Protect Profitability with Insurance Market Sales
Serving the insurance market is a smart way for distributors to cover their assets.
Got insurance? If not, it's a beneficial market for distributors to add to their prospecting lists.
Like health-care, it's an industry driven by regulations and drowning in paperwork, conditions that signal strong potential for distributor opportunities. "Even with the integration of technology that allows for paperless transmissions, there will always be a need for a hard copy, which ensures continued growth," said Jim Magdaleno, marketing director for Oxnard, California-based TFP Data Systems.
Other similarities include the tendency for larger organizations—such as one Allstate facility in Northbrook, Ill.—to do a good deal of their own in-house printing, and the propensity for regional and even national account activity. Not surprisingly, the larger insurance companies often select preferred vendors through bid situations, setting the stage for some stiff competition between independent distributors and the major directs.
However, the independent distribution channel is still managing to get a piece of the pie. For TFP Data Systems—as well as Megaform Computer Products, Vandalia, Ohio—it is, in fact, the health-care industry that drives production of some insurance form products.
Magdaleno explained that his company manufactures non-state-regulated universal health insurance claim forms, two big-volume products. "Non-institutional entities, such as medical groups, labs, and physician practices, are required to submit the CMS-1500 claim form, while medical institutions, such as hospitals, are required to submit the UB-92 to have claims processed. We also provide the American Dental Association (ADA) with dental claim forms," he said.
"These claims forms are an easy order for distributors," Magdaleno continued. "The key questions they should ask their customers are whether a laser cut-sheet or continuous format is needed, how many parts are required, whether or not a bar code is to be included, whether or not envelopes are needed, the ship-to location and when the products are needed."