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The Addiction That is Crippling Our Industry

July 11, 2012

addictionOver the past five years, I have treated over 600 patients at the Beyond Insurance® Treatment Centers.  Our patients are typically bright, well-educated, dedicated, attractive, community-minded producers, sales managers and agency principals who have become addicted to “The Insurance Bid”.

Our patients enter a two day session frustrated, angered and demoralized.  Their confidence and self-image have been rattled.

The addiction to The Insurance Bid has them caught in the “commodity trap” – the 90-day insurance bidding process.


They are fighting an uphill battle against commoditization.  Commoditization occurs when the consumer perceives little or no distinguishable difference between products, services and resources.  When this happens, price becomes the primary differentiator.  Picture commoditization as a disease that eats away at one’s knowledge, wisdom and professionalism.  It so cruel and debilitating that it strips away the value proposition of even the most seasoned producer – his or her professional purpose for existence – to a number.

Prior to attending a Beyond Insurance® program, each patient is asked to complete a confidential “10 Question Beyond Insurance® Survey”.  This Survey facilitates AIC’s ability to understand the level of addiction so a treatment plan may be developed.  As you can imagine, we see serious cases of “performance erosion” as measured by reduced new business hit ratios, sub standard retention, random cross selling strategies, no referrals and key accounts under renewal competition.  The following represent three of the ten statements that are asked on the Beyond Insurance® Survey:

Statement #1:  My prospect research and qualification system screens out commodity shoppers?

Statement #2:  My sales process protects me from getting caught in the “commodity trap” – the 90-day insurance blitz?

Statement #3: I am enthusiastic and energized by my business model, systems and growth strategies?

Over 80% of the patients at the Beyond Insurance® Treatment Centers, respond “no” to the statements listed above.  The addiction to The Insurance Bid is impacting their personal and business careers.  Addiction is defined as a state intoxication produced by repeated consumption of a drug.  Its characteristics include:  (1) an overpowering compulsion to continue taking the drug and to obtain it by any means; (2) a tendency to increase the dose; (3) a psychological and generally physical dependence on the effects of the drug; and (4) detrimental effects on the individual and on society”.

In my next post I will explain the impact this addiction has on producers, sales managers and agency principals alike. 

If you know someone who needs treatment for the insurance bid, please check out our next Beyond Insurance program Changing The Game, taking place in Philadelphia July 24th and 25th.

For more ideas on how to break the commodity trap connect with Beyond Insurance on:

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Scott AddisThe author, Scott Addis is the President and CEO of The Addis Group and Addis Intellectual Capital, LLC (AIC). AIC is a coaching and consulting company whose purpose is to transform the process that insurance agents, brokers and carriers use when working with clients. Scott is recognized as an industry leader having been awarded the Inc. Magazine’s “Entrepreneur of the Year” Award as well as “25 Most Innovative Agents in America”. Scott can be reached at saddis@beyondinsurance.com or 610-945-1019.

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