: the promotion of the consumer's interests

  • Economic growth is going to have an impact on our surplus and performance.
  • Consumer activism is another.
  • Consumers want insurance companies to be more solvent and be more stable, but I'm not sure they want to pay for it.
  • It is kind of how Ross Perot sees the nation, in the sense that he knows what we need to be, but he's not real convinced that we want to pay for it.
  • We all need to buckle down and contribute to a solution.
  • Consumer activism has driven the rating agencies and
    the way companies do business.


1992 - MANAGING STATUTORY PERFORMANCE, Society of Actuaries - 22p

Criticism of the life insurance product has been around for many
years and has been especially strong during the last decade.
I feel that, if the life insurance industry cannot find a way to
create within the confines of those laws or, alternatively, to change them,
then we must resign ourselves to an ever decreasing share of the savings
dollar as well as mounting consumerist attacks.

MR. JAMES A. MITCHELL: A thought that occurs to me is that
consumerism must be good business for two basic reasons:
1. We must deliver products and services satisfactory to the consumer if we are to stay in business.
2. The organizations which do the best job in this regard are those which will grow and prosper over the longer term.

Thus, instead of looking exclusively at the short-term "costs" of consurnerism to our companies, we should seek out and invest in the many areas where the interests of the policyholder and the company are

As an example, the key to delivering and maintaining our products is the agent. The basic reason that many of our policyholders are "orphans" is that such a high proportion of our agents do not survive more than a couple of years in business.

The attendant costs to our companies are large. If we can find the keys to doing a better job of recruiting, training, and helping to make our agent a success, then he can do the job of servicing his policyholders and we will have greatly increased the return on our investment in field manpower.