..:: Insurance News & Views ::..

Will former New York City Mayor Rudy Giuliani run for the Republican presidential nomination in 2008? Before he potentially makes a bid for the White House, hear from Giuliani first hand at the Big "I" Convention in New York.

Giuliani has kept in the public spotlight in the past few years and shown no signs of slowing down. When Giuliani recently appeared on "Hardball," the political insider talk show hosted by Chris Matthews, Matthews questioned Giuliani on issues central to any presidential campaign: stem cell research, Supreme Court nominees and his views on possible opponents. While some polls show him as the front-runner for the Republican nomination for president in 2008, he has not announced any plans to run.

Don’t miss the chance to see this political star in action. Giuliani will speak on leadership at the Big "I" Convention, taking place Sept. 10-12 at the Hilton New York. Giuliani will be the keynote speaker at the convention’s closing session on Sept. 12.

It’s an appearance keeping with the theme of a lot of his recent work and speeches: heavy-hitting issues of interest to the insurance community. A group led by the former mayor has formed an alliance with the AIG Environmental insurance firm to provide insurance coverage for environmental clean-ups from acts of biochemical terrorism. Additionally, much of Mr. Giuliani’s work focuses on risk management and preparation. The Giuliani Group provides corporations with short and long-term crisis management solutions, helps develop and implement comprehensive crisis operations protocols and advises on internal and external emergency communications procedures.

Make plans now to see the former mayor and take advantage of everything the Big "I" Convention has to offer. For more information, go to www.independentagent.com and click on "Events & Conferences." T O P

Have you discovered the best mix of personality, salesmanship and technical expertise to write just about any piece of business that you want? If you meet all the eligibility criteria, you could be chosen to compete in "The Ultimate Producer Challenge" at the 2005 Big "I" Convention in New York City on Sept. 12.

The Challenge will include 20 producers along with insurance sales expert Roger Sitkins for a day of competition, networking, and fun to find out who really is the "The Ultimate Producer."

The producers chosen to participate in the Challenge will go through a series of group and individual sales exercises and tests on Sept. 12 from 8 a.m. to 4 p.m. During the Challenge, producers will be eliminated from the competition based upon their performance, as determined by the Challenge judges. The Ultimate Producer selected from the Challenge will be announced during the Convention’s closing General Session on Sept. 12. Are you "The Ultimate Producer"? Click here to apply! For more information, contact Madelyn Flannagan at madelyn.flannagan@iiaba.net. T O P

Customers are expensive to acquire and even more expensive to lose. Today’s customer can be demanding, difficult and fickle. Getting customers and keeping them happy is a No. 1 priority in today’s competitive environment. You need new skills, new attitudes and new responses to stay ahead; customers change and if we don’t, we’re left in the dust.

Join Customer Care Coach® publisher, author and workshop leader JoAnna Brandi at the Best Practices Management Institute for a full-day of "continuous improvement." Her energetic style will keep you engaged and excited as you learn how to unleash the power of customer caring in your company. Learn to set your sights on creating consistently positive customer experiences. She’ll raise your customer consciousness and teach you to turn moments of truth into moments of magic.

IIABA’s Best Practices Management Institute will take place Sept. 11-12 at the Hilton New York in conjunction with the Big "I" Convention. Attend this unique event and the Customer Service Excellence session to experience:

· Explore the differences between service and care
· How to stay away from the satisfaction trap
· Understand the emotional bridge between satisfaction and loyalty

· Foundation principles of customer care
· Understanding what you bring to the "eco-system"
· Managing to thrive!

· Learn how the customer keeps "score"
· Understand how expectations are formed
· Become a "manager of the moments of magic"

· The loyalty link – what’s love got to do with it?
· Understand the science behind happy customers
· Are you making your customers sick?

· What to do when you feel yourself getting angry and impatient
· How to communicate company "policies" without losing customer good will
· Learn three great ways to close a call

· What is peak performance and how do you get it
· Understanding energy gains and energy drains
· Moving out of the comfort zone

Experts advise that one of the top ways to increase agency value is to invest in growth. Developing producers and staffs with a strong sales and service culture are key factors; without these foundations in place it is difficult to grow and prosper in today’s highly competitive insurance marketplace. The Best Practices Management Institute has been designed for everyone in every agency. The program features three tracks: Producer Development, Customer Service Excellence and Owners and Managers Essentials.

In spite of a softening market, carrier consolidations, commission cuts and other challenges, the 2004 Best Practices Agencies still managed to perform very well during their last fiscal year. They averaged an overall 15.8% growth rate in net revenue and enjoyed an average pro forma pre-tax profit of 24%. Revenue per employee, an important productivity measure, averaged $133,103, up from last year’s overall average of $125,366.

To gain a better understanding of how these agencies achieved their outstanding results, we asked them to identify their most important success factors. Their answers were surprisingly similar regardless of their size, location, or mix of business.

Most attribute their high performance to multiple factors, but the quality of people topped everyone’s list. In fact, this response dwarfed all other factors. The Best Practices Agencies acknowledge that they would not be able to provide high levels of service and obtain new business without the extensive skills, knowledge and expertise of their staffs.

Best Practices Agencies spend a lot of time and effort to locate, recruit, train and retain ethical, motivated people to work in their agencies. As one agency principal explained, "We know that if we hire and develop only the best employees, the rest will take care of itself."

Employee turnover is low and productivity is high. Despite a softening market and commission cuts in various lines of business, the average commissions serviced per CSR remained fairly level with the prior year’s results.

	<$500K	$500K -$1.25M	$1.25M - $2.5M	$2.5M - $5M	$5M - $10M	$10M - $25M	>$25M
Commercial	$139,096	$224,009	$265,271	$270,100	$342,492	$352,782	$351,025
Personal	$117,299	$149,423	$148,817	$173,577	$161,253	$156,367	$176,485
Life/Health	*	$73,118	$201,352	$258,899	$304,021	$291,647	$358,823
Multi-Lines	$152,870	$232,393	$154,393	*	*	*	*

The "2004 Best Practices Study" is available as a benchmarking tool for your agency. It provides a wide-ranging look at the agencies included in this year’s study group, especially as it relates to the future direction of these firms. The study updates the standard financial and operational benchmarks, with several new ones added, and also reveals where the agencies will invest resources to grow future revenues, what they are doing to improve productivity and how they will maintain their competitive edge. The 2004 study added a seventh revenue category, further demonstrating the growth of Best Practices agencies.

While you’re surfing the Internet during the next month, take the time to go to www.homestore.comto check out the new Trusted Choice® Web banner ad.

The online ad campaign began last Sunday and will run through July 16. Bonus placements could extend its duration to July 30. Trusted Choice® will announce a new end date if the campaign is extended.

Homestore.com is the Internet’s largest real estate Web site. Web surfers go to the site to find or sell a home; buy, build or rent a home; finance a home; find a mover; furnish and decorate their home; remodel and maintain their home; and much more.

Each month, Homestore.com and its network of Web sites draws millions of consumers seeking information and services related to their home. In a typical month, Homestore.com attracts 10.5 million unique visitors. In all, Homestore.com attracts 7% of the monthly Internet population in the United States.

Other Web sites in the Homestore.com network include realtor.com, homebuilder.com, homestore.com, rentnet.com, welcomewagon.com, and seniorhousingnet.com. These sites, too, will feature the Trusted Choice® ad.

The site is a great match for Trusted Choice®. The demographics of Homestore’s audience are a major part of the Trusted Choice® core audience. And, consumers will be exposed to Trusted Choice® at a time when they are contemplating a major life decision (i.e. a home purchase) that will require insurance coverage.

The campaign, which coincides with the traditional peak home-buying and –selling season, is expected to result in nearly 60 million impressions or views of the ad and the Trusted Choice® logo by consumers during its nearly month-long run.

Want to have the latest industry news and trends, management information, specialty lines access and government affairs coverage at your fingertips? To improve the profitability and efficiency of your agency, renew your subscription to Independent Agent magazine. And the best part—it’s free! Take action now. Keep your IA magazine coming, delivered straight to your home or office each month. To validate your subscription online, go to IAmagazine.com and click on "Update Your Subscription." Use the six-digit ID printed on your magazine mailing label and follow the directions. While you’re visiting IAmagazine.com, don’t forget to check out the Premier Insurance Directory (PID). PID is the ultimate monthly guide for insurance products and services, including specialty lines, and the information is searchable by category online. Direct IA subscription questions to Jill Cosgrove at 800-221-7917; jill.cosgrove@iiaba.net. T O P