PIANJ President Defends Contingents

Jack Lynn, the newly elected president of the Professional Insurance Agents of New Jersey, has issued a statement defending agents' contingent commission fees.

Mr. Lynn, a partner and vice president of the Dalton Insurance Agency in Glassboro, N.J., was installed as president of the association this week during the organization's PIANJ and PIA New York joint annual conference in Atlantic City, N.J.

In a statement, Mr. Lynn said “PIA believes that the possibility of earning incentive income–call it profit sharing, contingent commissions, or whatever–is traditional. More important, it is legal and a reward for excellence.”

He said PIA is well represented and has a unique grasp of the compensation and disclosure issues facing independent agents, especially with Kenneth Auerbach in the positions of PIANJ National Director and PIA National Treasurer/Secretary.

Mr. Lynn said agents need to realize the importance of embracing real-time technology (the ability to enter multiple carrier sites with a single sign-on through their agency management system) and continuing education to ensure personal development and industry professionalism.

He said it is important for producers to recruit new blood into their agencies and be attentive to the role of women in the insurance industry. He also urged agents to stay attuned to changes in the sales process and new ways to grow their business.

As president, Mr. Lynn promised vigilance on several issues of concern to New Jersey's independent agents. Among them, “to always be aware that agents' ownership of expirations is of paramount importance to us all” and “to protect agent income.”

“The changing auto insurance situation in New Jersey and the influx of new competitors has impacted our agency incomes,” Mr. Lynn said. “Those agencies that have endured and prospered in the aftermath have two common denominators: one, an ongoing sales process and, two, alternative revenue streams, such as life, group and financial services.”

He also encouraged insurers to stay on top of the industry with regard to innovation. “Give us a gimmick,” he urged. “A coverage wrinkle that you know the competition does not have. As your distribution method of choice we will have a combined, unfair advantage, if you will.”