BY: Kathleen Frenzel, CPCU

Our October meeting, done jointly with the IIAA of Philadelphia & Suburbs, was a follow up of our September meeting "View From the Top" panel discussion. This month, with 94 in attendance, we had a panel of agents and brokers ranging from extra large, to large, to small. We even had Excess and Surplus Lines broker. Wow! The panel was comprised of:

Robert Amoroso, President, Marsh USA, Inc.

John Cantrill, President, Cantrill, Clark, & Hays, Inc.

Al Federico, Jr., CPCU, President, Federico & Associates

William Kanehann, COO, Mellon - Clair Odell

Each of the gentlemen gave their perspective on their side of the house and what they believe the future holds in store. The one word that was the main stream of each presentation was "Change, Change, and more Changes". In fact, change is occurring so rapidly in all aspects of our industry that sometimes we are not sure where to go or how fast. Growth, expansion and innovation seem to be the buzzwords of today.

Consolidation and merging is taking root in all industries such as accounting, medical, communication and entertainment. It was mentioned that one of the reasons for this is modern technology. Remember the days of no fax machines, carbon paper, and when mail had no competition?

It seemed to be the consensus that the Internet appears to be the "toy of the decade"; so much so, that now the small people can get on line and comparison shop for their insurance needs. Al mentioned that the real crux is that "now there is a level playing field". All individuals have the same ability to compete. There is the potential for greater individual effort due to the accessibility of e-mail and shopping on the Internet. We are also offered the luxury, in many cases, of working where and when we want. We definitely are in the situation of controlling our own insurance destiny, both insurance professionals and consumers alike. We can either educate or be educated with the push of a button. This new way of doing business is marvelous but can also be very scary.

The panel elaborated on how the tide has swayed for their particular agencies and the insurance industry in general. Many competitors are dabbing in the insurance industry. Some examples are banks, consulting firms, brokerage houses and accounting firms. Three reasons for this are:

1. Many corporations are stronger financially,
2. There is a stronger client base, and
3. There is a broader range of products and services being offered.

While all this is going on in business our client’s desire:

Want cutting edge ways to protect their earnings.

A highlight of Bob’s talk was that "our focus should be on investment of our money". Three areas that he believes we should focus on are:

1. Consultation - dealing with clients to assist them on their insurance needs and guide them through complex issues.

2. Technology tools - this is our best source of information, and

3. People – human resources are our most valuable commodity. We need people at the top of their game to help clients solve problems.

With the vast changes in portfolios and merger and acquisitions we need to constantly sharpen our skill sets. Along with this attention to growing as professionals we also must recognize that for the all agents there are some barriers that might stand in the way. Remember that agents represent a lot of companies and therefore there are many independent forms and endorsements that must be dealt with, not to mention the affidavits. There is also the time and expense of renewing a policy every year. If an agent wants to do business in numerous states he must file for a non-residence license, a procedure which involves heavy paper work. Finally there is the regulatory issues that must be complied with. Just keeping up with all the requirements and legislative issues is an immense undertaking. As you can imagine given the broad range of customers an agent deals with and the fierce competition on their back, sometimes just surviving can be a challenge.