PIA Western Group To Combat New Business Slump
By Matt Brady
NU Online News Service, Oct. 14, 3:16 p.m. EDT?With a survey showing that 75 percent of independent agents are seeing a decline in new business, independent agents in nine Western states have formed an alliance to combine their strength and better support their businesses.[@@]
The new organization, called the PIA Western Alliance, is comprised of the state affiliates of the National Association of Professional Insurance Agents in California, Arizona, Nevada, New Mexico, Oregon, Washington, Idaho, Montana and Alaska.
"For more than a century, independent insurance agents have served as a vital lifeline for community insurance needs," said Terry Adams, national PIA president and owner of Reinholdt Adams Insurance in Ashland, Ore.
Mr. Adams noted that it is "more challenging than ever in today's marketplace. By uniting the products, services and marketing efforts of all of PIA's individual state affiliates in the West, we ensure the greatest purchasing power, leverage and expanded offerings to benefit all PIA members in all nine states."
In recent years the market for independent agents has grown increasingly difficult, with large agencies being created by mergers and the increasing trend of insurers dealing directly with customers, PIA said.
The organization said the current situation has created a challenge for independent agents to maintain access to enough products and carriers to meet customer demands.
Insurers, PIA said, often require an agent to sell a certain volume of coverage or risk losing access to the company's products. The problem for independent agents under this system was highlighted by a PIA survey conducted before the formation of the Western alliance in which 75 percent of respondents said they were experiencing a decline in new business and 40 percent believed the trend was worsening.
In the Alliance, members will have access to various products from a number of different carriers, including The Hartford, Safeco, AIG, Utica National and CNA, and will not have to meet any minimum sales requirements.
The PIA Western Alliance will also offer members educational services to help ensure agents maintain their licenses and can obtain licenses in other states, keep members abreast of government affairs and regulatory requirements, and provide services aimed at agency principals, including errors and omissions coverage for agents as well as succession planning and agency buy-sell services.
"Hometown, 'Main Street' agents face greater competition than ever before," said Clark Sitzes, executive director of the PIA Western Alliance. "Now they can offer their customers the range of products and services found in much bigger agencies, delivered with their traditional personal touch."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.