Although independent agents and their carriers command 80percent of the commercial lines market, they only write 34 percentof personal lines--a segment that's ripe for stability and growth,especially in today's uncertain commercial market. The newlylaunched Personal Lines Growth Alliance (PLGA) wants to changeall that. A coalition of independent insurance agents, carriers,service providers and trade associations, PLGA's mission is todrive personal lines growth for independent agencies.

Headed by Steve Brooks, president of Steve Brooks Insurance Services inWestlake Village, Calif.--whose own agency's business is 65 percentpersonal lines--PLGA will show independent agents and brokers thepotential for growth, share knowledge and resources and helpposition them with their consumers.

Read AA&B's feature story "Up close and personal" onsuccessful personal lines strategies.

AA&B spoke with Brooks about the strategy behindthe new organization, and how he plans to serve members and helpthem reach their personal lines growth goals.

AA&B: What's the thinking behind theformation of this organization at this particulartime?

Brooks: The moment has never been more rightfor a coordinated movement. An effective alliance effort in termsof capturing personal lines will benefit agents, insurancecompanies, vendors and trade associations; in short, the entirecommunity that supports the concept of choice and the independentinsurance agency system.

Independent agents may continue to maintain commercial linesmarket share dominance, but the market is in for some substantialshrinkage, and this could last for several years. Shrinkingreceipts, payrolls and business assets are all going to negativelyaffect commercial premiums and commissions, at least until thisworldwide economic mess manages to correct itself.

The potential for growth for agents and their companies lies inpersonal lines--where the market is huge but the independent agentsector only enjoys approximately 35 percent market share. Thatwon't grow without drastic changes.

Thirty or more years ago, independent agents began demandingmore efficiency within the personal lines universe, stating thatinefficiency was the source of the high expense ratios thatprevented independent agencies from successfully competing withdirect and captive writers. The playing field has now been leveled,and it's time for our side of the industry to capitalize on ouropportunity.

Today, using Web-based technology, clients can access theiraccounts as well as carrier and agency contacts. Information andmarketing links can be provided to employer-based clients as abeginning and as a follow-up to initial sales efforts.

Major technological progress has already been made and has beena huge factor in allowing the independent agency system to achieveefficiencies that have effectively overcome price advantages thatwere previously held by direct writing and captive agencycompanies.

Read AA&B's Web exclusive "Get to know the duck"on Aflac's successful outreach to independent producers.

AA&B: What are the best ways forindependent retail agents and brokers to compete with directwriters--especially when some of the best known personal linescompanies use multiple distribution channels?

Brooks: Nothing is better for agency personallines growth than the development of a large inventory ofexpiration dates provided by prospects in anticipation of aninsurance proposal from an agency that actually has asked for theirbusiness. The challenge is the development of that inventory.Without expiration date timing, not much is going to happen.

Independent agents need to start asking for the business: "Wehave great, competitive home and auto insurance products, and wewant your business! If you think you're paying too much for yourhome or auto insurance, call our agency and ask for one of ourpersonal insurance specialists. He or she will match one of ourseveral competitive insurance companies with your particularinsurance needs and may well do so at a lower price than you'recurrently paying!"

This may be somewhat of a culture change for many agents,producers and CSRs, whose idea of "protecting the client" overrides"selling the policy." "Total Account Protection" is the agencystandard that drives proactive communication with clients andprospects. Writing the total account has proven to increaserevenue, lower loss ratios, increase retention ratios and reduceexpenses.

AA&B: Are you targeting all personal linescoverages for growth? Which in particular, and why?

Brooks: Yes, we're targeting growth in alllines of coverage. And we're targeting customers, not policies.Obviously, auto insurance is the driver in increasing personallines volume, and all the other coverages follow that: home,earthquake, flood, hurricane, floaters, etc.

AA&B: How does social networking and theWeb play into the plan?

Brooks: We are putting out all of ourinformation on Twitter. We also have Facebook and LinkedIn pages,where we're posting good, relevant information all the time.

AA&B: Will your membership encompass bothagents and insurers? How many members do you have at launch, andwhat are your one-year growth goals?

Brooks: Within 24 hours of launch, we welcomed63 members and the count continues to increase as awareness of theAlliance grows. We encourage agents, insurers and otherindustry-related organizations to be part of our membership, so thesharing of ideas and resources can be most effective. Insurancecompanies are already asking how they can help.

AA&B: What tools will PLGA offer members tocompete in personal lines?

Brooks: Members will have access to relevantinformation, education and resources to take advantage ofopportunities for profitable growth by combining the efforts ofcarriers, vendors, associations and agencies in one convenientplace. They will be part of a network that will identifyopportunities, share successful strategies and develop newprograms--all designed to take advantage of the growth and profitpotential in the personal lines marketplace.

PLGA members will get:

• Relevant personal lines news and publications
• Recommendations on specific actions to take to help you takeadvantage of market share left on the table
• Access to workshops and training programs to assist indeveloping your personal lines initiatives
• A network of like-minded and focused professionals to share anddevelop ideas
• A support group of member carriers, associations, organizationsand vendors who share the same interest.

AA&B: Is there a fee or commissionstructure involved in membership?

Brooks: There is no cost associated withmembership for independent agents -- all other interested partiesare welcome to participate without fees until further notice. Ourgoal at this point is to gather the minds, engage in collaborationand demonstrate what success looks like: increased marketshare.

AA&B: What will be the main value deliveredto members?

Brooks: Our goal is to convince independentagents of the value and stability of personal lines insuranceproducts in today's insurance market, and how they contrast withthe commercial lines activities on which most of them rely fortheir agency's main revenue stream. We will demonstrate theretention qualities of a properly maintained and serviced book ofpersonal lines business, along with its potential of enhancingtheir agency's asset value. We'll also make independent agentsaware of their competitive position, with a plurality of companyrepresentation, versus "the old days," when direct writers andcaptive agency companies dominated insurance price issues.

PLGA will also provide independent agents with knowledge of theavailable choice of personal lines sales and marketing strategies,strategies to enhance customer relations; how with the currentlyavailable workflow efficiencies, agencies can provide prospects andclients with "the human contact factor," an important elementmissing from the marketing and service strategies of many directand captive agency writers.

We also plan to resurrect the entire insurance industry'sinterest in personal lines as a major source of financial growthand stability. Particularly, but constructively, challenge thecurrent perception of many independent agency owners and seniormanagers.