Whew! We made it to the end of 2009. And although things could be more secure, some basic indicators point to a small-scale stabilization. The least we can say is that things are not as scary as they were last year at this time: The mass layoffs have slowed, the Dow topped 10,000 a couple of times and manufacturing and retail posted surprising gains in the third quarter. Whether or not your holiday budget includes parties, these reasons alone rate raising a glass.
Not that we're out of the woods yet. The construction and housing markets are still sluggish, businesses are uncertain about the outcome of healthcare and financial services reform, and more to the point, there's still plenty of insurance capacity and a soft market, with most lines of business still extremely competitive.
But in the years I've been writing about insurance agents and brokers, over and over again I've witnessed their resiliency, toughness and creativity in challenging times. Insurance people are truly a breed that finds opportunity in the worst of adversity, and once again, they're proving themselves worthy of that reputation.
In this year's Review & Outlook issue, we spoke with more than 30 insurance experts–from independent agencies to the CEOs of the world's biggest insurance companies, and everyone in between. In all these conversations, we have heard a similar message: The recession and soft market are forcing them to get back to basics and focus more closely than ever on the needs of the customer.
We heard similar stories from just about everyone we spoke with, which essentially boiled down to turning a deficit into an asset. Staff cutbacks were hard, but forced principals to take a closer look at staffing and ensure that processes are what they should be. The need for new business and retentions is highlighting customer communication, and Internet-driven social media played a big and growing role for most marketing plans this year. And although most smart businesses realize the importance of diversification, more are choosing to dedicate time, money and energy to their niche markets and customers–the specializations and expertise that makes them stand out in a crowd and serves as the foundation of their businesses.
It's not easy operating in the new normal, when too often flat profits are taken as a sign of success. But rest assured that when the economy and the insurance market turn, as they both inevitably will, these tough, smart people will be perfectly positioned to make the most of things, whether recovery comes in 2010 or beyond.
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