Two-thirds of insurance firms are looking to add new products or services to their distribution channels in the next year, a survey released Monday by the Inter-Company Marketing Group found.
The non-profit business networking organization surveyed 53 companies and found over 61% of respondents say they are looking for a new product or service to add to their distribution channels. Seventy percent of respondents said they already offer more than their core products and services; over three-quarters said product diversification was the main reason for doing so. Forty-eight percent of respondents said life insurance was their core product.
Over 28% of respondents said independent agents were their best opportunity for growth, and nearly 17% said the Internet was their best opportunity. Just 9.4% of respondents said broker-dealers provide the best opportunities for growth.
Independent agents scored high in other areas, as well. Of the 40 respondents that ranked distribution channels, 22% said independent agents provided better distribution retention than employed agents (20%) and broker-dealers (15%). Twenty-seven percent said independent agents provided better product placement ratios than broker-dealers (18%) or 1099 agents (13%). Twenty-two percent of respondents said independent agents had the most predictable production-to-expense ratios.
Of the 50 companies to describe their primary target audience, 46% serve the middle income market, and 40% serve seniors. Almost one-quarter focus on business owners or insurance companies, and 20% serve blue-collar workers. Just 8% said affluent investors were their primary target audience.
Of the 39 companies that indicated their top resources for identifying new products, 59% said market research and customer feedback was their top resource. Fifty-four percent depend on distribution feedback and market knowledge for identifying new products and services. Just 28% turn to industry organizations and publications.
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