforum May 17, 2010 Technology remains a challenge § Core Issue: What new technologies to invest in and when – With an influx of “appealing” technologies, disciplined management of IT resources is critical: avoid distractions (“shiny objects”) • There is a difference between appealing technology and cost effective, competitively enhancing solutions – Portfolio Management Strategy used for all IT related resources • Provide an effective framework for the evaluation, selection, and implementation of key projects: a consolidation of RFP, PMO, ROI – Every investment of scarce technology resources has to pass a rigorous filter before moving to the next stage § § Discipline addresses competing challenges – Determining priorities across competing interests for IT resources – Dealing with or consolidating multiple legacy systems – Limited availability of IT resources, scarce skillset – ROI on technology improvements, measured and delivered – Leveraging new technologies to enhance processes §
  31. 31. © Robert E. Nolan Company www.renolan.com | Page 31 LOMA CFO Inforum May 17, 2010 Document management - imaging and workflow 41% ……………………… Replace legacy administration systems 25% Consolidate administration systems 24% Online applications with e-Signatures 20% ……………………... Straight Through Processing (STP) of field applications 18% Tele-underwriting 18% Enterprise Risk Management systems 17% ………………………. e-Delivery of customer materials (policies, statements, etc.) 9% Social Networking (Twitter, Blogs, Facebook, etc.) 3% Technologies Already in Place
  32. 32. © Robert E. Nolan Company www.renolan.com | Page 32 LOMA CFO Inforum May 17, 2010 Most Likely Next Technology Projects Web self-service for distributors and/or customers 73% e-Delivery of customer materials (policies, statements, etc.) 72% Single-entry front ends (simplified multi-product entry systems) 63% Online applications with e-Signatures 63% Automated workforce management systems 62% Automated Straight Through Processing (STP) of field applications 61% ………………………………….. Social Networking (Twitter, Blogs, Facebook, Second Life, etc.) 21%
  33. 33. © Robert E. Nolan Company www.renolan.com | Page 33 LOMA CFO Inforum May 17, 2010 What are the most critical areas of technology focus going forward? § Leading the priorities list: Dealing with legacy systems – Many companies changing or modernizing their legacy systems – Integrating workflow and business process management (BPM) § Contending for top priority: Internet / web-based projects – Agent portals, E-App, Web self-service, expansion of E-business – Search for efficient ways to eliminate some work / expenses while providing better service to agents and policyholders § § Still near the top of the list: Straight Through Processing – STP remains an excellent solution to speed the new business and underwriting processes and to streamline other transactions
  34. 34. © Robert E. Nolan Company www.renolan.com | Page 34 LOMA CFO Inforum May 17, 2010 2.31 2.35 2.43 1.66 1.75 1.79 1.85 1.87 1.92 2.10 0 1 2 3 Distributor Call Centers Consumer Call Centers Policy Billing and Administration Policy Billing and Administration Agent Contracting (Licensing and New Business Entry APS Review and Summarization Corporate Functions (Accounting, HR, Payroll) Teleunderwriting / Initial Assessments Document Management (Mailroom, Imaging) Most Likely Functions for Outsourcing
  35. 35. © Robert E. Nolan Company www.renolan.com | Page 35 LOMA CFO Inforum May 17, 2010 7 Characteristics of Successful Companies 7 common characteristics of companies who achieve success year after year in sales, financial strength, and reputation 1. Leadership – Has a clear vision, goal and strategy – Ask tough and probing questions – Delegate but remain close to the issues at hand – Create an environment of consistent behaviors, high performance and learning Most companies have good leadership. In successful companies, everyone on the management team share the same clear vision of where the company is headed and can articulate it to others.
  36. 36. © Robert E. Nolan Company www.renolan.com | Page 36 LOMA CFO Inforum May 17, 2010 7 Characteristics of Successful Companies 2. Organizational Alignment – Structure is aligned with strategy – Measures and rewards aligned with these characteristics 3. Identifies and exploits niche market opportunities – Product / Customer / Channel Niches – Processing / Service Fee niches – ‘entrepreneurial’ mindset vs. ‘why this won’t work’ – Practical realty of how much will this add to the bottom line 4. Close pulse on the market, superior customer intelligence – Close agency / customer relationships – “In the marketplace” or flow of ideas – Organization aligned to listen, hear and act
  37. 37. © Robert E. Nolan Company www.renolan.com | Page 37 LOMA CFO Inforum May 17, 2010 7 Characteristics of Successful Companies 5. Nimble and quick to act – Minimal bureaucracy – Measured experimentation – Culture focused on problem solving, solutions, content / ideas – An organization able to adapt with minimal constraints 6. Targeted Investments in Technology – Analytical tools for risk management, marketing and sales – Portals, automation, and e-services – Electronic applications, E signatures – Easy to do business with (agents and customers) 7. Service Excellence – Differentiation based on service – Continuous improvement environment directed to improving service and reducing cost every year
  38. 38. © Robert E. Nolan Company www.renolan.com | Page 38 LOMA CFO Inforum May 17, 2010 Questions? Steven M. Callahan, CMC® 972-248-3727 office 206-619-7740 cell steve_callahan@renolan.com http://www.linkedin.com/in/stevencallahan Coming Soon – The Complete Survey Analysis: www.renolan.com/life THANK YOU FOR YOUR TIME!

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