Bethlen Almanac 1998 (Ligonier)

The Hungarian Reformed Federation of America

100th Anniversary of

Facing the Challenges of the New Millenium

“In the past ten years, consumers’ needs have changed tremendously and the insurance industry has not adapted to those needs. Mutual funds have responded most successfully, and banks have adjusted somewhat as well, but there is nothing about the insurance industry that the least bit appeals to the customer. The industry tends to view customer contact as an administrative chore rather than a service opportunity.” The Newsletter of the Society of Actuaries, Vol. 32, No. 5, May 1998.

There is a lot of truth in this statement. A survey of HRFA membership by LIMRA (a research arm of the life insurance industry) confirmed that these shortcomings were also evident in our own customer service and our lack of up-to-date products.

With these findings in hand, the Board of Directors of the HRFA at its Spring Meeting in 1998 took decisive steps to improve the customer service aspect of our society and to introduce competitive new products. The Board adopted resolutions to:

Liberalize our portfolio.

Increase the maximum face value of our policies from $100,000 to

$200,000.

Raise the age limit from 70 to 80.

Raise the maximum principal amount for mortgages to $150,000.

The Board also authorized that the Federation form new strategic alliances in the coming months to share some of the expenses of developing new products,

Success in the new business world will also depend on a combination of technology and information. In the future, the right technology together with the right information will be more valuable to the insurance industry than capital. We can have all the capital, but if we do not have the best available technology and accurate and reliable information on our members and potential customers, we will not be able to compete with other financial institutions such as banks and mutual funds. If we cannot compete, we will not be able to survive in this highly competitive field.

Last year, the Federation has already taken advantage of some of the available new technology by stepping into “the world of Internet” and establishing a web site (www.hrfa.org~). which we trust will not only improve our public image, but will also furnish information to prospective “readers” about the business side of the HRFA. The future is difficult and uncertain, but how do we predict the future? We build it.

George Dózsa, HRFA President

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