Of course, if you're aware of the threats the disruption dominoes pose, you still have time to move that part of your business out of their way.

There has been a disruption to the very rhythm of doing business in this industry. It used to be, prior to PPACA, that there was a consistent rhythm to doing business. Sure, there were gentle ebbs and flows, but the activities of selling new business and renewing existing business was somewhat reasonably distributed throughout the year.

Of course, now we see agencies completely focused on renewing business in the fourth quarter. Unfortunately, they also spend too much of the third quarter in preparation and too much of the first quarter in recovery. The result is that the selling season is now dangerously short, and it is much more difficult to restart the selling momentum than it was to maintain it in a pre-PPACA world.

There has been a disruption to revenue streams. Way too many agencies depend on the carriers' commissions and bonuses as their sole source of revenue. With MLR, the revenue stream is slowing to a trickle.

There has been a disruption to the distribution of product. Between exchanges and carriers being more selective about who they allow to sell on their behalf, many have been cut off from the sole revenue generating deliverable they have to offer clients.

Now face the obvious: When your revenue stream has been disrupted and your product has been disrupted, disruption to your entire business model becomes inevitable. In order to avoid the wrath of the dominoes, most agencies need to completely reinvent the business model under which they will operate moving forward.

Now, back to a review of that technology disruption. The disruption brought by Zenefits wouldn't even be possible if it weren't for PPACA. And versions of the technology solution they are offering have been around for decades with little to no employer demand. It is only with the complexities of compliance/reporting brought by PPACA that demand has surfaced.

Instant Insights /

It’s not the technology, stupid!

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