Having trouble viewing the newsletter? View it online.

JUNE 2009

Upcoming Events

Best Practices Teleconferences
Visit our website for more information.

Supervision and Accountability: Achieving Your Best
June 17, 2009

Outstanding planning and extraordinary training are lost if a systematic approach of supervision and accountability is not employed.
More information

Register for the teleconference. Enter the Confirmation Number: 430624.

LAMP 2010 Conference
See the website for more information >>

What will the insurance and financial services industry look like in the next five years?

President of GAMA Canada

An amazing article published in March 2009 LOMA Resource magazine canvassed 10 industry executives to talk about where they see the North American financial services industry between now and 2014. Get your hands on a copy and discuss these issues with your teams.  Knowledge of the industry’s potential future allows for sound and timely decisions for your business. 

Fewer Companies in the Market

  • A continued consolidation driven by gaining economies of scale through mergers, books of business sales and expansion through acquisitions. With the global economic crisis, companies, not only their stocks, are on sale right now.
  • Many medium- and smaller-sized companies will enter into alliances and we will see the emergence of mega-carriers.

Blended Distribution Channels

  • Shifting to broader options including the web-based direct to consumer sales, worksite sales and retail channels.
  • Career channels will continue to shrink as boomer agents retire (unless aggressive recruiting is successful). Alternative distribution models will develop towards convenience and ease for the clients.
  • With product lines growing more similar and more competitive, the only differentiator will be service (and price). This is why good people are drawn to being a career advisor.
  • As the agency sales force begins to retire with and less recruits taking their place the industry will be heading a storm of succession planning issues.

Consumers Will Change

  • Consumers will seek out the brand companies that are financially strong and highly rated.
  • Driven towards long-term guaranteed products with limited exposure to market volatility.
  • Mortality will improve but morbidity will decrease. Long term care insurance and life insurance will be bundled for the mainstream market: baby boomers.
  • Consumers will demand cutting-edge products that will reduce the "shelf life" of term and whole life products before being replaced by newer versions. Universal life will likely continue its popularity.
  • The simplification of sales and support materials will drive the creation of multi-language policies and forms.

Emphasis on Niche Growth

  • Protection and income needs of the middle market, multicultural and echo-boomer markets (Gen X).
  • Retirement income needs of the boomers will drive product development of segregated funds and annuities.
  • The middle market is becoming more multi-cultural. We may see simpler products for selected markets.

Sophisticated Applications

  • Technology will allow consumers to have face-to-face access to advisors via broadband connections like Skype.
  • Faster computing and Internet access speeds will make technology a more powerful consumer tool (e.g. access to product rates will be everywhere, making the pricing of these products even narrower).
  • The idea of a local agent will change, with online and remote agents accessible at the touch of a button. We have been warned of technology being the next distribution system, but the fact remains that risk products like life insurance has to be sold by a human being to a human being.

Global Expansion

  • Global markets continue to offer growth opportunities, especially Asia where over half of the world’s population lives and which remains under-penetrated for financial products and services.
  • People wanting to survive these changes will have to become "students" of the financial industry and leaders must maintain a vision of the future.
  • A growing middle class in developing countries will provide fertile area of expansion.

The financial services organizations that is able to leverage the opportunities in the future will have to: maintain focus and direction, realign costs and remain streamlined, be agile enough to take advantage of openings as they arise, and choose effective partners to align with.

Great Marketing Ideas

GAMA International Canada members receive member pricing on all GAMA International products.

Great Marketing Ideas, the third book in GAMA’s Great Ideas series, offers an exclusive collection of proven marketing techniques that have contributed to the success of industry leaders. These powerful, practical ideas will help you revitalize marketing efforts in your own organization.

Order your copy of Great Marketing Ideas today.

Contact information for GAMA International Canada
390 Queens Quay West, Suite 209 • Toronto, ON • M5V 3A2
Tel: 416.444.5251 • Toll Free: 1.800.563.5822 • Email: Contact us
  • You were sent this message because you’re a member of Advocis or you’re on our email listing. If you do not wish to receive further emails and wish to unsubscribe, please send an email to info@advocis.ca.
  • At Advocis, we respect your privacy and the privacy of others. Read our Privacy Policy.
  • Add us to your email safe list: to ensure that future email messages from Advocis are not sorted to your bulk or junk mail folders, please add info@advocis.ca to your address book.
  • Please DO NOT reply to this email. If you have any questions or concerns, please email us at info@advocis.ca.