The Challenges Facing Insurance Agencies Today
By Scott Addis, CPCU, CRA
Scott Addis, CPCU, CRA, serves as the president and CEO of The Addis Group and Beyond Insurance.
The Addis Group is recognized as one of the premier insurance and risk management consulting firms in the U.S., while Beyond Insurance is in the business of industry transformation. Scott recently launched the Risk Revolution to put an end to commoditization in the insurance industry.
Scott has handled the insurance and risk management needs for many prestigious companies and institutions, including Comcast Corporation, Urban Outfitters, Aqua America, the University of Pennsylvania, and Temple University.
Widely known as an industry thought leader and mesmerizing public speaker, Scott is also author of Summit: Reach Your Peak and Elevate Your Customers’ Experience, a step-by-step training guide for peak potential.
Scott was a finalist for Inc. magazine’s Entrepreneur of the Year award, recognized as one of the 25 Most Innovative Agents in America by The National Alliance for Insurance Education & Research, and recipient of the Franklin Award for outstanding achievement and contribution in Delaware Valley. Scott was recognized by the Philadelphia Business Journal as one of the region’s most influential business professionals through its Book of Leaders.
A graduate of Princeton University, Scott remains active in community affairs. He and his wife reside in Bryn Mawr, PA, and have three sons.
Tell me about your firm (number of employees, location, type of companies you work with, etc.).
Founded in 1990 and based in King of Prussia, PA, The Addis Group has evolved into one of the premier risk management consultants and insurance brokers in the United States.
The Addis Group oversees the risk management, workforce, and insurance needs of more than 1,500 commercial and individual clients throughout the United States and abroad, representing over $190 million in premium or premium equivalents.
The Addis Group continues to gain recognition for the manner in which it delivers solutions and resources to its clientele. Our record indicates that the firm’s bold approach leads to enhanced program design, reduced premiums, energized and involved clients and keeps long lasting relationships. The Addis Group has been listed as a “Philadelphia 100” company – one of the fastest growing firms in the region, the Greater Philadelphia Chamber of Commerce “Business of the Year” and one of the “Best Places to Work” in Pennsylvania. It has about 60 employees.
Tell us about the challenges facing insurance agencies today?
The biggest challenge facing insurance agencies today is commoditization…a paralyzing condition that occurs when the consumers’ focus in on the offering rather than the quantifiable difference an agency brings to its customers. Picture commoditization as a deadly disease that strips away the value proposition of an agency – its purpose for existence – to a number.
What is your firm doing to overcome these challenges?
At The Addis Group, We continually work on three strategies:
1. Value Proposition. We realize that we must be able to articulate a differentiated value proposition that goes beyond functional product or service descriptions to express the results our consumers expect to achieve.
2. Creativity and Innovation. We think outside the box. Creativity is the act of producing new ideas, approaches or actions while innovation is the process of putting ideas into action.
3. Voice of the Customer. The Addis Group’s ability to listen to the customer is of paramount importance. It is our “art of discovery” that allows us to design and develop customized, strategic solutions.
In 2007, I created Beyond Insurance to coach and teach others how to move beyond the 90-day insurance bid and serve clients as a diagnostic, consultative risk advisor. Then in August 2013, we launched the Risk Revolution to remove commoditization as the focus of the customer experience and to improve the overall perception of the insurance industry. The Risk Revolution shows consumers, producers, agencies, and carriers how to pinpoint, evaluate, and mitigate risks — strategies to properly protect a family and business with the goal of reducing claim frequency and severity.
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