Beginning March 29: To help insurance agents and financial advisors like you guide clients in making critical wealth, health and life decisions we will be moving our coverage from to

Our comprehensive coverage will help you expand your knowledge base and adapt a new client-centric approach that incorporates both insurance and investment solutions.

ThinkAdvisor’s new Life/Health channel is your roadmap to thriving in a disrupted environment.


Filed Under:Annuities, Variable

Service quality, profitability key in alliance review

Photo credit: adamr
Photo credit: adamr

Nine in 10 insurance executives grade service equality and annual profitability as most vital when reviewing strategic alliances.

Inter-Company Marketing Group, Ashburn, Va., published this finding in a survey of 104 insurance professionals conducted in the fall of 2012. ICMG is a non-profit association that fosters insurance industry strategic alliances, the organization counting among its members marketing and business development decision-makers with insurance carriers, reinsurers, distributors, third-party administrators and service providers.

More than nine in ten (93 percent) of the insurance executives polled rate service quality by the strategic partner as “very important” or “important” among the critical success factors to be reviewed when deciding whether to renew a strategic alliance. A similarly large majority (88 percent) rank profitability as very important or important.

Most senior managers and/or managers of a division or line of business (93 percent) are involved in reviews of existing strategic alliances, the report states. Fewer non-managers are involved, among them professionals in the firm working on the alliance (35 percent), company sales force and/or distribution partners (32 percent), third-party reviewers of the alliance (12 percent) and boards of directors (10 percent).

A majority of the survey respondents indicated that a formal review presented to management (59 percent) and a review by professionals involved with the alliance (50 percent) are part of the alliance review process. Fewer of the respondents cite an informal review process (33 percent), a review by outside consultants and/or auditors (15 percent), a formal review presented to the board of directors (12 percent) or requests for comment from insurance ratings firms (3 percent).

More than four in ten respondents (44 percent) say they do not have established formal schedules for reviewing strategic alliances. Others insurance executives indicate they review alliances annually (33 percent), quarterly (21 percent), semiannually (13 percent) or monthly (12 percent).

When reviewing strategic alliances, the respondents cited as the most important factor to consider profit and revenue (23 percent), mutual benefit (18 percent), importance to the company’s strategy/alignment with corporate goals (18 percent), working relationships and people (17 percent), the partner’s reputation and capabilities (10 percent), value to the customer and cultural fit (four percent), distribution and product need (two percent) and service (one percent).

Featured Video

Most Recent Videos

Behind the scenes with Vicki Gunvalson [VIDEO]


In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI


Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's


An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Protesters Disrupt WellPoint Annual Meeting


Hecklers call for more disclosures of information about political contributions.

Related resources

More Resources


Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.