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Industry News

BEST PRACTICES
Big “I” Recognizes Best Practices Study’s Top Performers

Six insurance firms from across the country have been recognized as “Top Performing Agencies” and enjoy the distinction of being included in the recently released Best Practices Study, a prestigious report from the Big “I” and Reagan Consulting, an Atlanta-based management consulting firm. 

Six agencies were singled out for their operational excellence, financial results and overall management achievement in their respective revenue-size categories.

“These agencies should serve as models for agencies and brokerages who want to take their business to the next level and experience significant gains in sales, reputation and customer appreciation,” says Madelyn Flannagan, Big “I” vice president of education and research.

The “Top Performers” include:

Bridges Group, Inc., Norton, Kan. - Bridges Group, Inc. is an independently owned insurance agency that has been serving northwest Kansas since 1894. Although it is a full-lines insurance agency, it is an agri-business insurance leader in its marketing area.  The agency has offices in Oberlin and Norton, Kan.

Ed Berrong Insurance Agency, Weatherford, Okla. - Ed Berrong Insurance is a family-owned agency in its 59th year of business. Located along the mid-west I-40 corridor, the agency does business throughout Oklahoma and in surrounding states. The agency is a full-lines insurance agency with a focus in the oil and gas industry and is a surplus lines broker for its clients.

B.H. Gold Insurance Agency, San Diego - Established in 1920, B.H. Gold is California leader in low cost auto and homeowners insurance. The agency also specializes in affordable health, life, business and workers’ compensation insurance. The independently-owned agency has two locations in San Diego and Ventura County.

Swingle Collins & Associates, Dallas – Swingle Collins is the largest property-casualty only insurance agency in the Dallas area. The agency just celebrated its 25th anniversary and is committed to remaining independently owned. The agency targets mid-market customers and strives to offer the best market representation and relationships available in Texas.

Puckett Scheetz & Hogan Insurance Agency, Myrtle Beach, S.C. – With a vision of writing coastal insurance, in 1980 Puckett and Scheetz Insurance Agency of Greenville, S.C. opened a branch in Myrtle Beach, S.C. The office was lead by Mike Hogan, who in 1989 purchased the agency from Puckett and Scheetz. A week later Hurricane Hugo struck the South Carolina coast. Despite this setback, the agency has grown to be the largest independent agency on the Grand Strand. Today, with 48 employees, the agency’s focus is customer service with a primary market of condominium insurance associations.

McGriff Seibels & Williams, Birmingham, Ala. - McGriff, Seibels & Williams has a history of service to its clients reaching back more than 100 years. As a privately-held, employee-owned company, MSW was ranked 13th among the top 100 insurance brokerage firms in the United States. In February 2004, MSW merged with BB&T and is now affiliated with the sixth largest brokerage firm in the country. MSW operates as a wholly-owned subsidiary of BB&T, retaining its name, management team and corporate philosophy.   

“We are extremely proud of these Best Practices agencies,” says Shirley Lukens of Reagan Consulting. “They epitomize the professionalism and standard of quality that the industry strives to achieve. That they took the time and effort to participate in the study speaks volumes of its importance to the agency community.”

Eleven insurance companies and three industry vendors that provided financial support for the research and development of the study --- Applied Systems, Central Insurance Cos., Chubb, EMC Insurance Companies, Encompass Insurance, Hanover Insurance Group, Harleysville, Imperial AI Credit Companies, InsurBanc, Liberty Mutual, Main Street America Group, MetLife Auto & Home, Safeco and Zurich North America --- were also recognized for their sponsorship. 

Every three years, the Big “I” and Reagan Consulting join forces to select “Best Practices” firms throughout the nation for outstanding management and financial achievement in six revenue categories (Under $1,250,000; between $1,250,000 and $2,500,000; between $2,500,000 and $5,000,000; between $5,000,000 and $10,000,000; between $10,000,000 and $25,000,000; and over $25,000,000). More than 800 independent agencies and brokers of varying sizes across the country were nominated to take part in the study. Only 195 agencies, the top 30 to 33 in each of six revenue groups qualified for selection. The agency was nominated by either a Big “I”-affiliated state association or an insurance company and qualified based on its operational excellence.

The Best Practices Study was initiated by the Big “I” in 1993 as the foundation for efforts to improve agency performance. The survey and study of leading independent insurance agencies documents the business practices of these “best” agencies and urges others to adopt similar practices.

For more information about the Best Practices Study, please contact Madelyn Flannagan at 800-221-7917 or Shirley Lukens of Reagan Consulting at 404-233-5545.

VIRTUAL UNIVERSITY
Four Ways to Reduce E&O Exposure for Free

One of the most valuable E&O loss control tools each IIABA agency has is the Big “I” Virtual University. Just a click away 24-7, here are four features of the VU that you can use to significantly reduce your E&O exposure.

• VU Research Library: The VU has more than 4,000 pages of content. In the Agency Management section of the business school area of the library, there is a specific E&O section with practical information agents can use to implement loss control procedures in their agencies.

In addition, according to loss statistics, the No. 1 source of E&O claims against agents involves failure to provide proper insurance coverages. The VU technical insurance library has hundreds of articles on insurance coverages, including articles that address often overlooked coverage gaps that can lead to E&O claims.

The VU also has articles in the business skills area of the library that deal with agency procedural and automation issues, along with articles on ethical conduct and professional sales and customer service skills which can significantly impact an agency’s E&O exposure.

Also, the library includes tools such as sample coverage checklists agents can use as guides to construct their own checklists based on the unique insurance products they sell.

• Online Courses: These courses vary from one to six hours and provide a more structured approach to acquiring technical and procedural knowledge. Since additional insured and certificate issues are a source of E&O claims, there is a one-hour course on additional insureds. Claims can arise from failure to properly recommend coverages or collision damage waiver purchases when renting vehicles, so there is a three-hour course on rental car insurance and risk management. Of course, there are also specific courses on E&O loss control.

• “Ask an Expert” Service and VU Faculty:  IIABA members can access the “Ask an Expert” service and pose E&O, agency management or insurance coverage questions to the VU faculty members who are subject experts located across the country. Sometimes an adjuster may deny a claim that the agent feels is covered. Needless to say, denied claims are the primary source of E&O claims. The “Ask an Expert” service has been instrumental in getting uncounted initially denied claims covered based on the expert analysis provided by the VU faculty.

Not long ago, the VU provided commentary, court case citations and other information that caused an adjuster to reverse a $60,000 claim denial and pay it. While it is not known for sure, this could have otherwise resulted in an E&O claim against the agent. So far, it is estimated that the VU has answered 15,000 to 20,000 questions from members.

• Newsletter: The VU has a bi-weekly email newsletter, The VUpoint, with almost 25,000 subscribers. Each issue features insurance coverage, agency management, sales and service and technology articles that are timely and topical. Often questions from the “Ask an Expert” service find their way into the newsletter so the VU is providing information that is current and important to members. If your CSRs and producers don’t subscribe, they are missing out on a wealth of information. Subscriptions are free at www.iiaba.net/VU. The first issue in February of The VUpoint will be the 200^th issue!

Need more proof of the value of the Virtual University? See what others have to say about each of these VU features by clicking here.


BIG “I” RETIREMENT SERVICES^SM
It's Tax Time--Are You Ready?

For some, it’s one of the most dreaded times of the year --- tax season. People are searching and gathering important documents and making resolutions to be more organized next year. Some take the plunge and prepare taxes themselves, while others hand their financials over to professionals. Whatever your case may be, everyone has the same ultimate goal: Lower the amount of taxes that they must pay.

One of the best ways to lower the amount of taxes you must pay is to reduce your taxable income which is achieved through tax deductions. During this tax preparation season, most people have the mindset that 2007 is what it is and there is nothing that can be done to improve their tax situation. But there are still some viable options for 2007.

Depending on your income, tax-filing status and coverage by other employer sponsored retirement plans, individuals can open and fund an IRA for the 2007 year up until the tax filing deadline which is April 15. The primary benefit of contributing to an IRA is the tax deduction and the tax deferred growth on your earnings. Also, depending on your adjusted gross income and tax filing status, you could be eligible for a nonrefundable tax credit. Your contributions must be deposited by your tax filing due date, which is April 15.

For employers who wish to reduce the amount of taxes they must pay, why not provide employees with a retirement plan at the same time? Big “I” Retirement Services is happy to offer a SEP, otherwise known as a Simplified Employee Pension plan. These plans are solely funded by the employer, allow varying contributions over different plan years and enabling the employer to make a one time contribution up until your tax filing deadline of April 15.

At the end of the day, there are still a few options available to assist you with lowering your taxable income for 2007, but why wait until it’s too late for 2008? Did you know that most retirement plans can be started mid year? Take a few minutes and give us a call. We can provide you with a no cost consultation on the plans we have available that would best suite your agency’s needs. Take the hassle out of tax time next year while at the same time offering your employees an invaluable benefit, a secure retirement future. For more information, contact Christine Munoz at 800-848-4401; christine.munoz@iiaba.net.


InVEST
Sneak Preview of the 2008 InVEST Silent Auction

What will be featured at the 2008 InVEST Silent Auction? Take a sneak peak at the incoming auction items donated so far by clicking here (new items will be gratefully accepted through Feb. 15). Items new to the auction this year include:

• iPhone
• Huntington Beach, Calif. getaway
• Gold South Sea pearl earrings
• Tickets to the 2009 PGA Championship

The InVEST Silent Auction will be open during the during the Big “I” Legislative Conference & Convention’s Trade Show at 6 to 8 p.m., April 3 and 9 a.m. to 1 p.m., April 4.

In addition, InVEST is planning to hold the second annual InVEST Live Auction at the Large Agent & Broker Dinner during the Big “I” Legislative Conference & Convention. InVEST is looking for one to three “extra special” items for this venue. Last year, Allstate/Encompass donated tickets to the recently played Bowl Championship Series (BCS) game in New Orleans, along with an all expenses paid package that created some spirited bidding.

InVEST would like to thank all the supporters, both donors and “bidders”, who make these auctions fun, and a valuable way to help young people further their insurance studies. For more information, or to discuss donating a live auction item, please contact Sandra Skipper, InVEST program manager, at 703-706-5437; sandra.skipper@iiaba.net.


LEGISLATIVE CONFERENCE & CONVENTION
Coming Soon! 2008’s Premier Event for Independent Agents

The 2008 Big “I” Legislative Conference & Convention will be hosted April 2-4 at the Marriott Wardman Park Hotel in Washington, D.C. This program offers members an opportunity to experience advocacy, innovation and exhibits not available anywhere else. In addition to the annual Big “I” Day on Capitol Hill, attendees can learn about the Best Practices of agency financial management or earn hours toward a CRIS designation by attending the contractual risk transfer in construction seminar. This year’s general session will include a state-of-the-industry address by IIABA Chairman Bob Fulwider and an election year debate, moderated by Big “I” President & CEO Bob Rusbuldt, between Paul Begala, CNN political analyst, and Tucker Carlson of MSNBC's Tucker. 

Need more reasons to attend this year’s event? Here are a few more reasons:

*Visit with your key federal legislators--they take notice and listen.
* Use your influence to affect the future of the industry on issues such as insurance regulation, agent licensing, flood insurance, and many other issues.
* Improve your agency's efficiency and profitability with new tools.
* Discover how industry leaders are addressing perpetuation, technology and agency workflows.

Click here to register today and save 20% (offer good through Feb. 14).


BEST PRACTICES
Best Practices = Better Business

One of IIABA’s goals is to help agencies be the best they can be --- to overcome and combat industry challenges --- so agencies can continue to grow and prosper into the future.

The Best Practices series of tools are designed to help agents do just that by providing the information, resources and guidance needed to work harder, smarter and more professionally so they can enhance performance, maximize results and increase the value of their agency. The Best Practices resources continue to grow with the release of the 2007 Best Practices Study, which gives detail on the inner workings of today’s most successful agencies, provides benchmarks against which agents can measure their own agency’s performance and offers guidelines on how to use the study as a tool to improve operations and maximize. Two new offerings from Best Practices include: the Best Practices of Crisis Management, which prepares agencies and their clients for a natural and man-made disaster, and the Interactive Agency Self-Diagnostic Tool, which has been streamlined and made automated to help identify performance gaps and provide suggestions on how to improve. To view at all the Best Practices resources, click here. To download an order form, click here.