Press Release

Insurance Advisory Board Releases New Research into How Insurers Can Recapture the Mass Market Profitably

WASHINGTON--(BUSINESS WIRE)--Aug. 19, 2004--The Washington, D.C.-based Insurance Advisory Board announces the publication of its most recent research, Insurance for the Masses: Achieving Profitable Growth in Mass Markets. The Insurance Advisory Board is a membership program of the Corporate Executive Board (Nasdaq: EXBD), a leading provider of best-practices research and quantitative analysis, and serves insurance and bancassurance executives throughout the world. With participation of over 80 industry executives from leading global insurers, the study identifies substantial opportunities in the mass market, catalogs the industry's shortcomings in capturing those opportunities and presents proven strategies to tap the market's potential profitably.

"The mass market's risk protection needs are greater than ever," says Mike Kostoff, Executive Director of the Corporate Executive Board's financial services practice. He continues: "A number of coverage gaps are widening as risk is shifting to individuals. In death protection alone, the revenue potential in the U.S. is around $150 billion and in the U.K. more than GBP 20 billion. Further, it will only increase as many nations struggle with the high cost of aging populations." The study establishes that most insurers have been unable to capture this opportunity profitably, demonstrating that life insurers in particular have been forced to exit the market as a result of the high cost of their business system.

To reconnect with mass-market customers profitably, insurers must recognize that their product and distribution strategies cannot simply be different in degree from traditional approaches but different in kind. Mr. Kostoff states: "Traditional products sold via traditional agent channels have become too expensive for the mass market."

An extensive review of global leaders in serving the mass market reveals that the key to mass-market profitability lies not in the most obvious obstacle - expensive distribution - but rather, in the need to reformulate products around mass-market customers' purchase requirements: context, affordability, simplicity and speed.

Insurance for the Masses is the latest in the Board's series of research studies into the most fundamental issue facing the insurance industry today - the struggle to combine revenue growth with margin improvement. In 2003, the Board published To Leave a Legacy, outlining world-class strategies to achieve sustained improvements in cost efficiency. In January 2004, the Board's From Chaos to Clarity explored how many providers' shortcomings in information management hamper their ability to achieve profitable growth. The best-practice case studies are available exclusively to IAB members. Additional information on the Council's research is available at

About the Corporate Executive Board and Insurance Advisory Board

The Corporate Executive Board is the premier executive network for leaders of the world's largest public and private organizations to solve their most urgent shared concerns. The Board provides its integrated set of services currently to more than 2,100 of the world's largest and most prestigious corporations, including over 80 percent of the Fortune 500. These services are provided primarily on an annual subscription basis and include best-practices research studies, executive education seminars, customized research briefs, and Web-based access to a library of over 275,000 corporate best practices.

The Insurance Advisory Board is one of the Corporate Executive Board's membership programs and provides ongoing research dedicated to the strategic priorities of executives within life, property & casualty and bancassurance providers. More information on the Insurance Advisory Board is available at

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    CONTACT: The Corporate Executive Board Company
             Jenny Martinez, 202-777-5914

    SOURCE: The Corporate Executive Board Company