Interviewing insurance executives at Zenefits in 2015 the problems of Zenefits were obvious. Just like the problems still are now, January 2017.
In midsummer 2015 I knew the meteoric rise of Zenefits was but a flash in the pan. Running an agency of their size relying on so few insurance staff is two mistakes. First, licensing that has exposed no respect for State protections for citizens and second, and worse than the first, is squandering the opportunity to disrupt an industry stuck on its own existence.
There is so much opportunity to bring fundamental change to more than brokers it would be a tragedy if Zenefits new leader doesn’t get this right.
It sounds like Conrad’s (former CEO) resignation has made room for good culture changes but if Sacks hangs on to the simple minded insurance thinking short the stock.
“The company culture of pressuring and bullying employees to cut corners and do the wrong thing is over,” says Sacks.
Real value for change is much larger than the broker cash grab. That actually doesn’t change or disrupt the industry.
Consider just two items:
- Technology forces benefitting 401k fiduciary protections
- Changing the Healthcare cost escalations for smaller businesses