NU Online News Service, April 5, 12:38 p.m. EDT

Independent agents continue to lose personal lines market share to direct writers, and combating that means conveying to customers the unique abilities producers bring to the table, says the chairman of the Independent Insurance Agents & Brokers of America.

Mike Miley, client executive for the independent agency Gibson based in South Bend, Ind., and chairman of the IIABA, points out that there is $280 billion in annual premium in the personal lines marketplace. Independent agents now have 32 percent of that market but are losing their share at a rate of 1 percent a year. That translates into a loss of $2.8 billion in premium, which equates to $300 million in lost commissions to independent agents.

“We’re going to try to turn that around with an online presence,” says Miley, referring to a new website, sponsored by the IIABA’s independent agent brand Trusted Choice, aimed at drawing customers searching for personal lines insurance to independent agents.

In 2009, 73 percent of consumers purchasing a personal lines product started with a search online. They didn’t buy online, just researched before they went out to buy, he notes.

Many independent agents today simply don’t have the kind of profile to put them at the top of the search engine, Miley points out. To change that reality, the IIABA plans to push the Trusted Choice brand along with an online program aimed at boosting independent agents’ profile as a group.

For IIABA members, this means they will be seeing a few changes, Miley says.

Trusted Choice, the IIABA’s independent agent marketing campaign, has been going for 10 years, and until now it has been a voluntary program. This year, all members of the IIABA will become members of Trusted Choice. In September, the members will receive updated marketing materials and there will be a push from state associations to “get the word out” about the program.

“We are real excited about this,” Miley says.

The logo of the IIABA will remain because it resonates within the industry. However, for consumers it is a symbol of small markets, says Miley. Trusted Choice, on the other hand, underscores the two factors in consumers’ minds when making a purchase: trust in the purchase they make, and the ability to choose who they do business with.

“It really demonstrates what we do,” observes Miley.

With that brand, agents will soon see an effective leads generator with the launch of CAP—consumer agent portal, Miley says.

Still in development, CAP is intended to be a new portal for consumers searching for personal lines insurance. Its intent is twofold: It will place independent agents further up in the search engine results, and it will generate customer leads for independent agents, creating a new avenue for expanding their book of business.

Both agents and their carrier partners will benefit from access to new customers, but there will be a fee to agents for the lead generation, Miley says.

Miley notes that with improvements in search, agents will need to overcome the hurdle of Internet marketing. That means those that still have static websites will need to make them more interactive. They will also need to utilize social media, such as Facebook and Twitter, to promote their agency.

CAP is expected to be launched during the fourth quarter of this year or first quarter next year, Miley says.

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IIABA Chair Seeks To Push Brand To Compete With Direct Writers

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