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April 1, 2009
| | | | In this Issue
• How We See It: Rampant Spending in State Budget Remains Major Concern for IIABNY
• Recommend Your Favorite Tech Vendors to IIABNY
• Reminder: Still Time Left to Sign Up for Free April 2 Social Media Webinar
• Study Finds Agency Satisfaction Closely Linked to Business Sent to Insurance Companies
• Governor, First Lady Honor Head of Iroquois Group for Business Achievements
• Spring Brings Rise in Trusted Choice® Marketing Reimbursement Requests
• Breaking News: IIABNY Inks Joint Marketing Agreement Pact with GEICO
• The E&O Report, April 2009
"Duties and Obligations Required by Professional Liability Policies" (Member login required)
| Hot Links Local Events | Education Calendar | E&O Reports |Capitol Reports | The Situation Room | Technology
Word on the Street Podcast | Ask Tim Podcast
| How We See It
Rampant Spending in State Budget Remains Major Concern for IIABNY Passage of the State Budget, which is taking place as this is written, raises some serious concerns about New York's business climate in the next few years, and there are particular concerns that apply to the insurance industry. As budget negotiations began back in December for the 2009-2010 fiscal year, we knew this would be a difficult budget with New York facing a $47-billion deficit over the next four years. We knew IIABNY would need to be even more aggressive in its advocacy efforts by opposing proposals that would have a negative impact on producers and the insurance industry. We would have to work tirelessly to see ideas, such as dramatically increasing fines and penalties and hiking fees for state services, remain just that—ideas. However, we didn't anticipate the state Division of the Budget would propose shifting millions of dollars in new costs to the property-casualty, health and life insurance industries through new assessments added to the Insurance Department's budget. IIABNY has been working closely with other segments of the insurance industry to oppose the cost shifting, as well as new health insurance taxes that would impact all of us in our business and personal lives. While we successfully opposed some proposals, the cost shifting and many health insurance taxes remain in the state budget bills. Our concern as an association continues to be the health of the New York business climate. We are particularly concerned about the insurance market and those companies domiciled here who will be saddled with the additional costs of health programs shifted to them. All those involved in state government need to ask themselves one question. What type of climate do they envision for the insurance industry when they load more costs onto companies? These burdensome expenditures make it much more difficult for those insurers domiciled in New York to compete with national companies and for consumers to afford all types of insurance. We will continue to strongly communicate to all those involved in state government this one important message. Continued rampant state spending financed through additional taxes imposed on the business community and the insurance industry cannot be sustained. IIABNY will continue to be an aggressive leader working with all segments of the industry, and we will remain at the forefront of opposition to more state spending paid for by our industry. For more on the 2009-2010 New York State budget, check out the Capitol Report. Then. let us know how you see it. E-mail IIABNY Insider with your thoughts, opinions or reactions to "How We See It." If you would like your response to be considered for publication in "How We See It," please provide your name and phone number where you can be reached. | | | Top of page | | | Recommend Your Favorite Tech Vendors to IIABNY
IIABNY is looking for recommendations regarding technology vendors, software, and consultants to collect and then post on IIABNY's Web site for members to easily reference. It will be a great tool to share your recommended vendors with other members as well as find new ones for your own agency. To recommend a technology vendor, software, or consultant, complete the online technology referral form. If you have any questions regarding the referral form, e-mail Kathy Glahn, IIABNY assistant vice president of Information Systems, or call her at (800) 851-8853, ext 253. | | | Top of page | | | Reminder: Still Time Left to Sign Up for Free April 2 Social Media Webinar
LinkedIn is one of several online social networking sites that will be addressed in a free Webinar for IIABNY member agents. Presenter Paul Banuski, IIABNY staff liaison to the Next Generation Insurance Professionals and manager of the IIABNY LinkedIn Group, will show how the tools of Web 2.0 can be utilized by an agency or brokerage that wants to raise its online profile. The Webinar will begin at 11 a.m. on April 2. IIABNY member agents can go online to register for the Webinar. Participants are encouraged to log onto the webinar 10 minutes before the start time. | | | Top of page | | | Study Finds Agency Satisfaction Closely Linked to Business Sent to Insurance Companies
Offering various types of insurance policies that meet diverse customer needs and ensuring that efficient, courteous and knowledgeable contacts are available have a particularly strong impact on overall agent satisfaction with insurance companies, according to the recently released J.D. Power and Associates 2009 Insurance Agency Satisfaction Study. The inaugural study measures the satisfaction of independent insurance agents and agency staff with the personal property and casualty insurance companies they represent. Agent satisfaction is examined across six factors. In order of importance, they are: key carrier contacts (32 percent), policy offering (23 percent); claims (16 percent); technology (13 percent); price (10 percent); and compensation (5 percent). "Although it may seem that compensation would be the primary driver of agent satisfaction, in fact, elements that are related to agent support and products are the key differentiators," said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. "Insurers that provide helpful and knowledgeable business contacts and provide a variety of policy offerings help to better meet the needs of consumers, which leads to greater levels of satisfaction among agents." The study finds that agent satisfaction typically increases the more often agents interact with the business contact from their insurance company. Agents prefer to receive business contacts via phone or e-mail at least once or twice a month. However, satisfaction levels are particularly high when the business contact visits more than once per month. In 2009, fewer than 15 percent of agents report receiving such frequent visits. "Contacting agents on a regular basis to provide support is critical for an insurance company, particularly when it comes to business growth," Bowler said. "Agent satisfaction is very closely linked to the overall business growth of an insurer, as agents have tremendous influence over policyholders when it comes to switching providers. In fact, 60 percent of consumers report that they would follow their agent recommendation to switch to a new insurance company. Clearly, agent satisfaction can have a major impact on policy growth for an insurance company." In particular, as agent satisfaction increases, the likelihood of agents increasing their premium business with an insurance company also rises. Offering a marketing or advertising budget also greatly impacts agent satisfaction, according to the study. In 2009, nearly 60 percent of agents report that they did not receive any budget for local marketing or advertising. However, among those agents who received and used all of the funds provided by the insurer for advertising and marketing purposes, satisfaction scores were 116 points higher on average than among those agents who were offered no funds for such endeavors. The study also finds that satisfaction declines considerably as the amount of time it takes for insurance companies to notify agents of a customer-filed claim increases. The 2009 Insurance Agency Satisfaction Study is based on responses from 1,589 insurance agents evaluating more than 10 insurance companies across the industry, including AIG, Allied, Chubb, Erie Insurance, Farmers/Foremost, Fireman's Fund, The Hartford, Liberty Mutual, Progressive and Travelers. The study was fielded in November 2008. | | | Top of page | | | Governor, First Lady Honor Head of Iroquois Group for Business Achievements
Laurie Branch, president and CEO of IIABNY member The Iroquois Group Inc., is among seven women recently recognized by Gov. David Paterson and his wife, Michelle, as a career trailblazer. Branch received the New York State Women of Excellence Award March 24 during the sixth annual Women of Excellence Awards Celebration at the State Capitol in Albany.  "I was honored to receive this recognition," said Branch, "because I see it as a testament to the excellence of the Iroquois team and recognition of the viability and importance of entrepreneurs like our Agency-Members who contribute so significantly to the social and economic fabric of New York State and the entire country."
Branch, who received the "Woman of Business" award, graduated from Dartmouth College and earned her master's degree in business administration at the Amos Tuck School of Business at Dartmouth before joining Procter & Gamble in the Brand Management program. After four years with P&G, Branch left her position as Brand Manager to join The Iroquois Group as a partner in 1984. She is currently responsible for all financial and organizational aspects of the group. Other women were honored during the Women of Excellence awards ceremony for their accomplishments in the fields of health, justice, law enforcement, community service and education. | | | Top of page | | | Spring Brings Rise in Trusted Choice® Marketing Reimbursement Requests
The buzz in the air this spring is more than just bees. Trusted Choice® agencies are excited about the branding program's Marketing Reimbursement Program. Agencies that order stationery, update their Web site or other collateral in 2009 with the Trusted Choice logo are eligible for up to $500 to offset the cost. In today's economy, why not take advantage of these marketing dollars? Agencies are using their dollars on: stationery and business cards, brochures, shirts, folders, signs for their buildings/offices, automobile items, decals, newsletters, giveaways and Web sites. You can use your current vendor, or Trusted Choice has a list of preferred vendors that already know the logo rules and have designed special offers for Trusted Choice agencies. So, while taking stock and cleaning the office this spring, revamp your collateral/Web site with the Trusted Choice logo and apply online for your reimbursement dollars. Not a Trusted Choice agency yet? Send an e-mail message to Ines Hoyle to learn more about the benefits of this one-of-a-kind independent insurance agency brand. | | | Top of page | | | Breaking News: IIABNY Inks Joint Marketing Agreement Pact with GEICO
IIABNY today announced it has signed an agreement with auto insurer GEICO to form a joint venture. The four-year deal gives the insurance giant access to the not-for-profit trade association's 1,800-member agencies in return for cash and options on stock in Berkshire Hathaway, GEICO's parent company. IIABNY did not disclose the amount of the contract, but sources hinted that it is in the eight-figure range. As part of the agreement, IIABNY will display the GEICO logo along with the Trusted Choice® logo on all Web sites, advertisements, letterhead, business cards and other promotional materials. On top of the payments to New York's oldest insurance producer trade association, GEICO plans to establish an advertising fund for use by IIABNY members. "As a long-time admirer of GEICO's operations, I am very pleased that our two organizations have agreed to work together," said Neal Sullivan, IIABNY chair of the board and president of Sullivan Insurance Agency in Mahopac. "The professionalism of IIABNY's member agents combined with GEICO's advertising prowess and low, low prices will provide a synergy that will benefit both organizations." A joint advertisement featuring GEICO's trademark caveman at a sporting event in the Carrier Dome in Syracuse is planned. IIABNY is headquartered in Dewitt, New York, a Syracuse suburb. IIABNY President and CEO Dick Poppa said, "A 15-minute phone call can save you 15 percent. In our case, it earned much more than that. We are very pleased to be able to partner with one of the most respected names in insurance." "If you believed one word of this, all I can say is happy April Fool's Day," Poppa added. | | | Top of page |
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