[Every facet of the financial services industry is in the process of being reviewed, rethought and rejiggered. Being in an operating environment of accelerating business and cultural change does that sort of thing to industries. The insurance industry and its distribution pipelines have been subjected to intense scrutiny and has led to an external technology revolution under the banner of “InsurTech,” as well as internal business model and client engagement innovation.
To better understand the underlying dynamics of some of the changes developing in the insurance distribution arena, we reached out to new CEO Brian Mann who has restructured C2P Advisory Group — a 10-year-old Cleveland-based insurance marketing organization (IMO) — into Clarity Insurance Marketing. Our discussion explores how their changes embody a needed strengthening in focus, operations and engagement strategy for the industry.]
Bill Hortz: As an insurance industry veteran and entrepreneur, please share with us your perspectives on the insurance industry.
Brian Mann: As the insurance marketplace evolves faster and faster, the insurance industry and our businesses will be challenged to adapt to new ways of delivering on the changing needs of our clients and the marketplace at large. Advisors and insurance companies will need to be able to adapt quickly to a rapidly changing business world. They will need to stay “process driven” and embrace technology to counter these rapid changes. The reality is that it is not a choice — it is a necessity.
Your partnerships and alliances should not only fully understand adjustments needed in this new environment, but they should also be able to swiftly enact changes that make regulatory adjustments and business innovation easy on your business model and protect you from issues. Some alliances may provide you with expert counsel on rules and regulation, while the best firms will be there with ongoing resources and processes to help make conducting business simple. During our IMO restructuring process, I believed in building a firm around the mantra, “simplicity is the ultimate sophistication” and, in turn, provide guidance to our advisors.
The important message here is that we can control how we respond to and embrace change going forward for the benefit of our customers, teams and stakeholders.
Hortz: What are your biggest concerns today and how do you see the industry evolving into the future?
Mann: My main concerns are persistently low interest rates and the eroding of insurance “guarantees” due to the low rate environment. As well, an aging distribution force and the lack of succession planning is concerning, especially among independent advisors, coupled with a lack of new “talent” entering the industry.
As to industry evolution, I see product innovation to counter low-inflationary environment. I feel advisors will be adopting a more holistic planning model incorporating insurance and investment management as a “package.” Concurrently, technology will be reducing the need for a large field force. New and existing advisors will no doubt be joining larger “ensemble” practices to leverage economies of scale and centralize financial planning.
Hortz: How would you define the mission for innovation in the insurance distribution space?
Mann: The mission would be a marriage of technology, insurance product solutions and advisor distribution partnering. Technology and innovation will add efficiencies in everything from process competencies to the timing of transactions to how we communicate with clients in the future.
Hortz: How was your restructuring and rebranding of C2P Advisory Group IMO into Clarity Insurance Marketing specifically addressing some of these industry issues?
Mann: Our restructuring was focused on providing “Clarity” on how insurance products fit into a holistic plan and the correct product positioning and documentation to meet a Best Interest standard. As advisors decide how and whom to conduct business with, they need to be certain to have a plan for insurance selection and ongoing diligence. The future of financial services will get easier in some ways and tougher in others. As advisors face their valued client base, they need to be certain to have the very best team behind them! That was in our minds and our design as we went through our IMO restructuring.