I was honored to present to the National Association of Insurance Commissioners (NAIC) at the December meeting in Miami. That was the second NAIC conference presentation in 2016. In Miami, the presentation was to the committee on Market Regulation and Consumer Affairs. To industry insiders, this is known as the “D Committee.”
The presentation focused on the need for transparency in the insurance industry. Without doubt, transparency greatly benefits consumers, the industry and regulators.
Transparency Benefitting Other Industries
Transparency in other industries has proven beneficial for both the industry and consumers. Here are a few examples:
- Airlines – transparency lets consumers know if they’re getting a fair price
- Collectibles – Ebay resulted in collectors having confidence they weren’t getting cheated
- Body cameras on police – both the public and the police feel safer
No one predicted transparency would benefit both consumers and the industry in all three of these examples. Yet, that’s what has taken place. The insurance industry is about to experience similar results.
Why the Industry Needs Transparency
The following are a few of the problems transparency addresses:
- Do your producers feel price is all that matters?
- Is your company struggling to attract millennials?
- Are the large advertising budgets of competitors causing you to lose customers?
Success Through Transparency
Carriers are suffering the problems described above in large numbers. In fact, our analysis clearly shows that the majority of carriers that are doing a great job for consumers are losing market share. “How can this happen,” you may ask? The answer lies in the lack of transparency.
The best companies should not be losing market share. The solution is transparency. This is why the insurance industry will embrace transparency with surprising swiftness.
Change is Coming, Get Ready
For the many great carriers, transparency will deliver levels of success not previously achievable. These companies are working hard to do a good job for policyholders. Nevertheless, they face challenges when trying to attract the younger generation. Furthermore, current customers often don’t know if they should be happy with the service or not. How could they possibly know? After all, most consumers only write checks for insurance. It’s infrequent that most consumers test the value of the protection promised.
Transparency is the solution to the issues outlined above for both agencies and carriers. We invite you to work with us to deliver a healthier industry and happier customers.