Big ‘I’ Fields Busy Agenda at Annual Meeting in Big Apple

The Independent Insurance Agents and Brokers of America will convene in New York City this month for their annual national convention, Sept. 10-12. Just as agents and brokers prepare to discuss the challenges of mergers and acquisition strategies, marketing and sales techniques, ethical and best practices for organizations, and of course, how-to steps to improve the agency’s bottom line, outgoing IIABA President Tom Grau, and President-elect William (Bill) Stiglitz sat down with Insurance Journal to discuss the association and its members.

Insurance Journal: Talk a little bit about this past year as president of the Big “I” and what you see as accomplishments.

Tom Grau: Survival is an accomplishment! This year deviated a lot from what I expected, primarily because of the (Eliot) Spitzer investigation and its aftermath, but we made great strides in the areas I had originally focused on.

Primarily, we made tremendous strides in the Trusted Choice brand initiative. We now have more than 5,100 agency locations, and 31 company partners. Our state associations are actively engaged in Trusted Choice, and our progress this year is a great sign of what’s to come in the future.

Second, I’m delighted with the work the Agents Council for Technology (ACT) has done this year, and think the progress that has been made is so important to the future of the independent agency system. ACT has such a strong vision for the future of agency technology, and it’s only going to get stronger in the coming years.

Third, we worked very hard to reinvigorate our technical affairs committee. We worked to re-establish the unique identity of the committee, and worked to bring a strong national presence to regional conferences to indicate the importance of the committee. I know this is of critical importance to membership, and believe we’re making a lot of progress with technical affairs.

Of course, the first six months as president I dealt with the producer-compensation situation. We worked to manage the backlash from Mr. Spitzer’s inquiries. The successful handling of this situation is an accomplishment that will mark this year. The leadership and staff of the national and state association offices really handled it so well.

A threat to our system of incentive compensation, actually to our entire compensation system, arose, and it was totally unacceptable. The association rose to defend our business practices and proved that our model of compensation is working well. There has been minimal effect on our business practices, and all I can say after this year is we’re still here and we’re still doing business! Membership continues to grow, and I’m extremely proud of that.

IJ: How do you see the overall health of the property/casualty industry and what challenges are independent agents facing today?

Grau: There are many challenges facing independent agents today, but I see two big ones. First, capital formation-there are fewer insurance markets. As the availability of markets continues to shrink, that’s less opportunity for independent agents.

Secondly, I do worry about the future impact changes in regulation could have. The next 12 to 18 months will be very telling as the implications on the national and the state level become more clear.

IJ: What can we expect from the September conference?

Grau: The Big “I” Convention offers the opportunity for agents and brokers to come together and network.

It’s infinitely important to meet and talk to other agents, hear their experiences, and advice. The Best Practices Management Institute was so popular last year, and this year we’ll be offering many great workshops. Former Mayor (Rudy) Giuliani’s remarks at our closing session will be fascinating. It’s a great experience to hear one of the world’s foremost experts on risk management address our association and speak to our concerns. And, of course, my farewell address will be worth the price of admission alone!

IJ: As Bill (Stiglitz) prepares to assume the president’s role, any advice for him?

Grau: The only thing I want to say to Bill is – have a dream, and be prepared for changes. As leader of this team, the national staff and volunteer leaders really work with you to support you and help you succeed.

IJ: What are your goals in the role of president over the next year and what do you see as challenges?

Bill Stiglitz: My goals are to increase participation in Trusted Choice by 2,000 agency locations. I want to retain and grow our membership through “The Voice of Independent Agents” program. I want to continue the excellent financial condition of IIABA and its state affiliates. I would like to see TRIA renewed during my term and the SMART Act advance through Congress. I want more of our members to avail themselves of the wonderful work of the ACT.

Challenges are the continuing stress put on agents and brokers by the Spitzer investigations; the rush by some of our companies and organizations to embrace an optional federal charter; the aggressive marketing and branding campaigns of direct writers.

IJ: How do you see the overall health of the P/C industry?

Stiglitz: I believe the P/C industry is extremely healthy, having turned the first underwriting profit in 2004 in many years. I fear that companies will not be able to sustain underwriting profits and that cut-throat, unreasonable pricing may return to the marketplace. We are already seeing considerable softening in the market. Agents face challenges investing in and using technology. ACT is available to help agents in their IT decision making and processes.

Agents also must begin to perpetuate and grow their agencies for the future. Insurbanc and IIABA retirement programs can help them in their planning.

Topics Agencies Market Property Casualty