“Partners”

In this issue of the Insurance Advocate Peter Bickford’s column premieres on page 12. Peter is a longtime, rather astute observer of the business, whose work we have featured with great pride over the years. We believe that, in keeping with the Insurance Advocate’s mission to observe regulation and legislation that affect the progress of insurance, as well as to look out for the livelihood of independent insurance agents and brokers, always seeking to improve the system as it now exists, we are advocates for good insuring practice on all sides. Peter Bickford has earned many stripes in this very same advocacy sphere and we welcome him to our pages….. We are pleased, as well, to run articles in this issue that break ground in a different part of the geography, most notably, an article from the NAD, a self-regulating advertising enterprise, regarding the modification, potentially, of Allstate Insurance Company’s so called “mayhem” ads. We understand how difficult it is for independent insurance agents to compete with direct writing agents, with mixed format “agency companies” and, of course, with the giant direct writers whose ad budgets are outsized and ponderous. Some of the great icons of American television and media are made up in large measure of the competitors to independent insurance agents. And that’s fair in our system of free enterprise, but what is not fair is inaccuracy in advertising. The Insurance Advocate intends to undertake a careful look at this growing problem, especially when and where consumers are urged to be their own “agents” effectively, often with unintended bad results. Truth is a great playing field leveler. We feel that this problem must be understood by those who regulate and those who wish to compete fairly.… A hardening market ahead? Everyone is saying so; media, pundits, opinion makers and panelists. Keep your eye on the ball, it is happening…We note with great pleasure that Victor Marques, a seasoned reinsurance executive, has joined US RE to add to its already great strength in reinsurance brokerage. The Pearl River powerhouse is on the move…Another focal area that we are introduced in these pages more than a year ago has come to pass. We are following a very interesting lawsuit between two gigantic insurers that relate to policy adjustments affecting life settlement policy holders that could impact the entire set of STOLI investors and participants… more on this ahead.… One last note, PIA has undertaken its survey of agents’ vis a vis companies; we encourage your participation and frankness. The days are gone when “partners” have it easy on either side of the equation. The bigger players, the companies, depend upon good independent agents to a great extent and, of course, agents depend upon them. But the process gets muddied when the distribution force is taken for granted or when companies are not properly interfaced with agents. There is a balancing act here and survey’s like this one, although not usually very piercing or incisive, are nonetheless a good first step in identifying who the real “partners” are. Be sure to respond.