Next survivor show? Industry associations are competing against each other for membership and prestige and must refine their focuses to stay afloat. (Life/Health: Selling Insight).

Industry associations are facing possible extinction if they don't learn to deal better with their dwindling membership and anemic budgets.

For instance, look at the National Association of Insurance and Financial Advisors. The association's member ship has fallen to 73,000, down 50% from the 145,000 members it had 10 years ago, when it was known as the National Association of Life Underwriters.

Most other industry associations also are struggling for membership, as well as survival. Companies and individual members are feeling the pinch of a difficult economy and are not renewing memberships or participating in various conferences and meetings that support association budgets.

The business of life insurance and related financial services has changed, while most associations and their leaders have not. It is time for each association to step back, assess its strengths and revisit its purpose. Associations need to do more with less and focus on what they do best for a chosen segment.

In order for industry associations to remain viable in the future, they must focus on their core competencies to fulfill a specific need within one or two of the following areas:

* Advocacy: The need for a voice speaking for the life insurance industry and its various constituencies to be heard by legislative bodies and by the public.

* Recognition: The need to reward those outstanding performers that sell with distinction and serve customers, or others, with grace and effectiveness.

* Connectivity: The need to provide an opportunity for industry players to develop relationships and experience fellowship and growth through sharing with their peers.

* Research: The need to determine not only the best practices within the industry, but also to find cutting-edge solutions to challenging issues.

* Leadership and professional development: The need for the development of personal and corporate competencies that lead each person or organization to better results.

Many associations are having talks about survival or mergers because of redundancy. When a controversial bill comes before Congress, representatives from an alphabet soup of associations: NAIFA, AALU (the Association for Advanced Life Underwriting), ACLI (American Council of Life Insurers) and perhaps HIAA (Health Insurance Association of America) and several others come to represent "the industry." Someone interested in the financial side of the industry can attend conferences sponsored by LIMRA International (formerly known as the Life Insurance Marketing and Research Association) or by LOMA (formerly the Life Office Management Association).The calendar of possible meetings and events each year is as mind-boggling as the cumulative dues.

GAMA International (which was originally the General Agents and Managers Conference of the National Association of Life Underwriters) is one organization that stands out as an example of what it is going to take to survive and thrive. It is in the best financial shape in its history. Membership has actually grown--1,045 new members in 2002--both in North America and abroad, and there is more demand for its products and services now than ever before.

One solution may be for various associations to partner with each other by cosponsoring industry meetings and seminars. Take, for example, this spring's "Life Insurance Conference," cosponsored by LOMA, LIMRA and the Society of Actuaries. Similar efforts should be encourage d, as should discussions on merging where there is redundancy.

What did GAMA do right? First, it focused on a specific audience: career field managers. As the industry changed--eroding its traditional career base--it expanded to include managers from additional distribution channels. In the mid 1990s, GAMA made a bold strategic move to get out of the "connectivity" business by shutting down its expensive federation of local chapters. Instead, it identified a need to focus on the training and development of field managers, since companies were reducing or eliminating training departments in order to cut distribution costs. By bringing together the best field managers in the business, GAMA has been able to become the resource for leveraging the skills and successes achieved by its members. As such, it is positioned to be the most significant resource for its target niche in the industry.

In summary, the key components to survival for industry associations will be these:

* Doing a limited number of things well;

* Focusing on a need that is not being met by others;

* Revisiting association strategies and mission statements; and

* Reinventing themselves, if necessary, to fulfill a sustainable need.

Those that continue to provide redundant services will find themselves in serious jeopardy.

William N. Goff Jr. is a consultant with Tillinghast-Towers Perrin. He can be reached at [e-mail].