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...ogy. Regardless of the industry, suppliers and distributors alike are embracin...rticularly the relationship between suppliers and distributors. As we've seen ...

...f policy wordings, products, and suppliers are often so daunted that they give up and rely on their suppliers to make decisions for them. Most suppliers and intermediaries act with the hig...nagement; availability of alternate suppliers; key customers; key facilities, ...

... expanded) . And insurance agents will emerge as infomediaries. Finally, both insurance companies and independent agents will learn to cooperate and collaborate with each other to serve end users more effectively and efficiently. At the same time, it's likely that some insurance companies will acquire or invest in their distribution partners in the same way pharmaceutical companies dealt with their distributors (Merck buying Medco and Baxter acquiring Hospital Supply Corp.) . Not all the observations, conclusions, and recommendations found in this report will be applicable to all independent insurance agents. Each one will have to analyze their own context and drivers of change and attempt to use lessons learned from other industries and other independent insurance agent companies to determine their own path. MAJOR TRENDS OUTSIDE THE INSURANCE INDUSTRY Embrace of technology. Regardless of the industry, suppliers and distributors alike are embracing the Internet and other advances in technology to propel their businesses to new levels. Those who adopted the Internet early on seem to love the new playing field, while latecomers are scrambling to catch up. Channel shifting. Financial pressures and consumer expectations are driving suppliers to distribute their lower-margin products through the most economical channels, sometimes bypassing intermediaries or reducing their commissions in pursuit of profitability. But this is only one side of the story. New roles in sales and service. A growing number of suppliers is viewing the product sale as the acquisition cost for securing long-term customer relationships. Increasingly, their intention is to find ways to free their distributors from the low-profit transaction and allow them to concentrate on higher-profit, value-added service and support. Consumers paying for service. As ...

...ss of 5% of gross sales. d. Main suppliers of the products, percent of total p...ce sensitive? Who are the top major suppliers in the industry? How technologically advanced and competitive are the suppliers? How are the relationships with the suppliers? 7. Any environmental issues tha...

...rance agencies are no exception. Suppliers with whom you have been doing busin...ssociations with known unscrupulous suppliers or vendors? Is the agency e...

... areas of expertise that are declining in importance or relative volume. Your Customers What identifiable customer groups does your agency primarily serve now? 1.____ 2.____ 3.____ 4.____ What other customer groups are important to the future of your business? 1.____ 2.____ What particular abilities to serve these groups does your agency possess that distinguishes it from other agencies? 1.____ 2.____ 3.____ Mark a plus (+ ) by the above products and areas of expertise that are gaining in importance or relative volume. Mark a minus ( -) by the above products and areas of expertise that are declining in importance or relative volume. CHECKING THE ENVIRONMENT What are the predominant businesses in the geographic area you've selected to serve? What's your penetration (market share) into these kinds of insureds? What suppliers aggressively target the businesses that are dominant in your area? Do you now have relationships with these suppliers? What risks do your primary carriers aggressively seek? What's your penetration (market share) into these kinds of insureds? What will it take for your agency to establish superior expertise in the products and services you choose to provide? What will it take for your agency to establish superior expertise in the products and services you choose to provide? Should you limit the products and services you provide? Or expand? (How?) Should you limit or expand the customer groups you serve? (How?) Should you limit or expand territory you serve? (How?) Find out what you don't do well. And then don't do it. Login or Register (for FREE ...

... . Adequate insurance will greatly reduce the financial cost of recovery from a disaster. In the extreme case, lack of proper insurance can result in a financial collapse. Probably the most obvious Business insurance covers the company against the death of a key executive. In a small company, the death of the key executive can often trigger a complete business failure. A larger business can take basic precautions, such as not allowing executives to travel together, but it still might experience a substantial financial loss. A business of any size can benefit from the purchase of Key Executive coverage payable to the business if a key executive dies. Business insurance, beyond the protection of owned and leased property, is often overlooked in the disaster planning process. Consider purchasing Business Interruption insurance for protection against the loss of suppliers or buyers, coverage of payroll expenses, and a multitude of other contingencies. Have a risk management professional help you identify and analyze your company's hazards. These three categories represent ways companies respond to risks: 1. Risk Avoidance: Take action to reduce or eliminate the risk. 2. Risk Transfer: Reduce financial damages by assigning the risk to an insurance company or other party. 3. Risk Acceptance: To the extent that it is not practical or possible to avoid or transfer a risk, the risk is accepted. Because it is not practical or even possible to protect every aspect of the business, insurance is an important part of the Business Continuation Plan. In addition to insuring your executives, carefully review your Business insurance policy with an insurance professional and answer these vital questions ...

...e, relations with customers and suppliers — is mandatory.” Tom Peters This m...systems with staff, customers, and suppliers in a logical way that leverages ...

... of cooperative advertising from suppliers. By using a vendor's logo in your a... the cost of your advertising. Many suppliers offer co-op programs when you me...

...ur relationships with customers, suppliers, and employees. Size matter...ten carefully to your customers and suppliers so you can be prepared for the c...