Tag Archives: statistics

Posted on

80% of Americans Concerned about Identity Theft

Bankrate, Inc. released the findings of a national poll that found that eight out of 10 Americans are concerned about their identity being stolen. Furthermore, more than one-third (34%) of Americans know someone who has been a victim of identity theft.

According to the Federal Trade Commission, there were approximately 800,000 consumer complaints filed in 2007. Of those complaints, 32% involved identity theft. The total dollar amount in reported fraud losses was more than $1.2 billion.

Respondents who reported being concerned about identity theft were more likely to shred documents (82%) versus those who are not concerned (52%). Notably, people who are uneasy about identity theft were much more likely to keep tabs on their credit reports. Fifty-three percent of concerned folks check their credit, versus 30% of the unconcerned. Women (83%) were significantly more likely to destroy sensitive information than men (69%).

The national random-digit-dialed phone study of 1,006 adults 18 or older was conducted for Bankrate by GfK Roper Public Affairs & Media. The surveys were conducted from April 4 through April 6, 2008. The sample was weighted by demographic factors including age, gender, race, education, and census region to ensure reliable and accurate representation of adults in U.S. households. The margin of error for the survey is +/- 3 percentage points.

Posted on

Attracting New Talent

It is becoming increasingly important for everyone in the insurance industry to take a hard look at our ability to attract new talent. Of the approximately 78 million Baby Boomers, about 8,000 turn 60 every day. The industry has a long way to go in order to attract and retain enough people to replace retiring Boomers.

An edited excerpt from a recent e-mail I received highlights at least part of the problem:

Dear Sir,

I found your article in the April edition of Rough Notes (Agency Marketing Technology column) of interest. I agree that the insurance industry has not embraced technology like it should… I joined the insurance industry in September 2006 and departed this past January. One reason I left was due to the lack of technology.

Most [insurance company] Web sites did not give good quotes. Or, two weeks after the sale, the company would terminate the sale. Needless to say, my clients were frustrated with me and the fact that their insurance rates kept changing. I found myself phoning underwriters on a regular basis with my clients sitting in my office reviewing quotes. Underwriters would then change and (for the most part) increase the rate, or tell me they wanted to pass on the sale. One company even had to approve all sales afterwards, again changing rates or canceling.

The agency owner didn’t want to invest in technology and didn’t see the need for basic items—such as a laser printer. Instead, my clients sat in my office while a multi-function copier/scanner/printer slowly printed documents. One client commented that his home printer worked faster than mine.

It was hard to find clients in our low-wage market who could afford insurance and deal with insurance company obstacles… I worked for $7 an hour while the agency owner spent the profits on herself.

You likely do a much better job of trying to provide the technology tools your staff needs to effectively “make the sale.” But don’t get too smug. The level and type of technology that a recent college graduate uses (dare I say expects?) is far above what exists in most agencies I have visited.

How many people who enter this industry end up leaving due to frustration with the antiquated ways we get our work done? The frustration that results from the cumbersome and time-consuming process of trying to obtain a bindable quote from an insurance company is only one example. How many more don’t we hear about?

Many who have been around for a while see that progress is being made— but are things changing for the better fast enough for the kids we need to hire? Or are they just going to give up and leave? Worse, maybe they’ll never come to work with us in the first place.

If you want to attract and retain the talent you need to be successful in the future, you have to be willing to invest in appropriate technology. There is no time like the present to begin exploring and experimenting.

Posted on

Too Much Information

The amount of data people create now exceeds the amount of space available for storage. People sent e-mails, took digital pictures, processed credit cards, and generally did things that collectively created 281 exabytes of data by the end of 2007, according to the research company IDC. (“Exabyte” sounds made up, but it’s a real term meaning 1,000,000,000,000 megabytes.) IDC also added up all the computer drives, backup tapes, CDs, DVDs, memory sticks, and other devices that store data and estimated that their total capacity is only 264 exabtyes.

A lot of the data that is created—say, an Internet phone call—gets stored. Other data gets erased or recorded over. It’s the digital equivalent of a conversation going in one ear and out the other. But for the first time in human history, we couldn’t save all this information even if we wanted to, according to IDC.

Businesses are contributing to the data crunch. Wal-Mart, for example, adds a billion rows of data to its data warehouse every hour. But IDC estimates that 70% of the world’s data is created by individuals, either in their role as workers or private citizens. The information is stored on their computers or on other devices they control, not in the company data center.

Posted on

Notebooks Will Surpass Desktop PCs in 2009

Use of notebook computers is on the rise and is poised to surpass desktop PCs in 2009. Notebook shipments in 2008 will hit 136 million units, up 25.8% from 2007, estimated analyst Alex Yang of Lehman Brothers in a report issued in January. By contrast, desktop shipments will decline about 1.3% from 2007 to reach 143 million units.

In general, desktops have been on a path of single-digit growth in unit sales, while notebooks have enjoyed several years of growth above 20%. One unknown in the 2008 notebook market will be the impact of a new class of systems priced below $400, emulating the Eee PC from Taiwan’s Asustek Computer. The systems should start shipping by midyear and will be available from a variety of companies by the end of 2008.

Posted on

Plan Now for Changing Demographics

The biggest expense in any agency is the staff. Of course, a quality staff is also the most valuable asset. Unfortunately, most agents I meet report that they are having a hard time identifying, recruiting, training, and retaining qualified staff.

This problem is not going to go away. In fact, it is going to get worse. Changing demographics are going to have a profound effect on the ability of your agency to remain successful. Here are some trends to consider:

  • The Bureau of Labor Statistics projects a severe labor shortage by 2012—just four short years from now.
  • There are currently about 78 million Boomers who are beginning to retire in increasing numbers.
  • There are only about 48 million GenXers in the workforce to replace the retiring Boomers.
  • There are about 80 million Millennials (Gen Y) who will be entering the workforce in the years ahead, but most agency owners don’t understand how to attract or manage them.

Other businesses are facing the same problem and are aggressively implementing recruiting and training programs to bridge this growing gap.

Eye opener
Try this. Calculate the average age of your existing internal staff. Do the same for your producers. If your agency is like many that I see, the resulting number will be over 50 (maybe well over 50). What are you going to do when your existing staff begins to retire? How are you going to create an agency culture where a 20- or 30-year-old will want to spend his or her time?

There are some things you can do as you plan to fill this gap. These include:

  • Keep up to date: Are you providing the technology tools that younger employees expect? Keeping current can also create problems that need to be managed. Your existing staff has been doing their work the same way for a long time. Change always creates stress. Plan for the change so that you can at least minimize the stress.
  • Technology can be an advantage: Continually experiment with new technology tools to see which are worth using and which are not.
  • Outsourcing: Examine outsourcing as a strategic option. Outsourcing can take many forms, from carrier service centers to hiring an “employee” overseas.
  • Don’t pay lip service to training: Few agencies use the full potential of the technology they already have. Ongoing training always seems to take a back seat to other agency priorities. This is a mistake.
  • Try new things: Experiment with new recruiting tools. I met an agency last week that successfully used “help wanted” ads on CraigsList.com to find new sales talent. You need to go where the talent goes to find new employees. Don’t know what CraigsList is? Go find out.
  • Recruit second career retirees: Unlike their parents, when Boomers retire they often start second careers to remain active and engaged. These are mature people with knowledge and experience. While they may not want to work full time, they can be a valuable source of talent.

These demographic trends need to be part of your agency strategic planning process. Being open to new ideas and creative will help you weather these changes.