The new president of the Independent Insurance Agents & Brokers of America said he believes the best side of the insurance industry can be displayed in its handling of Hurricane Katrina claims.
"The recent events in Louisiana, Mississippi and Alabama present an incredible opportunity for our industry and our members to show the world that insurance can respond in a fair and rapid manner," said William G. Stiglitz III, IIABA's 101st president.
An account executive with the firm of Hyland, Block & Hyland Inc. in Louisville, Ky., Mr. Stiglitz was sworn in as president of the association Monday night during IIABA's closing session of its annual conference held in New York.
"Business income and property losses will reach historic highs as a result of this storm," he continued. "I ask our companies to respond with compassion and fulfill the promises that have been made to our policyholders."
He said IIABA agents have responded with skill and compassion to those policyholders who need their help, and called the action of those agents whose offices were lost in the storm "heroic."
"We cannot allow our industry to be criticized for lack of response and fairness during this crisis," he said. "Let us all, agents and companies, seize this opportunity to prove that we are worthy of our customer's trust."
Mr. Stiglitz said the taint on the insurance industry cast by investigations into contingency fees and debates over regulation mean the association must have an effective government affairs operation. He said it was essential for agents to support InsurPac, the association's political action committee, to defend agent's interests in the future.
He also noted the necessity for the agency system to brand itself, adding that the major difference between captive and independent agents is a brand. He urged more agents to join the association's branding initiative, Trusted Choice, and said his goal is to have 6,000 agency locations as members of the brand by the end of his one-year term.
In farewell remarks on Sunday, Tom Grau, now past-president, noted that a number of unexpected events have challenged the association over the past year during his tenure.
He said that shortly after his election, New York Attorney General Eliot Spitzer sued Marsh & McLennan Companies, setting off a national scandal over the bid-rigging of insurance contracts and brokers taking kickbacks to steer business.
"We battled the misconception that our compensation system was the problem and put the focus squarely on those who had broken the law and betrayed their customer's trust," he said. Since then, the call for ending contingent fees has died down, he added.
During the past year, Trusted Choice has grown to over 5,000 member agencies and continues to grow, ahead of schedule, he said.
Advancements on the technology front continue, he said, noting that progress on this front is being made with the aid of the Agents Council for Technology.
IIABA remains the voice for independent agents, he said, observing President Bush's address at the association's National Legislative Conference where he delivered a major policy address.
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