Just as Starbucks had a basic understanding of what the customer wants, so, too, does the insurance industry need to take a fresh approach and reach out to solve the needs of the average American, according to Fred Jonske, president and CEO of M Financial Group, Portland, Ore.
Jonske’s remarks followed a panel he participated in during an annual insurance seminar by Standard & Poor’s Corp. here. The panel focused on life distribution issues.
It is the ability to reach out and understand what consumers want that makes it possible to sell a $4 or $5 cup of coffee, he continued. Beyond that understanding, CEOs in the industry must be willing to take the chance and move upstream if necessary to reach the average consumer, he says.
During the panel session, moderator Kevin Ahern, a director with S&P, noted the opportunity that insurers have for providing consumers with continued income.
And Jonske noted that products such as those that have secondary guarantees are being driven by market demand and not by distributors.