How to Compete for Personal Lines with the Direct Writers

Every independent agent either asks this question constantly or has given up trying, but according to a recent article by Alan Shulman, CPCU, publisher of Agency Ideas, that appears on the Insurance Journal website, “The path to successfully competing with the direct writers requires a basic understanding of their marketing prowess, including when to emulate it and when to differentiate from it.” 

The first step he advises is to be entertaining. “Creative promotional approaches for independents include imaginary resources such as amusing insurance advice columns, humorous coverage knowledge quizzes, transcripts of imaginary conversations, 'fake' blogs and more.” A key point Shulman brings up is to use multiple channels both digital and traditional. It’s not either/or, it’s and/both.

Other areas he discusses are how to develop your website to attract attention and drive traffic; the idea of being social and coordinating your messages across multiple platforms. Despite what you may think, Shulman believes independent agents should “talk savings.”

“You too can use price as a hook. Just don’t get lost in the ‘you can save up to $XXX’ shuffle. Instead, dazzle your prospects with the variety of discounts that you offer. Hook shoppers by distributing lists of the discount that you commonly provide (one list per policy type).”

Shulman offers a lot of great advice on competing with direct writers from a different perspective than, perhaps you’ve thought of before. Read the full article here - http://www.insurancejournal.com/magazines/features/2011/11/21/224843.htm.

How Technology & Service Drive Carrier Choice in Personal Lines 

In personal lines, the market share direct writers’ owns continues to grow. According to the Insurance Information Institute, direct writers accounted for 70.5% of net premiums written in 2009 with independent agencies writing only 29.3%.

As the continuing soft market and weak economy takes its toll on the commercial lines market, personal lines is counted on more heavily by independent agents to maintain a steady and strong contribution to their bottom line. For personal lines carriers, positioning themselves as “easy to do business with” is very important to strengthen their agency relationships and attract a greater share of agency-placed business. More than ever, how and what technology a carrier implements can be a deciding factor for agents when placing that business.

A recent survey conducted by Novarica and the Personal Lines Growth Alliance (PLGA) asked agency personnel (principals, producers and CSRs) what technologies and services best describe their top three carriers.

Among the key findings, speed of policy delivery, speed of underwriting decision, convenience and claims services are the capabilities most likely to make a carrier the agents’ top choice. While an underwriter relationship is important, other factors can overcome a less than perfect relationship.

Agent portals, real time functionality and comparative raters are among other key findings with degrees of importance varying depending on the perspective – principal, producer or CSR.

If you’re interested in hearing more about the study, you can listen to a podcast between Karlyn Carnahan, insurance principal with Novarica and Rick Gilman, executive director, PLGA. (http://bit.ly/uvk7B5)

Novarica and PLGA will be co-hosting a webinar on Thursday, December 8, 2011 at 2:00 PM ET. If you’d like to register for it, follow the link. https://www1.gotomeeting.com/register/786111953 

Register Now. Space is limited.

Chapter Growth and Participation Reach All Time High

According to Chapter Relations Coordinator Sara Krueger, so far this year NetVU has seen an increase of 52% in Chapter meetings, an addition of 17 new Chapters bringing the total up to 55 groups, and a growth of 50% in attendance at Chapter events.  In addition, Sara has 13 more Chapter meetings scheduled through the end of the year. This reflects a renewed emphasis on targeting education and networking at the local level.

The always popular and extremely valuable Angela Adams spoke at a number of events in regions that either didn’t have a Chapter, or had a Chapter that needed a “shot in the arm” to re-invigorate it. And it worked – new Chapters developed and others became active again.

As a sign of the times and economy, virtual meetings and Chapters themselves, started up. Specifically, three new Chapters were created solely as virtual organizations. Several other traditional Chapters added virtual meetings to their roster of event, all of which proved very successful.

Lisa H. Harrington, CPCU, CAE, AAM, AAI, AIAM, AIP, vice president & COO, NetVU, said, “This has been an amazing year for Chapters and it’s not over yet. This growth is due to hard work by the Chapter leaders themselves in conjunction with the NetVU staff. We fully expect to see these numbers continue to climb.”

Clearly, active Chapters are very important to NetVU members. They bring unique education and networking opportunities to members. If you already belong to your local Chapter, be sure to attend the meetings. If you don’t belong or don’t have one near enough, let national know. We can help get one off the ground. Contact Sara Krueger at sara@netvu.org for more information about your local Chapter or how to start one.

Trustworthiness Key Factor in Selecting Insurance Agents Survey Finds

A recent survey of small business owners conducted by The Pert Group and sponsored by Hanover Insurance shows that independent agents are the most trusted of financial services firms by small business owners.

Trustworthiness (86%) topped the list of important factors small business owners looked for from their property insurance agents. Competitive Pricing (82%), Responsiveness (81%), and Value (79%) followed close behind.

A majority of the small business owners surveyed found their insurance agents to be trustworthy – the highest percentage of any of the types of financial services firm identified: 48% more than banks, 97% more than healthcare companies, and 295% more than stock brokers.

In addition, the survey respondents indicated a trust of P&C carriers 25% more than banks, 66% more than healthcare companies and 150% more than stockbrokers.

This study was conducted by The Pert Group, an independent consulting and research firm with broad experience in financial services industries. Results for this survey are based on online interviews conducted September 14-23, 2011, among 501 small business owners with less than 30 employees, who were the principal or primary decision makers regarding insurance coverage.

2012 NetVU Conference Registrations Soaring 

Registrations for the 2012 NetVU Conference in Anaheim, CA, April 26-28 are through the roof. With a 16% increase in registrations over this time last year, the excitement around the conference is reflective of a terrific program, top-notch education and a great location.

As the holidays are just around the corner and everyone’s thinking of vacation, don’t let the opportunity slip by to register during your 2011 budget year.  Now’s the time to act; visit the conference page (www.netvu.org/12NC) and register. Remember, there’s a place for U at NetVU!