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Consumer demands and competitive pricing have lead to alternative distribution systems. Profit margin is now a serious consideration. Agent use of a single company is declining. Companies are surveying agent habits. Company response to the trend varies. Some companies now view their distribution system as a separate entity. Distribution networks can be valuable assets.

There is a variety of opinions over the definition of financial planning. Financial planning can be seen as a product, with a per hour price; a product that changes with current trends. Financial planning can also be seen as a profession with highly trained personnel. The definition can vary dependent on the point of view of either the conglomerate financial service, the broker, or the insurance industry.

There is growing interest in captives as reinsurance vehicles for a company's life and benefit programs. Some life insurers are becoming interested in captive proposals by some Fortune 500 companies. Life carriers are resisting the potential loss of profit to a captive but, as has happened in the property and casualty industry, they will not be able to refuse.

An interview with John Fibiger, president of New England Life, covers a number of important issues important to the insurance industry today. Topics include advice for annuity buyers, avoiding problems similar to those of Baldwin-United and a perspective on universal life insurance. Legislation aimed at discriminatory rating practices and consumerism are also discussed by Fibiger. Alternatives facing the consumer resulting from changes in the financial services industry along with the idea of replacement policies are also examined. Fibiger stresses that consumers need to find an agent they have confidence in based on the many recent changes in the industry.

Stereotypes of men and women in insurance sales are examined. Due to these stereotypes women have been kept out of the insurance industry. Women should be integrated into the insurance salesforce as they have characteristics that would make them good salespeople.

Richard Stewart and Barbara Stewart of Stewart Economics offer their opinion on the changes and cycles characteristic of the insurance industry through a question and answer format. The growth of investment income will increase in importance as the nature of the industry becomes more and more financial. Responsible investment strategies improve cash flow which in turn can allow underwriting practices to be tightened, improving competition. Effective management is important in analyzing captive companies. Insolvencies are becoming more characteristic of bad management rather than poor investment strategy. Regulators need to be prepared for restructuring within the industry due to changes in the financial services area and company mergers and consolidations.

The insurance industry faces a year of investigation, legistation and structural changes. Deregulation of financial services and banks entering the insurance business will put tests to the insurance industry. Consumer awareness is becoming more apparent in the area of health care and medical costs. High loss rations currently characterizing the insurance market should cause those wanting to enter the insurance business to think twice. The final choice in the sophisticated financial services battle is ultimately up to the consumer.

The insurance industry in the Northwest United States faces the same challenge and trends as evident in other areas of the country but slow economic recovery in this area has made recovery of the industry much slower. Personal and commercial lines are steady with a rate increase expected in automobile insurance. Marine insurance may need more time to recover depending on the oil industry and the weather. Most of the states are dealing with problems in workmen's compensation. Insurer consolidation is also becoming a trend in the areas as it is nationally.

The California Insurance Commissioner, Bruce Bunner, is concerned over the industry's reaction to problems and changes. Bunner feels that unless problems of the type surrounding Baldwin United and state regulations are rectified the industry could face government regulatory action. Competent state regulation is needed to protect the industry. More definite regulations for worker's compensation are needed. Gimmicks used in the industry are eroding good market practices. A pool system is suggested for earthquake coverage but specific details need to be worked out.

The financial services industry is going through major restructuring. The role of insurance will stay strong. The industry will continue to respond to changing needs of the public.

The Consumer Credit Insurance Association evaluates the effects of the industry's evolution. Many factors need consideration in planning. The growth of sophisticated technology is important. Unemployment insurance is new but important because of economic situations. Deregulation is a concern.

Foreign Markets Eluding U.S. NEW YORK CITY - U.S. insurers are in danger of letting a world of opportunity pass them by through their reluctance to take an international view [...]

`Critical Time' Facing Industry, Haayen Says NORTHBROOK, Ill.--As he approached his final days as chairman and chief executive officer of Allstate Insurance Company, Richard J. Haayen said he saw the [...]