[LTPC-discussions] Please read Progeny article on banks selling insurance
S T Cuscovitch
ltpc-disc@ltpcalums.com
Sat, 5 Jul 2003 08:33:13 -0400
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Interesting -- you asked for comments. Here are some:
<...Maybe they want to market LTCI directly through banks?...>
http://www.progenymarketing.com/resources/1Q2000_1.htm
<...Rather, most banks have been buying agencies or partnering with =
traditional agencies and trying to shoehorn these entities into their =
existing infrastructures. It won't work. Here's why: The traditional =
agency system is faltering. Agent-based distribution is expensive, =
unwieldy and personality-dependent -- a combination that has left large =
segments of the population underserved...>=20
Agree
<...Banks that adopt this business model risk saddling themselves with =
the same problems that plague the traditional insurance industry...> =20
Agree
<...By stripping out high commission costs and selling directly to =
consumers via call centers, banks eliminate much of the delivery and =
administrative costs that curb insurance companies' ability to sell =
profitably to a broad base of customers...>=20
Maybe - this is Progeny's sales pitch to banks. Unproven whether banks =
will be the success story.
<...This creates opportunities for banks to "bundle" financial products =
typically associated with specific life events. By integrating direct =
mail, call-center marketing and branch-based selling, banks can =
effectively target customers at specific life stages and sell them a =
wide array of financial products...>=20
Agree that LTC must be part of an integrated [financial] plan, though =
other institutions are in a (better?) position to "bundle" financial =
products.
Further thoughts below...=20
----- Original Message -----=20
From: S T Cuscovitch=20
To: ltpc-disc@ltpcalums.com=20
Sent: Thursday, June 19, 2003 12:12 PM
Subject: Re: [LTPC-discussions] What this is really about!
<...[3] Ramp-up in hiring (w/o corresponding revenue uptake) is usually =
a tell-tale red-flag of an enterprise on its "last hurrah". Have seen =
this so many times.=20
Did LTPC's business model/strategy simply fail?...>=20
Ans: LTPC's business model -- became (or becoming) a dinosaur. =20
<...Was LTPC profitable?..>
Ans: Probably not (especially after hiring & training binge). Opaque =
accounting obscures -- who can answer for sure?
<...And how was the business of Long Term Care ever a logical, strategic =
fit to Cendant or Progeny?...>
As a strategic marketing organization, Progeny is able to "productize" =
the market intelligence generated -- this intelligence gathered in part =
from the efforts of LTPC field agents. It's no big deal for Progeny to =
incur a small temporary loss w/LTPC (despite binge hiring & training) =
for this intelligence.=20
<...By Gregory DL Morris ...almost 30 years since Fireman's Fund--now =
part of top underwriter GE Financial Assurance--introduced LTCI, the =
sales statistics remain dismal...> Agree
Whoever can solve marketing issues w/respect to LTCi stands to make a =
bundle. Progeny is (or its principals are) in a great position to do =
this.=20
http://www.progenymarketing.com/strategies/strategic_planning.html
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<DIV><FONT face=3DArial size=3D2>Interesting -- you asked for comments. =
Here are=20
some:</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2><...Maybe they want to market LTCI =
directly=20
through banks?...></FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial size=3D2><A=20
href=3D"http://www.progenymarketing.com/resources/1Q2000_1.htm">http://ww=
w.progenymarketing.com/resources/1Q2000_1.htm</A></FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial size=3D2><...Rather, most banks have been =
buying agencies=20
or partnering with traditional agencies and trying to shoehorn these =
entities=20
into their existing infrastructures. It won't work. Here's why: The =
traditional=20
agency system is faltering. Agent-based distribution is expensive, =
unwieldy and=20
personality-dependent -- a combination that has left large segments of =
the=20
population underserved...> </FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Agree</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2><...Banks that adopt this business =
model risk=20
saddling themselves with the same problems that plague the traditional =
insurance=20
industry...> </FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Agree</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial size=3D2><...B<FONT face=3DArial size=3D2>y =
stripping out=20
high commission costs and selling directly to consumers via call =
centers, banks=20
eliminate much of the delivery and administrative costs that curb =
insurance=20
companies' ability to sell profitably to a broad base of =
customers...>=20
</FONT></FONT></DIV>
<DIV><FONT face=3DArial size=3D2><FONT face=3DArial =
size=3D2></FONT></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2><FONT face=3DArial size=3D2>Maybe - =
this is Progeny's=20
sales pitch to banks. Unproven whether banks will be the success=20
story.</FONT></FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial size=3D2><...This creates opportunities for =
banks to=20
"bundle" financial products typically associated with specific life =
events.=20
B<FONT face=3DArial size=3D2>y integrating direct mail, call-center =
marketing and=20
branch-based selling, banks can effectively target customers at specific =
life=20
stages and sell them a wide array of financial products...>=20
</FONT></FONT></DIV>
<DIV><FONT face=3DArial size=3D2><FONT face=3DArial =
size=3D2></FONT></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2><FONT face=3DArial size=3D2>Agree =
that LTC must be=20
part of an integrated [financial] plan, though other institutions are in =
a=20
(better?) position to "bundle" financial products.</FONT></FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial size=3D2>
<DIV><FONT face=3DArial size=3D2>
<DIV></FONT>Further thoughts below... </DIV></DIV></FONT><FONT =
face=3DArial=20
size=3D2><FONT face=3DArial size=3D2></FONT></FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial size=3D2>
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B> <A=20
href=3D"mailto:scuscovitch@sagetele.org" =
title=3Dscuscovitch@sagetele.org>S T=20
Cuscovitch</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
href=3D"mailto:ltpc-disc@ltpcalums.com"=20
title=3Dltpc-disc@ltpcalums.com>ltpc-disc@ltpcalums.com</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Thursday, June 19, 2003 =
12:12=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [LTPC-discussions] =
What this=20
is really about!</DIV>
<DIV><BR><...<FONT face=3DArial size=3D2>[3] Ramp-up in =
hiring (w/o=20
corresponding revenue uptake) is usually a tell-tale red-flag of an =
enterprise=20
on its "last hurrah". Have seen this so many times. </FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial size=3D2>Did LTPC's business model/strategy =
simply=20
fail?...> </FONT></DIV>
<DIV> </DIV>
<DIV>Ans: LTPC's business model -- became (or becoming) a =
dinosaur. =20
</DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><...Was LTPC profitable?..></DIV>
<DIV> </DIV>
<DIV>Ans: Probably not (especially after hiring & training binge). =
Opaque=20
accounting obscures -- who can answer for sure?</DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial size=3D2><...And how was the business of Long =
Term Care=20
ever a logical, strategic fit to Cendant =
or Progeny?...></FONT></DIV>
<DIV> </DIV>
<DIV>As a strategic marketing organization, Progeny is able to=20
"productize" the market intelligence generated -- this intelligence =
gathered in part from the efforts of LTPC field agents. It's =
no big=20
deal for Progeny to incur a small temporary loss w/LTPC =
(despite binge=20
hiring & training) for this intelligence. </DIV>
<DIV> </DIV>
<DIV><...<FONT color=3D#000000 face=3DArial lang=3D0 size=3D2=20
style=3D"BACKGROUND-COLOR: #ffffff" FAMILY=3D"SANSSERIF"><I>By Gregory =
DL Morris</I>=20
...almost 30 years since Fireman's Fund--now part of top underwriter GE=20
Financial Assurance--introduced LTCI, the sales statistics remain =
dismal...>=20
Agree</FONT></DIV>
<DIV> </DIV>
<DIV>Whoever can solve marketing issues w/respect to LTCi stands to make =
a=20
bundle. Progeny is (or its principals are) in a great position =
to do=20
this. </DIV>
<DIV> </DIV>
<DIV><A=20
href=3D"http://www.progenymarketing.com/strategies/strategic_planning.htm=
l">http://www.progenymarketing.com/strategies/strategic_planning.html</A>=
</DIV>
<DIV> </DIV></FONT></DIV></BODY></HTML>
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