T H U R S D A Y ,   J U  L Y   2 7 ,   2 0 0 6

 Industry News

E D U C A T I O N
Complete the 2006 Agency Universe Study Questionnaire And Be Entered in Cash Drawing

Nearly 30,000 independent agencies nationwide received an e-mail invitation from Big "I" CEO Bob Rusbuldt requesting their participation in the 2006 Agency Universe Study. Timing is critical, so we urge you to complete the survey online no later than July 30, 2006.

The Agency Universe Study, a joint project of the Big "I" and Future One, provides the insurance industry with the most comprehensive and authoritative information about the independent agency system. The broad-based survey, conducted every two years, studies common core elements, patterns, trends and concepts that are affecting the independent agent and broker community. The Response Center, an independent market research firm, conducts this study to ensure the data quality and confidentiality.

The survey will take approximately 45 minutes to complete and can be accessed through the URL provide in the e-mail invitation. If necessary, you can exit the site during the interview and re-enter at a later time to complete the survey.

Complete survey results are expected to be published in October 2006. As a token of appreciation, all participants will be entered into a drawing for participation prizes totaling $3500, including a $1,000 grand prize, two $500 second prizes, four $250 third prizes and five $100 prizes.

If you have any questions or concerns about this survey, please contact Rebecca Duchin of The Response Center at 215-641-2209; rduchin@response-center.com, or Madelyn Flannagan, Big "I" VP of education and research at 800-221-7917; madelyn.flannagan@iiaba.net.

I I A B A   N E W S
A Little Time, A Little Sweat Can Make A Big Difference

Be part of the Rebuild of New Orleans The Big "I" Habitat for Humanity Project

Don’t forget to pack your work boots and tool belt for the Big "I" 2006 Fall Leadership Conference Community Project on Sept. 8, 2006. You can make a difference in the lives of many New Orleans residents. While progress has been made, there is more work to do to ensure that everyone has a place to call home. Habitat for Humanity, with the help of over 30,000 volunteers, hopes to build 1,000 homes by mid-2007 and you can help. The Big "I" is coordinating two building shifts in partnership with Habitat for Humanity on Sept. 8, one from 8:30 a.m. to noon and the second from 12:30 to 4 p.m.

Anyone can volunteer! Participants must complete a separate registration form. Opportunities are limited to the first 300 registrants so be sure to sign up early. Let’s show our support New Orleans!

Not sure about your construction skills? No problem! Volunteers at all levels of construction experience, from first-time builders to experienced professionals, are welcome. For more information please contact Madelyn Flannagan madelyn.flannagan@iiaba.net; 800-221-7917.

Special thanks to the following sponsors of the Big "I" Community event*:

• Applied Systems
• Encompass Insurance
• Fidelity National Insurance Services
• Safeco Insurance
• Swiss Re
• The Hartford
• Travelers
• Zurich North America
• Independent Insurance Agents of Louisiana
• Independent Insurance Agents of North Carolina

*Contributors as of 7/25/06

If your company or organization is interested in contributing through sponsorships contact Beth Montgomery at 800-221-7917; beth.montgomery@iiaba.net.

Y O U N G   A G E N T S
2006 Young Agents Leadership Institute

The 2006 Young Agents Leadership Institute will take place Sept. 8 through 10 at the Hilton New Orleans Riverside. This exciting event features distinct breakout sessions focusing on membership development, communications and political involvement. Lisa Harrington, officer and vice president of eEducation at the Florida Association of Insurance Agents, will present during the membership development session. Harrington joined the insurance industry in 1983 and has helped design and pilot new programs for FAIA members. Peter van Aartrijk, managing director of The van Aartrijk Group, LLC will provide attendees with the communications and public relations skills they need for strong and effective client relationships. The van Aartrijk Group, LLC is a boutique communications firm specializing in insurance and financial services. Nathan Riedel, vice president of political affairs at the Big "I" Capitol Hill office, will provide an interactive presentation on the political and policy issues surrounding the insurance industry.

The 2006 Young Agents Leadership Institute also features keynote speakers, Young Agent Committee Awards and the Young Agent event on Bourbon Street. Click here for updates and to register online. For more information, contact Katie Cosgrove at 800-221-7917; katie.cosgrove@iiaba.net.

T R U S T E D   C H O I C E®
Online Ad Campaign Set

You know that Trusted Choice® kicked off its summer 2006 Ad Blitz in June. You’ve heard all about it over the past month. The ad campaign will continue all summer on CNN/Headline News from July 10 through 30 and the Weather Channel from Aug. 7 through 27. You know that you can view network ad schedules here. Surely, by now, you also know that more than 350 TV spots will air nationwide during the summer.

What you don’t know is that a complementary, 45-day Internet ad campaign will appear on two popular consumer Web sites: AOL.com and Move.com (formerly Homestore.com, on which Trusted Choice® previously advertised with great consumer response). AOL.com has a unique audience of more than 5 million subscribers. The Trusted Choice® ads will be featured on AOL’s homepage as well as real estate and e-mail pages. Move.com is the Internet’s largest real estate destination, with sites including Realtor.com, Move.com, Rentnet.com, Homeplans.com, and Welcome Wagon a part of the network. More than 6 million home buyers and shoppers use the Move.com sites every month.

We are also using SpecificMEDIA a full-service interactive marketing company that consists of a network of more than 450 premium web sites reaching 75 million unique users each month. SpecificMEDIA identifies Web users within their network who are consistent with Trusted Choice®’s primary consumer target and are actively searching for home-related insurance. Once a user has been identified as an "adult homeowner" SpecificMEDIA will deliver the person a Trusted Choice® banner ad no matter what site they visit within the network.

This extensive nationwide ad campaign is a great opportunity for you to run tie-in ads—print, radio, TV or billboards—in your community. Agents who invest a little time and a portion of their marketing budget on a tie-in advertising campaign will establish their agency as the smart choice for insurance and financial services. Click hereto access a flyer with more information. Millions will be seeing Trusted Choice® ads during the Summer ’06 Ad Blitz. Don’t let this opportunity melt away! For additional information, contact Jenner Gohr at jenner.gohr@iiaba.netor (800) 221-7197.

B E S T   P R A C T I C E S
Study Reveals Agency Comp Trends

Anecdotal information isn’t enough when it comes to structuring owner, executive and producer compensation and incentive plans. With compensation and benefits accounting for 58 to 64% of an agency’s revenues, owners and executives want to make sure their plans will attract and retain top performers – but not so much that profitability is threatened.

If you want to ensure your compensation plans are competitive and cost effective, you’ll be interested in the results of a new national survey just released by The Hartford’s Business Management Group (BMG). The 2006 Owner, Executive & Producer Compensation Survey, conducted in March 2006, reports on responses from 162 agencies and brokerage firms of all sizes and from different geographic locations. It is designed to give agency principals the information they need to develop competitive compensation plans that will attract and retain management and sales talent.

Some of the trends noted in the survey include:

• Increased emphasis on development of new accounts. More than one-third of participants are changing commission structure and/or bonus incentives to motivate producers to focus on new business production.
  
• Level of compensation for producers is directly related to agency size and individual production. The smallest agencies, with less than $500,000 in revenue, average $55,000 total compensation per multi-line producer, while larger agencies, with revenues between $2.5 and $5 million, average $106,967.
  
• Substantial numbers of agencies are paying commissions to customer service representatives for writing new business. The success of agencies increasingly depends upon CSRs to round accounts, and compensation is often structured to reflect this. The study found that on average, 65% of agencies pay customer service representatives (CSRs) for writing new business, up significantly from 43% in BMG’s 2002 Survey.

Included as a part of IIABA’s Best Practices Toolkit , BMG’s 46-page report is a unique look at owner, executive and producer compensation collected from responding agencies of all sizes and geographical locations. Responses are categorized by lines of business and six regions, as well as 2005 total agency revenue— ranging from the smallest (less than $500,000) to the largest (more than $25 million) to assist owners in analyzing information pertinent to their agencies. The survey is available from BMG for $175 plus applicable taxes. For additional information, contact BMG at 800-772-0208 or visit www.bmgconsulting.com.

Visit the Best Practices area of the Big "I" Web site at www.independentagent.com today. For more information about making your agency a part of the Best Practice program, contact Madelyn Flannagan at madelyn.flannagan@iiaba.net.

I I A B A   N E W S
Capitol Hill Office Makes Two Hires

The Big "I" Capitol Hill office has made two new hires: Thomas Koonce has joined the federal lobbying team, and Leigh Carter has joined the political affairs group.

Koonce, previously the manager of government relations for Accenture LLP since May 2005, is also an attorney with extensive Capitol Hill and private sector experience. He joins two fellow assistant vice presidents, Brendan Reilly and John Prible, in the Big "I" Capitol Hill office.

Prior to working at Accenture, Koonce was legislative director for Rep. Brad Miller (D-N.C.) from 2003-05, where he oversaw Rep. Miller’s legislative agenda and served as the congressman’s top aide on House Financial Services Committee matters. Prior to that, Koonce worked on the Democratic staff of the House Judiciary Committee. It was his second stint on Capitol Hill, where he previously staffed Rep. Stephen Neal (D-N.C.).

After earning a J.D. from William & Mary School of Law in 1998, Koonce worked four years as an associate at the law firm Clifford Chance US LLP in Washington (1998-2002). He earned a bachelor’s degree in political science from Davidson College (N.C.) in 1993.

"We are very glad to be expanding the size and the reach of our Government Affairs team, and Tom Koonce is a great hire for us," says Charles E. Symington Jr., Big "I" senior vice president for government affairs and federal relations. "He has great experience in two of the Congressional committees where the bulk of our issues are reviewed. His contacts, his experience and his talent will be tremendously beneficial in advancing the legislative goals of independent insurance agents and brokers in the halls of Congress."

Carter comes to the Big "I" political affairs team from the office of Congressman Jeb Hensarling (R-Texas), where she served as deputy communications director and previously as a staff assistant. She also interned for Congressman Pete Sessions (R-Texas), worked on the Bush-Cheney Get-Out-The-Vote operation in 2004, and held positions in public relations, marketing and research while studying at the University of Texas at Austin, where she earned a bachelor’s degree in 2004. Carter replaces Jennifer Dlugasch, who left to pursue a career in education.

"Leigh is a real go-getter, with great experience on Capitol Hill and in electoral politics, and she comes to us highly recommended," says Nathan Riedel, Big "I" vice president for political affairs. "We are very glad to have such an enthusiastic, proven achiever in this position, and we expect great things from her as we advance our rapidly growing PAC."

I N V E S T
Annual Dach Award Presented

InVEST, the only education program that strengthens the insurance industry by developing a large pool of qualified recruits, has named its annual Dach Award recipient. The annual Dach Award recognizes a volunteer for involvement in fostering the growth and development of InVEST programs. The award is named in memory of the program’s founder, Stephen Dach, and each winner receives a $500 cash prize to be used in his or her InVEST classroom. This year’s agent-volunteer winners are Lindsey Shank with BB&T-Iler Wall & Shonter Insurance, St. Petersburg, Fla.; and Bob Betters of Watson Insurance Agency Inc., Gastonia, N.C. This year’s company-volunteer winner is Bob Baxter, CEO and general manager of Dryden Mutual Insurance Co., Dryden, N.Y. For more information, contact Sandra Skipper at 703-706-5437 or sandra.skipper@iiaba.net or go to www.independentagent.com and click on InVEST.