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Chris Zagorski Archive for November, 2009
Is social media the answer for insurance companies?
A recent article in National Underwriter Property & Casualty talks about social media and advanced technology in the insurance industry: “The study by Deloitte suggests that firms that are successful will master technology and social media to interact better with a widening age spectrum of customers and employees.”
It’s an interesting solution. Social media and technology are being talked about a lot, but it seems like little is being done. I’m interested to hear what you all think about this. When do you think insurance products will have a channel in social media? Will it help drive sales and build relationships?
Another interesting issue raised by this article is how the insurance industry needs to attract people into the industry. How can insurance companies become more interesting places to work?
“My dad’s recession”
How has the recession impacted Echo Boomers (Gen Y, born between ’77 and 94’)? Well…maybe you should ask their parents.
Our consumer surveys indicate Echo Boomers remain relatively unscathed from this recession. Many are still in school and those that aren’t are establishing careers, beginning families and just starting to settle into their “adult” lives. Their parents still have a major impact on them.
While Boomers and Gen X adults have been deeply impacted by the “Great Recession,” Echo Boomers wake-up call comes from seeing themselves in 25 years through their parents’ situations today. These young adults are quickly gaining a new appreciation for the importance of retirement savings, and they’re actively planning for their financial futures.
How do you think this will change as the economy recovers? Will young adults follow their frugal dreams of today, or will they be sucked into the cycle of spending and debt that Gen X has suffered?
Intimidated by annuities? Insurers want to help
Nearly two in five insurance agents (39%) told us they don’t sell annuities. Among agents with less than five years’ experience, that percentage rises to 45%. Annuities are one of the most complex investment products available; hence, insurance producers’ hesitance.
However, I’ve seen an increase in direct mail sent to insurance producers about annuities and “guaranteed income.” Over the past three years, it seems insurers have become more motivated to educate producers about annuities. It’s a smart move: agents need to know about the changes to annuity products caused by recent volatility in investment markets. Also, consumers are less willing to accept risk nowadays, so guaranteed income annuities are a safe, reassuring option.
By teaching insurance producers more about annuities, insurance companies give their agents more reason to sell them to consumers. Market volatility is making many consumers turn an eye to the security of their retirement accounts, so I believe guaranteed income products are poised to do well in this economy. What do you think? Are annuities an easy sell if producers can explain them to consumers?
It’s about time: cell phone coverage in the comfort of your own home
Need to step into the kitchen, stand on a wooden crate and strain your neck upwards to make your cell phone work in your apartment? Yeah, we hear you…
Apparently, so does AT&T, a provider that’s been critiqued for service and coverage quality issues. In response, AT&T launched 3G MicroCell—a product designed to provide “5-bar coverage” in customers’ homes, offices and other buildings where coverage is limited or non-existent. The device acts like a “mini cell tower”, improving wireless coverage by connecting through existing broadband Internet.
Standing out from other wireless providers that offer similar products (i.e. Sprint and Verizon), AT&T is using direct mail, email and print to market its new device to existing customers. They’re also selling it at a deep discount to customers who add an AT&T Unlimited MicroCell Calling plan.
It’s smart timing for AT&T. The company needs to combat criticism about network quality and appease iPhone users, especially as AT&T’s iPhone exclusivity deal with Apple nears expiration. Is a separate device the answer for AT&T? Or will yet another cost just to talk simply irk customers more?