PIANY’s MetroRAP Brooklyn

New York City’s producer community came back to Brooklyn for the Professional Insurance Agents of New York State Inc.’s 2015 Metropolitan Regional Awareness Program, held Thursday, Jan. 29, 2015, at the Brooklyn Marriott.

MetroRAP, PIANY’s first net- working event of the year, has become the place to be seen. This year’s event was a smashing success, with some 500 professionals turning out to network, learn and recognize excellence. The famously well-attended show features education and conversation about challenges and opportunities our industry faces today and in the future.

“MetroRAP is PIANY’s first major networking and education event of 2015—and we are always pleased to start the year with great
success thanks to the participation of so many professionals,” said MetroRAP Chair Dina Bruno. “This become an ‘insurance professional.’ “This year has been particularly dynamic with greater use and access to social media, live tweets posted on the big screen in the trade show and even enjoying a visit from CNN… We’re growing and getting better every year.”

The event continued even after the trade show and education was over with a networking reception hosted by New York Young Insurance Professionals. Recognizing industry superstars

PIANY presented Kevin Davis, president of Kevin Davis Insurance Services Inc., with the MetroRAP 2015 Industry Professional of the Year award during the luncheon ceremony. Davis, who began his career in 2000, told the audience that he had “Zero accounts,” when he started out, and has since built an agency with $30 mil- lion in policies and $65 million in premium, specializing in New York City busi- ness. “I was raised in Camden, N.J., in the 1960s,” he said. “I’m asked how I did it all the time—how I became successful. I learned to ask for help, I had a desire to be successful and I was disciplined.

“First, I had a good structure. I learned persistence from my mom. She had six kids and she told us she wanted six doc- tors. She taught us discipline; every night, we had homework or quiet time. My father was an entrepreneur: He started out at RCA and then he opened an electronics repair shop; at 40, he began again as a teacher.

“I went to St. Peter and Paul Catholic School from 1965 to 1970, and I was there as the school went from 99 percent white to 99 percent black over that decade. After four years in high school, I was not pre- pared for college: I could not read nor write. But, I needed to learn and I asked for help. I graduated from Temple University. And, I had a wife, who gave me the confidence to go to work every day.

“When I began my career, and I saw my company beginning to go through challenges, I went to my HR person and I said, ‘I don’t want to be a black insurance professional.’ And he told me, ‘Then don’t be.’ So, I changed. I decided rather than being a ‘black insurance professional,’ I would become an ‘insurance professional.’”

Davis had additional advice, which he said he has implemented in his success: “Learn people’s names. Don’t objectify people with pronouns like ‘she’; and treat people as individuals. The secret is persistence; don’t judge people and don’t use labels.”

Davis was acknowledged by the MetroRAP audience with a standing ovation as he concluded his speech. “I accept this award as an insurance professional, not as a black American insurance professional.” Insuring the industry’s future

Keeping with MetroRAP tradition, PIANY past President Shelly Kozel presented the Bernard I. Kozel Memorial scholarship in memory of his father and the Arthur I. Moll Memorial scholarship in memory of the PIANY and PIA National past president, to two PIANY-member employees: Erin Talarico, a Customer Service Representative at Bryan Insurance in New Windsor, N.Y., and Samantha Granickas, a Customer Service Representative at Member Brokerage Service in Briarwood, N.Y. Each winner received tuition to two Certified Insurance Service Representative seminars administered by PIANY. Keynote Speaker

Tom Kozera, CPCU, chairman and CEO of Assured SKCG Inc., who has more than three decades of experience consulting with insurance, real estate and law firms on mergers and acquisitions, keynoted the awards luncheon. Kozera shared his insight on the state of the independent agency system, and provided tips for agents and brokers about what agents should consider before selling or merging their business.

Kozera shared thoughts as an acquirer and seller. He shared his personal history, taking part in hundreds of deals over the past decade, noting that this is a dynamic time that requires much soul searching, particularly by agency principals. In what he called a “state of the state report,” Kozera proclaimed, “The agency business is alive and well.” He went on to explain that the value of agencies, like the value of oil is subject to the rule of supply and demand. Currently, there is more demand than supply, and that puts agencies thinking about selling their businesses right now in a good position.

“Two of the last four years have been record years for agency acquisitions by private equity firms,” he explained. (Private equity firms have replaced banks as the new investor in independent agencies, currently representing a third of all announced transitions today.)

Agency principals have many things to consider before selling or merging their businesses: First, he said, “Be honest and make sure you are mentally ready to sell. Consider your goal in taking this step. If it’s money, pricing of agencies is at an all- time high (which may be a bubble). If pricing is driving you, now is a good time to take that step.”

And, he noted, agencies are not doing a good job perpetuating themselves. “Consider also perpetuation. Many of us have not done a good job at this.”

Thirdly, ask yourself what you like to do and what you want to do more of: Do you want to work more on carrier relation- ships, on personnel issues; do you want to seek out new markets for your agency? “Be honest,” he urged. “What do you want to continue? Do you have a sense of obligation to your clients or to your staff. Make sure when you are merging that the culture, goals and personalities of the two organizations fit.”

To maximize agency value, consider this simple equation: Value is your profit times some multiplier (or variable). To increase your agency’s value, you must raise either the profit or affect the multi- plier. “We often see agency principals who are part-time principals,” he said. “You have a right to do this, you’ve worked hard for your career, but you are the driver— the time a principal spends with his or her agency determines the profit and revenue and value of the agency.”

Also, he said, “Pay attention to the particulars of your business: Are you efficient; is your agency profitable; are you managing your company relationships? Do you pay close attention to bonus payments?”

Other factors Kozera noted included the quality, stability and spread (of risk) of an agency’s business, the quality and stability of its staff; and the quality and stability of its carriers. “Is your business’ technology current? Have you grown, grown consistently and what is the likelihood of growth? What is the age, experience, success of your staff?”

Kozera continued to pose questions agency principals should ask of themselves: “Do you really own your business, or do your producers have a large percentage of it? Producers can leave a business. And, are you paying producers above market rates?” Extraordinary trade show

MetroRAP’s renowned and dynamic trade show was the fast-paced event that New Yorkers have come to anticipate. Some 100 exhibitors met with old friends, dis- played their latest innovations, products and markets, and made valuable new contacts to help each other’s business. This year’s participants and exhibitors enjoyed even greater social media tools and messaging.

Attendees enjoyed a coffee and dessert reception as well as exhibitor and major door-prize drawings. Education keeps agents current

MetroRAP provided opportunities to earn continuing education credit with Errors and Omissions: What Every Insurance Professional Should Know, taught by popular instructor, Cathy Trischan, CPCU, CIC, CRM, AU, ARM, AAI, CRIS, MLIS. Participants heard about E&O exposures faced by all insurance producers, common areas of E&O and strategies to avoid a successful E&O claim, as well as practical E&O-avoidance solutions in the property/casualty and life/health fields. Credits were approved for all licenses and approved for E&O credit by Fireman’s Fund and Utica Mutual.

In addition to education for credit, new members, and even agents interested in hearing about the topic, were also invited to hear from PIANY Government Affairs Director Matthew F. Guilbault, Esq. who discussed agency contracts as part of an opportunity to learn about the many ways PIA membership helps agencies maintain and grow their businesses, as well as save money.

 

Save the date!

Missed MetroRAP, but want to take part in great events like it? MetroRAP is PIANY’s first Regional Awareness Program scheduled for the year—two more are scheduled for 2015: on Long Island on April 22 at Crest Hollow Country Club in Woodbury, N.Y. and in the Hudson Valley on Oct. 28 at the Doubletree Hotel in Tarrytown, N.Y. in the fall. And, be sure you make it to the PIANJ/PIANY Annual Conference at a new location—Bally’s Atlantic City—on June 7-9.[IA]