The Value of Belonging

Insurance producers are a busy group, with day-to-day operations that include writing new business, servicing existing policies, taking care of employment issues, etc. Often, there is a myriad of factors—seemingly outside of a producer’s control and things of which the average producer is not even aware—that influence him or her. Fortunately, producers can rely on associations to be their eyes and ears on the important issues of the day.

The American Agents Alliance is following a number of insurance-related bills this year, some we are just watching, while others we are actively supporting through testimony in committee hearings and support letter campaigns. Other associations exercise their own interests in this and various bills. With few exceptions, each individual insurance producer cannot take time out from his or her work to sift through the hundreds of bills introduced each year, decide what to follow, how closely and then track the progress through the Legislature. That’s why there are organizations, such as the Alliance, that handle these important tasks.

One of the most expedient ways for individuals to have their opinions heard is through their associations. Legislators, as well as Department of Insurance officials, frequently seek out associations when dealing with legislation and regulations impacting their members. The Alliance, much like other producer organizations, often polls members for their thoughts on a particular issue, then shares this information with the appropriate people. For example, we recently conducted a poll regarding the Low Cost Automobile Insurance program, something that is being scrutinized in Sacramento. Through our survey, we were able to gain an understanding of the perceived positives and negatives from front-line producers, something we will be forwarding to the Legislature and Insurance Commissioner. There is no better method of communicating individual thoughts and opinions on any issue than through an association.

On the flip side, new laws and regulations affecting the insurance industry are enacted very frequently. Producers are being asked for even more documentation, to pass along mandated information to their customers and to institute procedures to protect customer information. Associations have full-time staffers who make sure their members are well informed about the latest rules and regulations. No individual producer can expect to follow and comprehend the avalanche of mandates required to be part of their business operations.

Not only do associations provide members with an understanding of a dynamic regulatory landscape, they provide tools to ensure compliance. For example, Alliance members have access to several documents and forms relating to the privacy regulation via our members-only Web site (www.agentsalliance.com). If every individual producer had this complicated set of mandates interpreted, then paid for the attendant forms and business procedures to be drawn up, the legal community would be blessed with a significant financial infusion. But because of their membership, these steps were unnecessary.

Members can also look to associations for advice on dealing with insurer-related issues, such as questions about contracts, are proper procedures are being followed, etc. Associations also act as advocates for their members, intervening when they feel that producers are being treated unfairly by carriers, general agents, regulators or other entities with whom they deal in their business lives.

The poet John Donne wrote, “No man is an island.” Sometimes, however, producers may feel like they are, especially in smaller agencies. But through member meetings and annual conventions, associations offer opportunities for networking and comparing notes on what is going on in the industry. This September, the Alliance will host our annual Conference & Expo, where among other things, participants will meet with old friends, make new ones and chat with company representatives about what’s new on the horizon. Our monthly meetings, which frequently feature guest speakers and CE seminars, offer current and prospective members a venue for frank discussions on business issues, and a realization that they are not alone.

Because associations are primarily member-driven, their strength and success is directly related to active member participation. Those who join and do nothing other than pay their dues are robbing themselves and their association of important value. To truly be a viable force, it must be well known that members of a particular association will not stand idly by while changes are made in their industry. Yes, there is strength in numbers, but only if people stand together. In this case, it’s better to join the crowd.

Don Lukenbill has been the communications director for the American Agents Alliance since 1995, and has worked in the nonprofit advocacy community since 1987. Contributing to this article were American Agents Alliance Executive Director Lorelle Kitzmiller, Edward Levy, Esq. of Edward Levy Government Relations, and Alan Frederick, Esq. of the Law Offices of Marrone, Robinson, Foster and Frederick.

Topics Legislation Agencies