Comment.Still Stirring Just wanted to send you a note to compliment you on the recent "Stirring the Melting Pot melting pot America as the home of many races and cultures. [Am. Pop. Culture: Misc.] See : America " article in your February issue. Lori Chordas is right on the money, and her reference to the Datamonitor study says it all--"Companies that fail to address ethnic markets will limit their customer base." With a society of such diversity and so many insurance options, it's the insured that will determine the insurance winners and losers in today's market. Peter Drucker Peter Ferdinand Drucker (November 19, 1909–November 11, 2005) was a writer, management consultant and university professor. His writing focused on management-related literature. spoke two years ago at LOMA lo´ma n. 1. (Zool.) A lobe; a membranous fringe or flap. on this very subject and warned that the insurance industry was not adequately watching the changing demographics, predicting that it would become our single biggest challenge. While at the time I found his comments interesting, but not alarming, I have since learned that Mr. Drucker is a former actuary and well-versed in our industry. The warnings I heard two years ago are rapidly becoming today's reality. Your article should make us, as an industry, stand up and take "urgent" notice that we quite simply have to change the way we do business. It's a buyer's market A Buyer's Market is the second novel in Anthony Powell's twelve-novel series, A Dance to the Music of Time. Published in 1952, it continues the story of narrator Nick Jenkins with his introduction into society after boarding school and university. out there, and the rewards will go to those insurers that can respond with customized products to meet the breadth and depth of demographic diversity. Perhaps Best's Review would consider ongoing editorial on this timely and crucial insurance business issue. Ric Young Chief Marketing Officer Adminserver Inc. Malvern, Pa. Conclusion Questioned In regard to the "Anticipating the Benefits" article written by James M. Carson and Mark Forster, which appeared in your January 2002 issue, I would like to dispute their fallacious conclusion. They reported universal life policies outperformed whole life from the periods 1988 to 1998. I won't contest that analysis, but would point out that insurance is purchased for the long term. By utilizing a 10-year period in which the highest interest rates we have experienced were credited into universal life policies creates a skewed skewed curve of a usually unimodal distribution with one tail drawn out more than the other and the median will lie above or below the mean. skewed Epidemiology adjective Referring to an asymmetrical distribution of a population or of data report. By their analysis, a client would have been better off to have simply purchased mutual funds and term insurance or possibly even variable universal life. Returns in those areas for that same 10-year period average well over 20%. In order for their article to have any merit, they would need to take a longer time period, perhaps 20 years, and rerun re·run n. The act or an instance of rebroadcasting a recorded movie or a recorded television performance. tr.v. re·ran , re·run, re·run·ning, re·runs To present a rerun of. the numbers. In addition, had the last three years been included, where universal life yields have dropped to the mid-5% range, figures again would look different. All in all, the article was biased, did not represent the facts and, more importantly, missed the long-term purpose of having strong permanent life insurance. There is a time and a place for whole life, universal life and variable universal life. Their analysis, however, is biased. Thomas G. Dater New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Life Boise, Idaho “Boise” redirects here. For other uses, see Boise (disambiguation). Boise is the capital and most populous city of the U.S. state of Idaho. It is the county seat of Ada County and the principal city of the Boise metropolitan area. In the Spotlight (*) "I think that a number of the [new reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. ] companies that were formed do not have sustainable business models, and they will disappear within the next three years." Dirk Lohmann Group Chief Executive Officer Converium Holding AG (*.) excerpted from Best Week |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion