Independent insurance agents have traditionally focused less oncorporate image than on personal contact to build their books ofbusiness. However, as time-challenged consumers increasingly lookfor quick and reliable solutions to their buying needs, the oldadage “image is everything” becomes even more meaningful. Foragents who want to stay with or ahead of their competitors, now maybe a good time to consider a branding initiative.

The web site www.bnet.com defines corporate branding as “thecoherent outward expression projected by an organization. Corporatebrands distinguish organizations from their competitors, orient theorganization in the minds of customers and employees, and create aperception of what an organization stands for.”

The American Marketing Association says “branding is not aboutgetting your target market to choose you over the competition, butit is about getting your prospects to see you as the only one thatprovides a solution to their problem.”

A tall order, especially for small and mid-sized companieswithout dedicated corporate communication departments.

To gain some perspective specific to branding for insurance andinsurance agents, we spoke with Dave Evans, executive director ofTrusted Choice, the “home brand” of The Independent InsuranceAgents & Brokers of America (IIABA), and Ted Besesparis, seniorvice president of communications for the National Association ofProfessional Insurance Agents (PIA). Both men and the organizationsthey represent clearly take the concept of branding seriously.

FL UW: Can you tell us how you define branding as it relates toyour member agencies?

Evans: There is no one definition. It's literally the essence ofeverything one does. It's the experience the customer has fromworking with the organization. And it's important to consider thateveryone has a brand, whether they know it or not.

Besesparis: Branding isn't really a new concept. It's beenaround for many years, but we just called it by other names.Branding really describes your competitive advantage, who are youand what your value proposition is to the consumers in themarketplace.

FL UW: In your opinion, what has changed (if anything) that'scausing you to place an emphasis on branding for your memberagencies?

Evans: Up until a few years ago we had a zero sum game andbasically it was captive agents versus independent agents. At issuewas who could best serve the customer. Everyone got their fairshare and it worked. That changed primarily due to technology, andthe local main street agent no longer had the same grip on localbusiness. Business went from a geographic emphasis to more of atechnical one. Direct writers have a brand, State Farm andProgressive agents have brands; independent agents need to payattention to their brand as well.

Besesparis: As respect to PIA, we did not approach the issuefrom the perspective that our member agents needed a new identity.Our agents already have an established identity as “Local AgentsServing Main Street America.” They are satisfied with that identitybecause it accurately conveys who they are and what they offer tocustomers. What we have done is take what the member agents alreadyhad and packaged it and helped them market it. We try to make useof our platform on a national basis to get the word out, but thePIA branding program is not top-down. It's a grassroots, localprogram for our local agents.

FL UW: There's a wide variance in perception among businessowners, including agency owners, as to how customers perceive abusiness or service, where they get the information, how they“shop” and so on. Do you feel that independent agents understandthe change that is happening?

Evans: Yes, and the soft market has helped agents realize thatthings may have to be done differently. Over 10,300 agents inTrusted Choice speak to the fact that agents do “get it.” Some ofthe factors involved include the need for standard practices,capabilities, and markets to perpetuate the agency. Branding theagency requires that the owners look at all of these areas. Inaddition, carriers are looking for agencies to be more of amarketing force, as opposed to just a sales force.

Besesparis: Absolutely. We've been pushing the concept of achanging marketplace for years, especially the idea that you can't“do” marketing once and then you're done.

In fact, we're working on a next-generation of tools that willhelp our member agencies in the ongoing effort to establish andimprove their public image and marketing specifically to Gen X andGen Y consumers. We'll be unveiling that campaign in the firstquarter of this year. We're always working with the agencies on newand better ways to deliver the message.

FL UW: Carriers are dealing with these same issues concerningtheir brands. How have branding changes at the carrier levelimpacted this dynamic at the agency level?

Evans: In general, carriers got the concept of branding andbroad marketing before the agency force did. That in itself createsan interesting tension. Insurance companies have increased pressurein a number of ways on agents, including modifying their carrieridentity to include functioning as a direct writer. While thetension is real, there is still room for retail agents in thepicture. Most carriers really want producers to be out seeingclients and using that “on the ground” advantage to the fullest.And of course, independent agents more than ever can capitalize ontheir ability to personally customize coverage for each uniqueinsured's situation.

Besesparis: I think the impact of direct writers or captivedistribution channels serves as a motivator for our independentagents. GEICO, as an example, has spent hundreds of millions ofdollars on their TV advertising and our agents compete with themand other direct writers. It's also a motivation for the agents toco-brand with the carriers they represent, especially those with ahighly recognizable, positive public image. We have 63 carriersthat have joined with us in our branding initiative, and we'repleased to have recently added Travelers to that list.

FL UW: Is it possible for an agency to be successful by simplycontinuing to conduct business the way it has historicallyconducted business?

Evans: Agents just trying to maintain modest growth levels arecompeting with other agents and carriers that are trying toaggressively grow their business, so I'd say that agencies lookingto maintain the status quo are in trouble.

Besesparis: If you're talking about marketing and advertisingthe same way year after year, no.