Frequent Life Insurance Selling contributor Maria Ferrante-Schepis (formerly Umbach) has been warning readers for years now about the possibility of an upcoming “Napster moment” in the life insurance industry — even as recently as our July issue. (See: Is Infertility Killing Independent Distribution?)
A Napster moment, Ferrante-Schepis says, occurs when someone who has no business being in your business swoops in and reinvents your business — putting you out of business. We’ve seen it happen before. Just look at what Napster and, later, iTunes did with the music industry. And the life insurance industry certainly possesses a lot of the hallmarks of a business ripe for reinvention — commoditization, a flight to the high end of the market, a growing underserved market, an imbalance in the supply chain.