The Million-Dollar Mission

“The introduction of three best practice divisions, each having the same four committees, has provided MDRT with new ideas and content, the breadth of which we’ve never before achieved,” said Good.

The new divisions, he added, are aiding in their quest to boost its exposure internationally, most notably in Asia, where the organization is enjoying it’s most significant growth.

Borislow said that MDRT’s Experience meeting in Singapore last year–a two-day version of the annual meeting for aspiring members–drew 4,300 financial service professionals from 22 countries. Next year, she noted, MDRT will be taking the Experience gathering to Bangkok, and then to India in 2013.

“MDRT Experience is now a signature event along with the annual meeting,” she said. “The international exposure has given us much more global appeal.”

Good agreed, adding that the overseas gatherings have brought in many new volunteers: “Our international meetings–including committee gatherings hosted for the first time internationally by three of MDRT’s 11 divisions–have dramatically boosted our volunteer pool. These meetings really have energized a lot of people.”

The growing prominence of Asian members within MDRT is evident in the numbers. While U.S. members still account for about a third of the total MDRT membership, those from Asia–India, Korea, Japan, and Hong Kong–are among the top five. This past year, India (16%) surpassed Korea for the number two slot. By company, seven of the top 10 (out of 462 companies represented in MDRT) hail from Asia.

To be sure, MDRT is extending its reach to other parts of the world. MDRT members, Good noted, held this past year a first European meeting in Athens, Greece. Thirty- one countries and 1,300 attendees, both members and non-members, were represented

To aid in the global outreach effort, the organization is also developing an MDRT Ambassadors program that will support the work of the Executive Committee by building relationships with companies and associations and member prospects worldwide.

“MDRT past presidents, the Executive Committee, long-time volunteers and young leaders will work together to make this initiative a success,” said Good “It’s our way to make sure that more of our leadership is involved in shaping MDRT’s future.”

To be sure, MDRT continues to face a challenge in recruiting young advisors who, as a group, are less inclined than earlier generations were to join professional associations.

“The X and Y generations are not becoming members in the numbers that we would hope for,” said Good. “And those that do often don’t volunteer to help with association-building activities. That’s just a fact.”

Borislow agreed, but suggested the new Growth Summit is what many young advisors are looking for.

“Young financial professionals want content delivered to them on a limited scale because their time is valuable,” she said. “So the Growth Summit is back-to-back crammed with incredible speakers, but with few breaks.”

Enhanced member recruitment efforts, said MDRT executives, have helped to strengthen the organization’s finances. For its 2010 fiscal year, member-related revenue (dues, filing fees, and registration for member meetings) accounted for more than 60% of $24.9 million in revenue. Minus expenses of $21.2 million, the receipts (including revenues from education services, investments and other income) yielded a profit of $3.7 million–up from $2.6 million the previous year.

While enjoying an infusion of new members, MDRT is also raising the bar on admittance into the association. The production requirements for next year are $89,000 in commissions or $178,000 in premiums paid, up from $87,900 and $175,800 for 2011. A third income qualification method, instituted last year to capture the burgeoning number of fee-only advisors, also is rising to $152,000 in annual gross income from sales of insurance and financial products, up from 150,000 last year.

The impact of the new production requirements will vary by country, depending on the degree to which individual nations have achieved production “parity” using the World Bank’s Purchasing Power Parity Index: a data source adopted by MDRT in 2008 as a tool for equalizing currencies, thereby leveling the playing field for producers seeking to become members.

Countries between 70% and 89% parity will increase their requirements to achieve 10% progress towards parity between 2012 and 2013. Countries with parity between 90 and 99 percent parity will have smaller increases in their requirements.

The new benchmarks, said MDRT executives, aim in part to maintain the organization’s elite status. Founded in 1927, MDRT counts among its members about 1% of the world’s top life insurance producers, a growing percentage of whom are financial service professionals that engage fee-based planning and investment-advising. In recognition of that fact, said Good, MDRT debuted a ballot to approve a revised draft of its bylaws, to be voted on during the annual meeting. Among other provisions, the revised bylaws reference current and potential members as insurance and financial service professionals or advisors.

“The wording [of the revised bylaws] is carefully stated to account for the differences in how our profession is defined in various parts of the world,” said Good.