Big I Confab Targets Five Key “Takeaways” for New York Agents
Big I New York brought together the independent agency community at Go Big 2019. This sold out event featured sessions on agency valuation and cybersecurity, a panel of carrier leaders, and an industry marketplace. Five key takeaways were pulled to share from this insightful day.
1. The Agents Leading Big I NY Believe Independent Insurance Agents ARE Relevant and That They Serve Customers Best.
As John Cofini, principal of BNC Insurance Agency, Inc., was sworn in as Big I NY’s Chair of the Board, he shared, “Independent insurance agents and brokers are relevant. The change that’s surfacing is in the tools.” He emphasized the need to shift to a growth mindset where leaders understand the value of their businesses, embrace technology and automation, and engage with carriers to enhance what they deliver to customers.
This belief ran deep throughout the event. Lou Atti kicked off the day by stating, “We believe independent agents serve customers best, with trusted advice and the right coverage options to protect what matters most.” He challenged the room, asking if there was anyone who disagreed. While surely rhetorical, we feel confident no one in attendance disagrees that this channel and its agents DO serve customers best.
Cofini said, “Big I NY has your back because we know what you are dealing with. There is an entire board of agents working on issues that you face in your agency today. You need help with technology, with talent development and recruitment, with advocacy. And that’s what we are doing.”
Newly elected/re-elected individuals joining him on the Board of Directors:
David MacLachlan, CPCU of Dominick Falcone Agency and Falcone Associates in Syracuse, New York
Ronald Brunell, CIC of Acrisure, LLC doing business as The Signature B&B Companies in Garden City, New York
David Bodenstein of Mike Preis, Inc. in Callicoon, New York
Marianne B. McCormick, CPCU, AAI, AIS, AAI-M of Insurance Office of America in Binghamton, New York
Victor Rutecki of Rutecki Agency in West Seneca, New York
Nicholas C. Masterpole, Jr. of Masterpole Murphy Agency in Syracuse
See the full list of Big I NY board members at BigINY.org/board
2. Talent Recruitment and Development are Key to Agency Value and Growth
Bobby Reagan uses a combination of experience and hard data to make informed recommendations on how to increase agency value when working with clients through Reagan Consulting. In the Go Big & Grow Your Agency Value session, he shared some eye-opening stats that lead back to two important facts: first, the industry is aging; and second, recruiting drives growth, sustainability, and value.
Here are some key agency numbers:
Weighted average shareholder age up from 51.1 to 53.7 over 10 years
Weighted average producer age up from 46.6 to 49.7 over 10 years
41% of producers are over age 55, and there are fewer leaders under 46.
Why These Stats Matter
Organic growth and profitability are the two drivers of value. Organic growth of firms with an older average age hovers around 1% to 2%. In contrast, agencies with a more balanced age distribution see organic growth of 8% to 9%. Firms that invest more in hiring new producers grow faster.
Carriers on the Go Big panel emphasized the need to develop a culture that attracts younger people and adds more diversity to agencies. Each company representative shared that they have training tools available to help the onboarding process, but some acknowledged they have a hard time knowing the best way to support agencies in hiring. Companies also understand balancing the risk of hiring someone who may fail verses not hiring at all. But the fact remains: hiring is critical.
To be a successful agency in next five to ten years, Bobby says generational health – becoming great at recruiting, hiring & developing producers – is of utmost importance. Successful agencies will create an excellence-focused, client-centric culture where all employees can prosper. These qualities, along with collaboration, need to be modeled by agency principals.
The bottom line is this: in order to increase agency value, you must create a great culture, attract diverse, quality employees, create organizational efficiencies, and lead with vision.
3. Both Carriers and Agencies Must Improve Technology and Automation
Technology and automation represent both an opportunity and pain point. No one in our channel has it fully figured out. Barriers include integration capabilities, implementation time, cost, and for some, openness.
Throughout Go Big there was a clear message – technology is a linchpin to future success.
A video of a racing pit stop shared by Bobby Reagan served as a great example. In an Indy 500 in 1950, it took over a minute to complete the tire change. In a 2013 race, it was 2.4 seconds. Our industry does not currently operate at 2.4 seconds. Reagan emphasized that agencies must embrace technology to achieve greater value and growth. The many benefits include enhanced ease of business and improved customer service, increased efficiency and productivity, and better recruitment ability.
The leaders on the carrier panel agreed. Greg Murphy of Selective said, “The customer wants a seamless experience; they want you to know them.”
When asked how they see the state of agency-company relations today, the answers given by carrier leaders called for an improvement in using technology. The companies didn’t shirk accountability in the challenge. Noted weaknesses included agency management systems not capturing important customer interactions, fragmentation from automation, and sharing of data. The companies are striving for improvement both internally and in conjunction with systems like Vertafore and Applied.
Carriers are making data available to agencies, but there is inconsistency in the amount and types of data shared. Standardization would benefit agencies, the companies, and ultimately customers.
While technology raises the bar in terms of speed, carriers see the value in combining it with human interaction. For Tyler Asher of Liberty Mutual/Safeco, using artificial intelligence (AI) is not about replacing underwriters – it’s augmenting their capabilities. Chubb is using AI to measure propensity to buy – if they purchased X, they are likely to purchase Y. According to Jack Roche, consumers “still need human interaction.”
That said, every day is a new frontier when it comes to technology. Refinement and use of predictive modeling is expected to grow. AI capabilities are expanding. Data is being collected anywhere and everywhere. A rising startup, DAIS Technologies, shared how it’s making the industry agency-centric through the Internet of Insurance, a risk syndication network that will connect agents and carriers on a shared platform.
Carriers and agencies need to come together to harness it to improve workflows, deliverables, and give more time to agents to do what they do best – serve customers.
4. The Cybersecurity Threat is Real, Especially for Small and Mid-Sized Businesses
In NY, we’ve heard the word cybersecurity a great deal. Due to the NYS Cybersecurity Regulation, agencies doing business in this state have faced a slew of tasks to complete in order to comply. Because some of the requirements require an approach exponentially more burdensome on small businesses than the benefits gained, the idea of cybersecurity has become a sore spot for many. However, protecting your data should be a key priority in every business.
Andrew Frisbee of LCG Discovery says cybersecurity should be part of your business strategy, regardless of regulation. In the Cybersecurity War Stories session, Andy raised the alert level, using a real-life example in hopes of changing the mindset from one of weakness to one of strength.
Small and mid-sized businesses are the weak link for cyber attacks because they have fewer resources for defense and can often be used as a conduit for a larger attack (as seen with Target and Marist College). Andy warned, “Cyber-criminals are watching you. What do you want them to see – an easy opportunity or Fort Knox?” After a cyber attack, many businesses of this size never open their doors again.
In a case study of a recent LCG forensic investigation, Andy shared that the lack of cybersecurity policies and procedures cost the business almost $200,000, a lifetime of ID protection for its employees, and significant reputation damage. In this case, a large amount of the damage done was to employees and their families.
What can we learn from this example?
Change passwords! One of the employee passwords hadn’t been changed in two years. Make sure they are unique, strong passwords and don’t share them.
Remove admin access immediately after an employee departs.
Have a secure firewall and properly log traffic.
Make sure the third-party service providers that have access to your data have and adhere to proper cybersecurity standards (Big I NY has tools to help you with this).
Have a cybersecurity policy/program in place and execute it. This includes making sure every employee is trained on your procedures.
Over in the Industry Marketplace, Big I NY’s research guru Tim Dodge answered cybersecurity compliance questions and provided flash drives preloaded with related tools. Many agencies have yet to implement all the policies and procedures required in order to fully comply with the Cybersecurity Regulation. All agencies must have a cybersecurity policy in place right now. Big I NY has an entire toolkit of compliance resources, including a customizable policy template. It’s free for members. If you weren’t able to grab a flash drive from Tim, you can download these tools at BigINY.org/cyber.
The day was capped off with DAIS Technology announcing an online tool to help agencies with their TPSP due-diligence.
5) There are Many Agents, Individuals, and Companies Making a BIG Difference in the IA channel and We Need to Inspire Others
Our channel needs people willing to take the extra step, go the extra mile. We need to inspire future generations to continue raising the bar and strive for excellence. That’s why Big I New York chose Go Big as the platform to award many standouts this year. No matter your company, association, or agency, let the following inspire you to raise your hand and keep our industry strong.
HONORING OUR AWARD RECIPIENTS
1882 Award: James D. Sutton, CPCU, AAI, CIC
This highest honor recognizes the individual member who has most significantly contributed to Big I New York, the industry, and their community. This deserving individual is a man of the highest integrity, commitment and dedication to our industry and his community.
Thom McDaniel Exemplar Award: Joseph Headd, CPCU
This award is presented as a reflection of the individual’s dedication and unwavering support of the Independent Agency System by their words, deeds and actions. Joe’s been an exceptional friend to Big I New York and all of the member agents he’s worked with.
The Vincent Alba Award: Ronald Brunell, CIC
This recognition is awarded to the individual who makes an outstanding contribution to the political effectiveness of Big I New York. Ron has demonstrated passion and dedication to furthering the cause.
Distinguished Service Award: Big I New York Staff
As Chair of the Board, Lou Atti chose to do something different this year. He honored an entire team. Proud of the incredible commitment to agencies and the industry this year surrounding cybersecurity, Lou honored the Big I New York staff.
Joel S. Pollack Young Agent of the Year: Nicholas Campbell
This award is presented to a young agent for their outstanding achievements to the Independent Agency System and their community. This recipient is very involved in his community, our industry, and on his local association board.
ACSR of the Year: Lexie Dumont, ACSR
This recipient consistently provides exceptional service to her customers while building strong relationships with carrier partners. The quality of her work and desire to go the extra mile for her clients have made her a valued member of her agency.
Local Association of the Year: Big I Westchester
This award recognizes outstanding effort and accomplishment in local association meetings, legislative advocacy and public relations to enhance independent agents. This group hit it out of the park in all four areas.
Top Carrier Partner – Over $100 Million in NY Written Premium: Selective
Selective invests in their agency partners with recruitment, training and mentoring programs as well as women’s leadership programs designed to help agents thrive in today’s marketplace and beyond. They are also expanding value-added technology solutions with a goal of further increasing customer satisfaction to help their agents gain and retain customers. Selective is well-positioned to support independent agency partners today and in the future.
Top Carrier Partner – Under $100 million in NY Written Premium: Sterling Insurance Group
Sterling is focused on ease of doing business and efficiency while their underwriting approach and niche markets support growth and profitability for independent agents. They focus on building relationships, consistent pricing and strong retention, along with outstanding claim service.[IA]
Didn’t make this year’s event?
Save the date now for GO BIG 2020.
May 19, 2020 | Syracuse, NY
