Reader letters

More training

I read with interest “Avoid the steamroller” (AA&B January 2011). As you correctly point out, providing the right training to new hires presents significant challenges for an agency. I was, however, disappointed it presented an incomplete picture of the professional development landscape for those entering the agent and broker business.

To effectively sell a product, an individual must possess detailed knowledge of his or her product, whether it is an automobile or an insurance policy. As Bill Wilson correctly pointed out in “40 Hours and I'm an Insurance Agent!” on AA&B's website (propertycasualty360.com), “Insurance policies are complex contracts…Many insurance practitioners lack the requisite skills and knowledge to fully understand much less explain the products they're selling.”

Agencies today are concerned about providing value in order to win new and retain existing clients. Professional development gives producers tools to explain products and assist clients with good risk management decisions. That's value that goes straight to the client's and the agency's bottom lines.

In-depth technical knowledge of the insurance product is not only good for business in terms of sales and commissions, those who possess such in-depth knowledge are less likely to disappoint their customers and face costly E&O claims.

To develop well-rounded and effective employees, it is important to supplement soft-skills training (like sales) with technical insurance education. Designation programs like CPCU or AAI can provide this vital technical foundation.

All an agency has to sell is the knowledge of its people. Without strong technical knowledge, it is difficult to bring the value clients expect and continually meet agency strategic goals. Professional development provides the competitive edge every agency needs.
Anita Z. Bourke
Executive vice president, The Institutes

Faulty fraud?
Barry Zalma's article “Expensive to defraud the U.S.” (AA&B January 2011) confused me. Unless the agent had knowledge of what was going on by the farmers, he had no culpability or liability in the matter. It just appears to be another case of an overzealous federal prosecutor trying to make a name for him or herself without doing any fact checking.
Dale Pettine
Delphi, Ind.

Zalma response: That's what the case was about—apparently the agent got in trouble because he knew what was going on. You will note that the agent lost in the trial court, had the case reversed for further evidence in the appellate court, and we don't know how that case came out. The people he insured, however, admitted they had no insurable interest in the crop he insured. I am unable to see from an appellate decision whether the prosecutor was overzealous but assume he or she was not since they proved their case at trial. Also note that the court sent it back to determine if the agent knew the false applications would be going to a government agency.

An Agent Gets His Wings
I really enjoyed Chris Amrhein's article “It's a wonderful policy” (AA&B December 2010). It really puts into perspective what we do every day as agents and brokers. Sometimes we forget what we are actually doing for our clients.
Mark DePeters, CPCU
Buffalo, N.Y.

Chris, you've outdone yourself with the “It's a Wonderful Policy” article. I think I will frame the column on my wall where I can remind myself why what we do is so vital to the successful flow of American business.
Judy Rapp
Spokane, Wash