Fraternity-Testvériség, 1997 (75. évfolyam, 1-4. szám)
1997-01-01 / 1. szám
1 1 FRATERNITY Page 3 PRESIDENT’S CORNER MARCH ON TO THE NEW MILLENNIUM! álamclfvaiúeol fodciAf on the tArpe&Aodd o^f/ie 2 4atcemlmvUj a nafocmcmdfit//o^fwomMe. G>& George Dózsa We are part of this march, for we are marching not only on to the millennium but also on to the second century of our existence as a fraternal insurance society. The global economy is changing the way we live and conduct business. Families and small businesses now have access to information that once was the sole province of major corporations. The distance between information and people is collapsing, providing greater opportunities that in turn demand more responsibilities. In the coming year, we must focus our attention on what is necessary to enable the Federation to make those changes. For the rest of this century, the insurance industry continues to face the challenges of survival in an environment comprising many issues. The major concerns that the Federation faces are how to deal with strategic issues and their implementation. The important strategic issues include: >- 1. Dealing with increased competition from commercial insurance companies, banks and other financial institutions. > 2. Adding to or restructuring our field force. >• 3. Understanding and focusing on the needs of consumers in a rapidly changing market. >• 4. Educating consumers on the advantages of life insurance. The restructuring of our field force is an unending task. I believe this is true with all commercial and fraternal insurance companies. In the coming years, we must spend more time and increase our resources to develop a well-functioning sales force. This development has to be realized through recruiting target, quality training and consistent supervision and education. A new major concern in the insurance industry in 1995 was its market conduct, which is still strongly felt within the industry. Lawsuits have continued to subject the insurance industry to scrutiny by consumers and the government. Market conduct and media coverage led to erosion in public confidence and image of the life insurance industry. To educate consumers, in fact members of the Federation, on the advantages of insurance, our public media, the Fraternity has to contain more articles in the future which deal with this subject matter. To achieve this goal, the future issues of the magazine will be reorganized to reflect this point. Today large insurance companies focus on controlling expenses and improving profitability with the aim of becoming either a more attractive target for a possible takeover, or acquiring another company. With small insurance companies like ours, profitability and growth may simply mean a matter of survival. For the past one hundred years, the Federation has been facing the problem associated with its size. Nevertheless, we had the inherent ability to continue as a viable fraternal insurance society. We were able to overcome these difficulties in the past by our natural size-related abilities to be flexible, creative and responsive to our members and the marketplace-for example, adopting a modem monetary system in 1910 (Pittsburgh, PA Convention). The membership dues and fees were replaced with the premium-paying system, based on the age of a new member. In 1927, the Convention in Ligonier adopted the Modem Actuarial Mortality Table-T-----T
