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T H U R S D A Y , M A R C H 2 0 , 2 0 0 8 Industry News
TRUSTED CHOICE®
The Hartford Becomes Trusted Choice® Company Partner
The Hartford Financial Services Group (NYSE: HIG) announced today they will join the Trusted Choice® consumer brand movement. Trusted Choice® was launched in 2001 by the Independent Insurance Agents & Brokers of America and several independent agency companies to highlight the benefits independent agencies and brokerage firms offer consumers—choice of companies, customization of policies and advocacy support.
“We have always enormously valued our independent agents as strong partners, and we are building on that partnership by becoming part of Trusted Choice®,” says Neal Wolin, president and chief operating officer of The Hartford’s property and casualty operations. “This is an important way to make consumers more aware of the valuable service that independent agents and brokerage firms provide.”
Founded in 1810, The Hartford is one of the nation’s largest diversified financial services companies. Headquartered in Hartford, Conn., The Hartford has approximately 31,000 employees, had $2.9 billion in net income in 2007 and was ranked 82nd on the 2007 Fortune 100 list (based on 2006 revenues). The Hartford is a leading provider of automobile and homeowners’ insurance and business insurance for companies and institutions of all sizes. The Hartford sells its p-c products through a large and growing network of independent agents. After nearly 200 years in business, The Hartford is known for its financial strength and stability, superior customer service and continued operational excellence. For more information, go to www.thehartford.com.
“Having a recognized national brand such as The Hartford join Trusted Choice® will help take this consumer brand to new heights,” says Bob Rusbuldt, Big “I” president & CEO. “The Hartford has a long and impressive history with independent agents, and now the company will further strengthen that relationship to help drive business to the independent agency system.”
“We are excited to partner with a premier company like The Hartford on the Trusted Choice® brand,” says Dave Evans, executive director of Trusted Choice®. “The Hartford name carries a lot of weight with both agents and consumers, and we know this partnership will help continue to raise the profile of Trusted Choice®.”
Trusted Choice® is promoted through a combination of national, state-level and local-agency advertising, promotional and marketing activities; insurance company branding and public relations campaigns. Trusted Choice® is the consumer marketing identity for over 10,000 independent insurance agencies, brokerage firms, their branch locations and 49 leading insurance companies, including The Hartford.
YOUNG AGENTS
National YAC Announces Maurice Herndon Scholarship Winner The Big “I” National Young Agents Committee (YAC) is pleased to announce that Heather Cochrane, a Massachusetts young agent with Renaissance Alliance Insurance Services, LLC, has been named recipient of the 2008 $1,000 Maurice Herndon Scholarship. Young agents who had not attended a Big “I” Legislative Conference in the past were encouraged to submit a 250 to 500 word essay explaining why they should be considered for the award. The National Young Agents Committee extends their thanks to all those who participated in this year’s competition.
The 2008 Big “I” Legislative Conference & Convention will include events geared specifically for Young Agents. Special sessions include: a first-time attendee reception, the Young Agent attendee and InsurPac chairs luncheon, a hospitality event, a “pre-opening” tour of the Newseum and the always-popular Presidents’ Panel breakfast with Big “I” leadership. Young agents will gain valuable legislative and leadership skills at this ground-breaking insurance industry event.
For more information about the Young Agents events taking place during the Big “I” Legislative Conference & Convention, April 2-4 at the Marriott Wardman Park Hotel in Washington, D.C., visit www.independentagent.com and click on Events & Conferences or contact Katie Cosgrove at 800-221-7917; katie.cosgrove@iiaba.net.
IA MAGAZINE
Spring Forward with the March Issue Spring is here and so is the March IA! This month’s edition includes articles to gear readers for the new season including: “In the Mix,” an explanation of why the soft market may mean reassessing an agency’s business mix; “Lean, Green Producing Machine,” a look why new agencies are prospering in spite of a soft market; “The Time is Now,” a report on how increased carrier focus on agents plus a new tax environment is making life insurance profitable; and “Cracking the It List,” a tale of an agent who went high-end to compete in the personal lines market, plus much more! Visit www.iamagazine.com for the issues’ Online Extras.
ACT
Promote Real Time with Eddie The Agents Council for Technology (ACT) is now taking orders for merchandise that promotes the Real Time campaign and includes the campaign’s mascot, Eddie.
Eddie dolls, lapel pins and lanyards are all available for purchase by agencies to help spread the word about the initiative. Click here for a merchandise order form. For more information on Real Time, visit www.getrealtime.org. For more information on ACT, visit www.independentagent.com/act.
IIABA NEWS
Caliper Webinar on Effective Teams
*New Advertisement as seen in the March edition of IAmagazine
Caliper is offering a free webinar on building more effective teams at 1 p.m. EST, April 1. Find out what Best Practices agencies already know --- that people management is the key to success! IIABA’s 30-year relationship with Caliper brings the company’s half-century of job matching experience to members at exclusive discount prices. The seminar will be led by Caliper Executive Vice President Patrick Sweeney, and feature insights from HR directors at BC-USA and Plymouth Tube Company on building teams that deliver. The price, which includes individual, personal consultation, is $235. To sign up for the seminar click here. After registering, you will receive an e-mail with detailed instructions on how to participate in this webinar.
BIG “I” MARKETSSM
The Value of High Net Worth Customers According to a new Luxury Customer Experience Index survey (LCEI) from the New York-based Luxury Institute, an independent research institution that voices the concerns of the high net worth consumer, Chubb scored second in a survey of 15 property-casualty firms. USAA earned the highest score. High net worth clients rated 15 of the largest national p-c insurance brands based on their individual experiences. Big “I” members have access to Chubb & Fireman’s Fund affluent homeowner package programs, both of which are aimed at high net worth consumers. Fireman’s Fund, however, was not included in the survey.
Affluent Households: The Forecast
Despite the sub-prime mortgage debacle and signs of a recession, the affluent market is growing. According to the U.S. Federal Reserve Board's Survey of Consumer Finances 2001 and 2004 surveys, high net worth households are among the fastest growing segments in America. Between 2001 and 2010, families with a net worth of more than $5 million are projected to grow by more than 27% ---a total of two million households. Today, the average net worth of these families is more than $14 million and their combined net worth make them a market worth nearly $25 trillion.
Affluent Households: The Definition
Income is only one part of the equation. Net worth is more telling. By most definitions, net worth, is the sum of one's assets --- home equity, investments, savings accounts, retirement funds, cars, furnishings and such valuables as jewelry, furs, wine collections etc, minus all outstanding liabilities such as mortgage balance, revolving and credit card debt, college loans and so on. Across all households, the national median net worth is $86,000. Half of the population has more than that, half has less.
The biggest and broadest affluent segment consists of people with investable assets of $200,000 and $1 million to $2 million. This group is sometimes referred to as mass affluent. The next segment up from mass affluent is designated as high net worth individuals (or HNWIs). There are no universal criteria here. Generally, HNWIs have invested assets of at least $1 million, although some companies also target younger households with healthy six-figure incomes, knowing their net worth is likely to reach target levels in the near future. Right now there are more than seven million high net worth households in the U.S., with a forecasted growth rate of 16% per year and projected assets of $32 trillion.
Affluent Households: The Opportunity
Along with an increase in wealth comes a large increase in the complexity of managing such wealth. Most high net worth families remain actively engaged in accumulating wealth even as their net worth surpasses eight figures. In addition to their increased wealth, high net worth households have expensive lifestyles. They are the "working rich." According to a Prince & Associates, Inc. survey, nearly nine out of 10 high net worth households report they are "very concerned about losing their wealth" and consider addressing this concern as one of the most important in choosing financial advisors.
As wealth inheritance and retirement take center stage for aging baby boomers, financial advisors and insurance professionals are positioning their practices for this highly desirable market segment. Affluent seniors expect state-of-the-art products and services from their professional advisors. Financial services professionals, insurance agents, wealth managers, trustees, accountants and attorneys will be called upon by both baby boomers and their aging parents to help them navigate their way through the wealth distribution and transfer stage of their estate plans. Agents who understand the demographic of high net-worth individuals and can provide creative solutions, will have a significant advantage over their competition.
Affluent Households: What Agents Can Do
* Familiarize yourself with the Chubb Masterpiece & Firemen’s Fund Prestige Portfolio homeowner packages. Learn the coverage advantages inside & out so that you can sell against the lower priced but sometimes coverage deficient polices many affluent consumers have purchased from the main street market.
* Brush up on life insurance products and sales skills. Or, for those who don’t sell life, consider adding a life specialist to work your book. Life insurance is an integral part in managing any household’s financial strategy and a revenue share with a specialist could be lucrative for your agency.
* Consider hiring someone who has a series 66 and 67 license so your agency can offer interest earning investments such as variable life, annuities and mutual funds.
* If you don’t want to branch out into those areas of financial management services yourself, then partner with a firm that does and set up a referral network. Or let a financial planner work your book and arrange for you to be paid for any sales that are made. Conversely, see if you can work the planner’s client base for leads.
* At a minimum, you should offering E&O insurance to anyone you know who is a financial planner or tax advisor and you can do that accessing the Financial Advisor Professional Liability product on Big “I” Markets.
InVEST
Scholarships Available to InVEST Students Based on the anticipated success of the InVEST silent and live auctions, InVEST hopes to award $50,000 in scholarships this spring to high school and college students currently taking an InVEST class, and with plans to pursue a major in insurance, risk management, actuarial science or business.
This year, for the first time, scholarships will also be awarded to students who have chosen to go directly from the classroom to a career in the insurance industry. InVEST chose to do this based on the feedback from several teachers who indicated that for some students college may not be an option, but these same students are hard working individuals who plan to enter the insurance industry and would benefit greatly from financial assistance for insurance courses. InVEST will be adopting a scholarship distribution model similar to the Florida Association of Insurance Agents (FAIA.) This means students not transitioning to a two or four-year college are eligible for scholarships that would assist them with licensing, IIA courses, CIC or ACSR. Students must still complete the application process, and be current students in an InVEST class. As is the case with all our scholarships, InVEST will distribute dollars directly to the educational institution, or administrator.
We encourage agents involved in the program to rally students to compete for a national InVEST scholarship. Click here to learn more about eligibility and requirements. Applications and essay entries must be received by April 18.
For more information on InVEST, visit www.independentagent.com and click “InVEST” or contact Amber Williamson at 703-706-5425; amber.williamson@iiaba.net.
A 501(c)3 educational trust, InVEST introduces high school and community college students to insurance and the more than 350 diverse careers available within the industry giving students a new outlook on the future. The program offers insurance agencies, brokers and carriers a diverse and talented group of entry-level recruits.
IIABA NEWS
Flood Safety Awareness Week Floods are one of the most common hazards in the United States. The effects floods have can be local, impacting a neighborhood or community, or on a much larger scale, affecting entire river basins and multiple states.
FEMA and the National Oceanic and Atmospheric Administration’s National Weather Service encourages citizens to know their flood hazards. National Flood Safety Awareness Week, March 17-21, is intended to highlight some of the many ways floods can occur, the hazards associated with floods and what you can do to save lives and property. For more information, please visit www.weather.gov/floodsafety/.
Click on the following links for additional flood resources: flood hazards, National Flood Insurance Program, Floodsmart.Gov and Ready.Gov.
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