Reaching new heights thanks to Member Agent Panels
Special thanks to those who volunteered in 2009-2010
Twice a year they gather. They catch up over breakfast or lunch, and then they get down to business – talking industry issues and trends, sharing struggles and accomplishments, and driving their association forward.
Welcome to IA&B’s Member Agent Panels.
Member Agent Panels, best known by their acronym MAPs, meet in 13 locations across the tri-state region. IA&B members – most often agency principals and producers – serve two-year terms, during which they weigh in and provide direction on the association’s activities.
Since the inaugural meetings in 2003, MAP participants have had a significant impact on IA&B’s initiatives. (Note: While Delaware MAPs began in 2009, attendees already have provided great input – particularly in directing the state association’s public affairs committee.) The following pages highlight 10 of the many association accomplishments that stemmed from MAPs. As you’ll notice, even those initiatives that began in one state often benefited IA&B members across the tri-state region.
Read on to (re)discover member resources, familiarize yourself with how your association works for you and learn how MAPs operate.
Insolvency
The year was 2003. On the heels of the White Hall Mutual liquidation, Pennsylvania MAP participants vented about monitoring their carriers’ solvency. They felt unprepared and unwarned.
IA&B responded with an extensive Q&A resource, covering everything from how to handle notices and commissions to refunds and deadlines.
When the next big insolvency drama occurred with Vesta/Shelby, members were prepared – and appreciative.
Thanks to a struggling economy and lingering soft market, the issue reared its ugly head again in 2010. Rating services downgraded carriers, and MAP attendees questioned when, if and how to notify their clients.
IA&B responded with two sample client-notification letters along with instructions for keeping E&O carriers, and clients, happy.
Review client-notification resources:
De facto termination
IA&B of Pennsylvania MAP attendees first expressed concern about commission cuts and their downward-spiral effect on agency contracts in early 2004.
The Pennsylvania Insurance Department did not recognize de facto terminations – the reduction or elimination of commissions in an effort to force out an agency. In response, MAP attendees suggested amendments to Act 143, the state’s agency-termination statute.
IA&B carefully crafted a position that addressed MAP participants’ concerns: not coming across greedy, yet educating agents on their rights.
This issue regained the spotlight as well. In 2009 a carrier eliminated an IA&B member’s commissions without offering Act 143 protections, including a one-year rehabilitation or run-off period.
IA&B represented the agency and won: For the first time the Pennsylvania Insurance Department recognized the concept of de facto terminations.
Accident reports
Proving that IA&B takes concerns of all sizes to heart, in 2004 the association worked with the Pennsylvania Chiefs of Police Association, the Pennsylvania Fraternal Order of Police and the State Police to address traffic accident reports.
A MAP participant expressed concern with police failing to share the reports. If the insured did not take a copy of the report before leaving the accident scene and then provide it to the agent, police refused to provide a copy, calling it private information. This, in turn, severely slowed down the process of filing a claim.
IA&B drafted an op ed article, published in the Fraternal Order of Police magazine, to explain why an insurance agent needs immediate access to accident reports.
Privacy
It was no surprise in 2005 when MAP attendees shared their confusion about privacy compliance. IA&B responded with an Agent Issues e-mail series that walked members through its compliance resources.
Later, during 2010 MAP meetings, participants shared their concerns over expanding privacy regulations. Growing obligations under HIPAA and the HITECH Act intertwined with already cumbersome requirements. So IA&B responded with a revamped privacy resource, beginning with an audit and walking members down the (many) paths to complete compliance.
Access privacy resources:
Strategic direction
During the fall 2006 MAP meetings, IA&B charged participants with charting the association’s path for the following 18-24 months. Attendees identified critical initiatives and brainstormed key projects.
Generally, members identified technology, perpetuation and human resources as areas of concern. Members shared their frustration about spending time on agency management and operations rather than selling and growing their business.
The IA&B boards of directors took the message to heart and steered product, program and resource-development toward those MAP-identified needs. Examples include executive management conferences on perpetuation and technology and a suite of human resources products (HR Solution©).
Access or register for HR Solution (This resource is available only to individuals designated as "Agency Administrators.")
Loan to value
IA&B of Pennsylvania members first expressed concern about lenders requiring full loan value instead of replacement cost at the spring 2007 MAP meetings.
IA&B responded with legislative advocacy, and in July 2008 Gov. Rendell signed The Mortgage Property Insurance Coverage Act into law. The legislation prohibits mortgage lenders from requiring borrowers to insure their property in excess of the value of structures on the land.
The law was a win for homeowners – and their agents who often found themselves stuck between a lender’s demands and an insured’s actual needs.
Producer agreements
MAP participants, along with other IA&B members, expressed concerns about entering into proper agreements with their producers. By late 2008 the trend was clear: Members would contact IA&B after an employee would leave the agency, possibly with proprietary information.
IA&B responded by updating its resource. The revised information covers:
- Trade secrets, non-compete and non-piracy
- E&O considerations for independent contractors
- How geographic area relates to non-compete language
- Considerations for implementing agreements with existing employees
- How contracts can supersede law
Based on member feedback, the organization revised the toolkit once again in late 2009.
Review producer agreement toolkit (This resource is available only to individuals designated as "Agency Administrators.")
Fiduciary duties
News regarding AIG’s government bailout broke in fall 2008, so it was no surprise that MAP discussion turned to carrier solvency, FDIC protection and fiduciary accounts.
After the MAP meetings, IA&B developed a three-part resource that explains agencies’ fiduciary duties and offers advice for account set-up and maintenance. During the spring 2009 meetings, MAP attendees reviewed and offered feedback to refine the resource.
Review fiduciary duties resources
Agency newsletters
While independent agencies struggled with the soft market, direct writers increased their competition, spending huge sums on advertising. MAP participants expressed their need for a communication vehicle to enhance and promote their value to customers and prospects.
IA&B researched various vendors and partnered with Foresight Publishing, specialists in insurance marketing communications, to offer members discounted access to an e-newsletter service.
The service boasts simple set-up and mailing-list management, customizable templates, real-time reporting and availability of professionally written articles.
Learn more about e-newsletter service
Technology
During the spring 2009 MAPs, IA&B learned that only a handful of members used social-networking tools as a business strategy while many had interest. The organization also identified a similar trend with going paperless: Members wanted to get there but needed help.
In response, IA&B dedicated its second annual executive management conference to technology. Industry experts presented workshops on social networking, electronic document management, agency management systems and client data security.
IA&B also launched its own LinkedIn and Twitter accounts to interact with agents in a new medium and, in some cases, lead the way in Web 2.0.
Parting thoughts
Margaret Mead said, “Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has.”
Those words reflect MAPs well. It is a group of thoughtful, committed members who are changing their agency, their association and the independent agency for the better – one meeting and one brainstorm at a time.
Learn more about MAPs and get involved!