Strategic Partnership Helps CIC Agents With Finding Markets

One of the worlds most dominant insurers, an e-commerce portal and an insurance educator are utilizing their respective standing within the insurance industry to offer independent agents preferential treatment in a sometimes difficult market to access.

Using its well establish e-commerce technology, Dallas-based MarketScout has teamed up with New York City-based insurer AIG and the National Alliance for Insurance Education and Research to offer Certified Insurance Counselors unique access to AIG through “CICSelect” (www.cicselect.com).

The alliance, say executives from MarketScout and the Austin, Texas-based National Alliance, which runs the CIC program, is a benefit to all three.

AIG, explained Richard Kerr, chairman and chief executive officer of MarketScout, is gaining access to markets outside of its normal major broker portfolio, and MarketScout is adding another avenue for agents seeking solutions to their clients coverage need. Agents who have obtained the CIC designation get the opportunity to access AIGs markets for their clients through a streamlined service, said Dr. William Hold, president and co-founder of the National Alliance.

“This is groundbreaking,” observed Mr. Hold.

“AIG is not always easy to communicate with, although they write a big book of business. Their penchant is to write with larger brokers and high books of business. They would admit that they are not really geared to [small- and mid-size agencies],” Mr. Hold pointed out, adding that this is the first time an insurer has given such exclusive access to agents with a specific educational designation.

AIG, said Mr. Kerr, was looking “for a better distribution system into the independent agency force.” The company reasoned that there are agents out there producing good business but who do not have contacts with AIG, and it is business that AIG would have an interest in, he said. After some discussions, the three decided to form this strategic partnership offering exclusive, easy access to AIGs products to the 60,000 insurance professionals in the CIC program.

MarketScout administers the “CICSelect” Web site that allows these agents to obtain quotes for almost all of AIGs offerings. The exception is for some personal lines and life and health insurance coverage, said Mr. Kerr.

The process for the producer is that after he or she submits business through the “CICSelect” Web site, MarketScout representatives pre-underwrite the account before forwarding it to AIG for a quote, explained Mr. Kerr. How quickly the agent gets the quote back depends on the business, he continued. It can range from four hours for a submission for workers compensation, to 30 days for more complicated business. All notification is done by e-mail, including receipt of certificates (hard copies can be sent if the agent desires).

The major advantage, Mr. Kerr noted, is that in such a difficult market as exists today, the agents business “receives immediate recognition” from AIG, and relatively quick solution, at the same commission rate as if they had gone through traditional channels.

Mr. Hold also explained that this relationship allows agents with clients who own a growing business the opportunity to place the account with a carrier geared toward large accounts when their traditional contacts fail them.

“We are concerned with making the CIC agent as competitive as they can be,” Mr. Hold said. “There is nothing more frustrating than for an agent to be working with an account, watching it grow and grow, and then losing it because he does not have the markets to serve that account.”

For the National Alliance, the partnership brings additional value to the CIC designation, but no income to the organization, said Mr. Hold. It does, however, help promote the CIC program, he noted.

“This is an interesting way to communicate with a large group and not be worried with each agent individually.” Mr. Hold observed.

Several calls to AIG for comment from a representative were not returned.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, July 22, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.

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Strategic Partnership Helps CIC Agents With Finding Markets

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