Agency Owners Counseled On Leading Young Agents

WASHINGTON–Insurance agency owners need to improve communication to address a gap between their aims and those of young agents that work for them, an agency trade group leader advised here today.

Bob Fulwider, chairman of the Insurance Agents & Brokers of America, gave that counsel at his group's Legislative Conference and Convention during a leadership panel discussion.

He said the expectations of principals and young agents are not aligned and need to be addressed in order for both agency and company growth expectations to be met.

At a breakfast meeting for the IIABA Young Agents group, Mr. Fulwider asked how many young agents in attendance were more concerned about sales than agency operations. Most raised their hands to signal sales were their concern.

“Look around, principals. I think there's a real disconnect here that still exists among us in the independent agency system. Many of our young agents are trying to establish [themselves] and make a living,” Mr. Fulwider said. “And we all have to realize that is their primary interest; that, 'I want a check at the end of the week and I want it for a job well done.'”

“Our job as principals in the agency operations system then is to assist in what you folks on this stage are saying is important to you for young agents,” he continued, referring to the four company senior executives appearing with him.

“Now, I'm not saying we need to baby-sit them, but what I am saying is that there are a lot of things we as principals are neglecting with our young agency operation,” Mr. Fulwider added.

To emphasize his point about disconnect between principals and young agents, he asked how many young agents have had a heart-to-heart talk with their principal owners in the last 90 days. Only a few signaled they had.

“It's a disconnect, but it's not intentional,” he observed.

He said what principals need to do is think “through the process about what is going to be best for the agency in the long run.” In turn, that delivers on the customer's expectation, helping to increase sales, which is what the insurance companies want to see, and “makes them happy because we are producing.”

Joining Mr. Fulwider were Cynthia Hardy Young, president of Encompass Insurance; John A. Barbagallo, president, commercial lines group, Progressive; Michael L. Browne, president and chief executive officer of Harleysville Insurance; and Neal S. Wolin, president and chief operating officer, property and casualty operations, The Hartford.

The executives said they seek to partner with agents who know insurance, their customers and the technical ends of the business, including technology.

Ms. Young talked about how insurance is the “oxygen” of industry and how that opens up many opportunities for the independent agent community.

Mr. Browne said what is important is deep, strong relationships that form a strong partnership between the agent and company.

Young agents will need to address an industry that is going through constant transformation, noted Mr. Wolin.

He said changes will be taking place at an increasing rate in the future, and one of the objectives for young agents will be to get ahead of these shifts and recognize future opportunities.

The traditional approach to prospecting for clients, noted Mr. Barbagallo, is undergoing significant alteration.

In the past they were secured through referrals and going through the Yellow Book pages. Today, more and more business is coming through the Internet, he noted. Mr. Barbagallo said there will be a growing need on the part of agents to align their Web sites with these interests, making them interactive and reachable by the major search engines.

He said this is one major area that independent agents are in danger of yielding to captive agents, and should not, because of the quality of service and choice they have to offer customers.