|
T H U R S D A Y , J U L Y 9 , 2 0 0 9 Industry News
ACT
Retail Agent-E&S Market Initiative Gains Momentum
The Big “I” Agents Council for Technology (ACT), the American Association of Managing General Agents (AAMGA) and the National Association of Professional Surplus Lines Offices (NAPSLO) formed a joint initiative to improve the efficiencies for retail agents interacting with managing general agents and wholesale brokers in the E&S market and to promote the electronic exchange of data between the parties.
“The Retail Agent—E&S Market Initiative has made excellent progress since its May launch with several virtual meetings and an in-person meeting of the work group and its three sub-groups,” says Angelyn Treutel, independent agent, ACT chair and co-chair of the work group. “The work group and its three subgroups now involve over 100 industry representatives including ACORD representatives, retail agents, general agents, wholesale brokers, E&S carriers and vendors all working to improve how retailers and MGA/Wholesalers do business together.” “The E&S community is equally excited about the efficiencies general agents, wholesale brokers, and E&S carriers can derive from more efficient data flows between all of the involved parties,” added John Deibler, director of Scottsdale Insurance and co-chair of the work group. “We have three sub-groups addressing retail agent interface (including applications and supplementals), electronic interfaces between the parties and general agent Web site functionality.” Mike Roy, chief information officer of CRC Insurance Services and a major driver in creating this new initiative, said “The managing general agents and wholesale brokers see major opportunities to apply more of the technologies that the standard market is implementing, such as the ACORD XML electronic standards, Real Time workflows, the use of ACORD forms where possible and more consistent functionality on general agent/wholesaler Web sites in order to be easier to do business with for our retail agent clients.” The objectives of the initiative include improvements in the E&S industry in the next 12-18 months in the following areas: Retail Agent Interface: Focus on E&S carrier supplemental applications to streamline supplemental data requirements and migrate to the use of ACORD standards for applications as much as possible. General Agent Interface: Concentration on data transmission streams from retail agents to general agents as well as within general agents and begin to automate the flow of this data as much as possible. General Agent Web Sites: Develop a roadmap of recommendations for MGA Web site capabilities – Generation 1 is a Web site with basic marketing information. Generation 2 adds login and rating capability. Generation 3 provides for online applications and policy issuance capabilities. Generation 4 expands the Web site for integration with retail agency management systems. Retail agents have vastly improved their electronic interfaces between agency offices and standard carriers through the adoption of Real Time (www.getrealtime.org). Real Time is “the ability to click on a button from a client file in your agency management system or comparative rater for immediate access to carrier information on that client. The transaction may be a quote, billing inquiry, claim inquiry/loss runs, policy view, endorsements or a request for information. This approach provides a single workflow for servicing or quoting.” Retail agents have experienced significant time savings which has resulted in improved client service and more sales for the agents and carriers.
IIABA News
Big “I” Applauds Reintroduction of Surplus Lines Legislation in Senate
Late last month, Sen. Evan Bayh (D-Ind.) and Sen. Mel Martinez (R-Fla.) introduced S.1363, the Nonadmitted and Reinsurance Reform Act of 2009. The Big “I” hails this bipartisan legislation as another example of a positive targeted approach to reform as it streamlines the regulation of nonadmitted insurance and reinsurance. S. 1363 is a pragmatic approach to reforming the surplus lines market, an important component of the state insurance regulatory system. The bill singles out two areas where there is general consensus for reform: surplus lines regulation and reinsurance supervision. Independent insurance agents and brokers play a crucial role in surplus lines (or nonadmitted) insurance, which provides coverage for unique or hard-to-place property-casualty risks. The bill modernizes surplus lines regulation by making the insured’s home state the source of regulation for individual surplus lines transactions. The bill also seeks to reduce overlapping, multiple-state regulation of both reinsurer financial condition and credit-for-reinsurance on the balance sheets of ceding insurers. By applying single-state regulation and uniform standards to the nonadmitted and reinsurance markets along with giving the state sole regulatory authority, the surplus lines bill will preserve the strengths of the state-based insurance regulatory system without the need to create a federal insurance regulator. S.1363 is currently pending in the Senate Committee on Banking, Housing and Urban Affairs. The bill was co-sponsored by Senators Mike Crapo (R-Idaho) and Bill Nelson (D-Fla.) and is expected to continue to gain bipartisan support. Last month, the surplus lines bill was introduced by Rep. Dennis Moore (D-Kan.) and Rep. Scott Garrett (R-N.J.) in the House of Representatives. Similar legislation passed the House in previous Congresses with overwhelming support from both sides of the aisle. The Big “I” believes that such strong bipartisan support coupled with near-unanimous industry approval proves that this model of limited regulatory reform of state regulation is the appropriate and most practical approach.
InVEST
Connecticut Teacher Honored as InVEST’s Teacher of the Year
Gary Barcher, left, receives the InVEST Teacher of the Year award from Tom Minkler.
The InVEST program has awarded Gary Barcher of Bloomfield High School in Bloomfield, Conn. the 2009 Teacher of the Year Award. “Educators like Gary Barcher are key to the success of the InVEST program, but most importantly, the future of our industry,” says Big “I” Chairman Brett Nilsson. “InVEST is the top priority of my chairmanship and crucial to attracting new talent to our industry. With the average age of an insurance professional at 54, we’re counting on Gary’s students and InVEST scholars across the country for our next generation of leaders.” Barcher earned his bachelor’s degree in business education at American International College and a master’s degree in secondary education at Central Connecticut State University. He is also a graduate of the St. John’s University Griffith Institute’s summer insurance teacher program where he now conducts presentations on InVEST. He is a member of the InVEST Teacher Task Force, volunteering time to write a new InVEST curriculum, and has mentored other teachers on the process of setting up INVEST programs. Barcher has taught at Bloomfield High School since 1980. He also coaches the Bloomfield varsity boys’ basketball team and the co-ed varsity golf team. “The enthusiasm and creativity Gary brings to the InVEST experience is reflected in the success Bloomfield High School has enjoyed in recruiting students for the program,” says Tom Minkler, Big “I” executive committee member and president of the Clark-Mortenson Agency in Keene, N.H. “Gary has placed great emphasis not only on mastery of insurance principles but on the merits of practical application through a simulation curriculum that includes the various industry occupational roles of agent, underwriter, sales and other professionals.” The Bloomfield High School Insurance Simulation program Barcher started has students create business cards, set appointments and overcome objections to sell their insurance product by explaining the benefits of insurance as one means of financial protection and responsibility. Students also price policies and adjust claims to experience the complete sales cycle. Barcher partners with Travelers Insurance and local agents to provide speakers, resources and internships.
InVEST
InVEST Presents Dach Award to New York Industry Leader
Dee Macheda, left, receives the Dach Award from Tom Minkler
The InVEST program recently awarded Dee Macheda of the Independent Insurance Agents & Brokers of New York (IIABNY) with the Dach Award, which honors an insurance industry volunteer who has made tremendous contributions in fostering the growth and development of InVEST. The award is named in memory of the program’s founder, Stephen Dach, and as this year’s honoree Macheda will receive a $1,000 cash prize to be used in her InVEST classroom. “Dee Macheda is one of our country’s foremost experts on education in the insurance industry,” says Big “I” Chairman Brett Nilsson. “I have made InVEST one of the top priorities of my chairmanship because the future of our industry is dependent on attracting new talent. We need more passionate and talented advocates for InVEST like Dee and we expect the InVEST program to continue to flourish in New York with her at the helm.” Macheda is the InVEST State Champion for New York and is involved in four local programs. She attends conferences with students, coordinates tours of the local association, speaks to local InVEST classes, assists in curriculum development, conducts mock job interviews with InVEST students and is an active participant in the local InVEST awards ceremony. On a national level, Macheda volunteers her time to assist with the annual InVEST Silent Auction, which funds student scholarships, and serves on the InVEST volunteer Teacher Task Force which convened last weekend to develop a new InVEST curriculum. “Dee brings professionalism, passion and enthusiasm to the InVEST experience and the success of the program in New York is largely to her credit,” says Tom Minkler, Big “I” executive committee member and president of the Clark-Mortenson Agency in Keene, N.H. “Dee’s work from the classroom to the national level has made tremendous strides and serves as a model for other InVEST efforts across the country.” Macheda is the curriculum development, design and instruction specialist for the IIABNY. Previously, she held the positions of IIABNY director of education, director of research and director of information and meetings. Macheda’s career also includes time as a personal and commercial lines underwriter. As the agency education coordinator at the Hanover Insurance Group, she designed and taught commercial and personal lines coverage and rating courses. Macheda earned her bachelor’s degree from Syracuse University, her master’s degree in adult education from Elmira College and is a recipient of one of the first Insurance Training Professional designations from the Society of Insurance Trainers and Educators.
Virtual University
VU Publishes New Consumer Article on Lowering Insurance Costs
In the July 3 VUpoint newsletter, the Big “I” Virtual University published two versions of the article “Reducing Your Insurance Costs…Distinguishing Bad Advice from Good Advice.” One version is geared toward Big “I” member agencies, and the other is for their customers. The member version can be found here. Near the end of the member version is a link to a consumer-friendly version of the article which dispels four insurance myths and includes a top 10 list of things consumers can do to control insurance costs without creating potentially catastrophic coverage gaps. Big “I” members are free to include their own byline and letterhead when distributing this consumer article to customers, local newspapers or when posting it on their Web sites. Much has been written in recent months about how to reduce insurance premiums as one aspect of an economic belt-tightening strategy. Unfortunately, too much of this advice has been misguided, often coming from consumer Web sites and other sources with little understanding of insurance and risk management. The purpose of this article is to identify some of the bad advice being bandied about and to reinforce some of the good advice. This article was broadcast to all VU Twitter followers long before appearing in any Big “I” publications. For timely delivery of critical information, sign up as a VU Twitter follower by clicking here. If you do not have your login information for the VU and Big “I” Web sites, e-mail logon@iiaba.net and provide your name and contact information.
Young Agents
YAC Awards Deadline Approaching
Attention all Young Agents – the YAC awards submission deadline is July 15. Have you submitted your application yet? The Big “I” National Young Agents Committee (YAC) is seeking submissions for the 2009 YAC awards in the following categories: membership development, state committee project, communications, Young Agents meeting and political involvement. Outstanding Young Agents Committee of the Year and first runner-up honors will also be awarded. Participating in the National YAC awards program demonstrates the commitment state Young Agents committees have for perpetuating the independent agency system. The 2009 YAC awards will be presented at the Young Agents Leadership Institute, September 11-23 at the Hilton New Orleans Riverside in New Orleans. YAC award winners will also be featured during the Magnificent Seven event at the Young Agents Leadership Institute. This unique event is an interactive panel discussion where attendees will learn from Young Agents offering insight into how they achieved award-winning results. Entries must be postmarked by July 15. Visit www.independentagent.com and select “Young Agents” under the “Member Resources” tab. Then click on “Tools” to download the 2009 YAC awards criteria. If you have questions, contact Katie Cosgrove at 800-221-7917; katie.cosgrove@iiaba.net.
Big “I” Markets
Advice from a Bond Market Broker
Frustrated by your agency's work with surety bonds? You are not alone! But, did you know your agency may actually be losing money on surety bonds? That's Geoff Hathaway’s message. As president of Goldleaf Surety Services, LLC, a Minnesota-based specialized national surety broker, Hathaway says surety is a specialized industry where consistent success requires a high degree of skill in financial and credit analysis and access to a wide variety of highly stratified, specialized carriers. Hathaway says agency principals who try to develop some type of in-house surety expertise often end up incredibly frustrated by the effort. Knowing bonds is important to many agents’ clients, especially if they have any significant number of contractors in their agency's book. Attracted by what would otherwise seem to be favorable commission rates on surety bonds, agency owners often begin by dedicating a CSR to surety and ultimately try to hire a "surety producer." However, Hathaway says the benefits of dedicating an employee to surety don’t add up. "A lot of agency principals fail to recognize up front that they are spending money to go after a mere 1% to 1.2% of the premium volume available in the p-c industry,” says Hathaway. “Even if someone in the agency can get good at it and develop all the market relationships needed to be successful for all the agency's varied clients, the small amount of surety revenues does not cover the salary and overhead that needs to be dedicated to the surety specialist and any support staff." Goldleaf works with more than 800 insurance agencies and brokers around the country who need help placing surety bonds, and Hathaway has found that many agency owners eventually realize surety is too different from insurance to make money at it. Even when their CSRs are able to place some bonds quickly and easily, other bonds consume a great deal of time and effort and offset the gains made on the easy-to-place bonds. Hathaway says the solution lies in allying your agency with a highly skilled, high-service surety broker like Goldleaf who can deliver consistent, professional underwriting assistance, extensive market capacity and a high level of service and counseling to clients. Commission level is the same whether you service the bond or allow Goldleaf to work directly with your client. Registered members of Big "I" Markets can take advantage of Goldleaf's unique service by logging in to www.bigimarkets.com. Not registered? Click here to sign up.
Big “I” Markets
Marine Market Expands
Big “I” Markets is pleased to announce an expansion of its marine market offered through MiddleOak®, a marine specialist for more than two decades, and the same company the Big “I” partners with for habitational markets. Listed as Marine Insurance - Premier Boat Coverage within the personal lines markets section on the BIM product menu, the market will write vessels of all sizes up to $1.5 million, including boats that are less than 26 feet. MiddleOak is a one-step, high quality solution for insuring pleasure boats of all sizes, providing agreed value and total loss replacement cost coverage on partial loss (even machinery) for hulls regardless of age, size or location. Other programs offer different policies with different coverage based on the age or size of the vessel, which can confuse the insured and non-specialty agents. MiddleOak premier coverage appeals to owners who take pride in their vessels and do not want anything but new, standard manufacturer parts when a claim is settled. Other companies may not offer new replacement equipment, and this feature helps you from an E&O perspective because you will not have to explain replacement issues to insureds. Click here for a coverage comparison scenario, and click here for more details on this program. This product is currently available to members in Connecticut, Delaware, Illinois, Indiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Tennessee, Virginia, Vermont and Wisconsin. Between this new market and the existing marine market offered via SkiSafe, member agents now have a market for just about any marine exposure. To see a quick comparison chart between the two markets click here. Log on to www.bigimarkets.com to learn more or to request a quote.
Big I AdvantageSM
Members Save with FedEx
Did you know that the Big “I” can help you save on your shipping costs? Big “I” members can now save up to 26% on select FedEx® shipping services. For more information or to enroll in this free discount program, click here or call 1-800-636-2377, 8 a.m. – 6 p.m. EST, Monday – Friday.
InsurBanc
Build Your Own Rewards: The InsurBanc Rewards Visa
InsurBanc, the bank founded by agents for agents, continues to seek out the best-in-class financial products to meet the unique needs of insurance professionals. The company’s latest product, the InsurBanc Reward Visa Credit Card, comes with the features and benefits that agents have said are important to them, such as a free Rewards program. Every purchase gets you closer to one of our thousands of reward options, such as gift cards, travel, merchandise and even cash. You can also “Build your Own” rewards program. See something you want to reward yourself with? With “Build Your Own Rewards” you can purchase the reward yourself and work with a customer service representative to assign points. Then InsurBanc will deduct the points from your total and refund the purchase price. The InsurBanc Rewards Visa also offers: - No annual fee
-Choose from business or personal platinum cards.
- Special introductory APR on purchases and balance transfers, and no balance transfer fees.
-More than 10 enhanced protection benefits, including: personal ID theft protection, travel accident insurance, purchase security, emergency evacuation and transportation, travel and emergency assistance, return protection and more.|
- 24-hour customer service over the phone and on the Web.
Applying is easy and secure. Click here to find out more or to apply. To learn more about InsurBanc, visit www.insurbanc.com or call 1-866-467-2262.
|
