ANE – THE YEAR IN REVIEW
It’s been a productive and profitable year for ANE and its member agencies. As we get ready to perform even better in 2018, here’s a quick look at some highlights from 2017.
January
ANE authored article on technology featured in Insurance Business America magazine
February
ANE Announces Seven Agencies Added in New Jersey and Pennsylvania
March
ANE CEO John K. Tiene honored at the 35th New Jersey Brain Injury Alliance Gala
April
ANE Annual Conference attended by more than 160 independent agents and other insurance professionals from New Jersey, Pennsylvania and Delaware.
June
2017 ANE Carrier Appreciation Beach Party draws largest crowd ever!
ANE is a sponsor of the annual conference of the Professional Insurance Agents of NJ/NY
July
ANE supports the annual Big I Trusted Choice Charity Golf Outing
ANE Profile Featured in Insurance Agents & Brokers Pennsylvania (IA&B) magazine
August
ANE VP of Operations Jocelyn Rineer Named One of 2017 “Insurance Business America Elite Women in Insurance”
October
ANE produces new brochure refocusing our strategy and message
ANE is out in force today supporting Special Olympics and the PIANJ Golf Classic
November
ANE Selected as a Finalist for Network of the Year in the 2017 Insurance Business Awards
ANE Announces Eight New Member Agencies in Pennsylvania and New Jersey
December
ANE is the Event Sponsor for the New Jersey Young Insurance Professionals Gala Awards
ANE CEO John Tiene named to the IBA Hot 100 List
How to Hire Millennials – and Make Them Successful
In a recent issue of Independent Agent Magazine, ANE CEO John K. Tiene discussed how to win the talent battle agencies like yours are facing. ANE, Agency Network Exchange, helps independent agents grow and stay independent.
Most insurance agencies are staffed primarily by baby boomers. How is your agency going to manage when your experienced producers and personnel who keep your clients happy retire?
The answer is millennials.
You might think millennials are job hoppers. Many millennials think the insurance industry isn’t for them. Here are some insights to help bridge the divide - millennials:
- Value job enjoyment above compensation, followed by job security and flexibility
- Are the most connected generation in history
- Want to understand how their work impacts clients, their employers and the world in general
Unfortunately, 80 percent of them have limited knowledge and understanding of the employment opportunities available in insurance. But, once they join the industry, 90% say their insurance careers provide job satisfaction, financial stability, and most plan to remain in the industry.
That’s one reason why we work with GAMMA IOTA SIGMA - the national fraternity for insurance, risk management and actuary science students. ANE can connect member agencies with interested students and graduates for internships and jobs.
If you are facing the millennial hiring challenge, learn more in our article (download). Then give us a call. We can discuss hiring - and help you solve any other issues your agency may face.
Tech Can Bridge the Insurance Workforce
In this week's issue of Independent Agent Magazine, ANE CEO John K. Tiene discusses how new technology implemented in the independent agent distribution channel will win the talent battle the industry is currently up against.
According to the Bureau of Labor Statistics, the insurance industry will have an estimated 400,000 job openings by the year 2020. And nearly 50% of the industry's workforce is older than 45, with only 27% under age 35 in line to replace them.
Those statistics will play out in smaller agencies traditionally staffed by producers, customer service representatives, account executives and managers. In the next 10 years, many of these employees will retire, and agencies will be fighting to fill positions left empty by the oversized baby boomer bubble.
The bottom line: Fewer producers and personnel will result in less revenue and diminished customer service—which could drive existing clients away.
The solution to this looming crisis: Millennials, who make up 25% of the U.S. workforce today and will comprise 50% of the global workforce by 2020, according to BLS. The Pew Research Center reports that millennials value job enjoyment above compensation, followed by job security and flexibility. They volunteer and align with social causes. They are the most connected generation in history, spending an average of 14.5 hours a week on their smartphones, according to Experian Marketing Services.
Misunderstood as job-hoppers, millennials want to understand their career path, even though it may take a decade or more to achieve their goals. They also want to be engaged and understand how their work impacts clients, their employers and the world in general. The traditionally stable insurance industry is suited for millennials who crave job security, and the opportunities it provides for working directly with clients to mitigate business and personal risk appeals to their desire to help others.
Unfortunately, the insurance industry is fighting an image problem: The stereotype pencil-pushing, gray-suited, 9-to-5 insurance salesman is not attractive to millennials. Eight of 10 have limited knowledge and understanding of the employment opportunities available in insurance, according to The Institutes.
Technology can help bridge the gap. The insurance industry is finally catching up to the rest of the business world in this realm: Successful agents are using cloud-based computing and portals to interact with clients more efficiently. Big data analytics enable agents to mine for new business and cross-sell products to deepen customer relationships.
Armed with a new arsenal of technology tools, tech-savvy agencies will not only increase customer loyalty, but also recruit and retain millennial employees for insurance jobs and careers. New high-tech job functions created by big data analytics are attracting candidates with backgrounds in science, technology, engineering and mathematics.
Agencies are using mobility, social media like LinkedIn, and job boards like Indeed, Monster and CareerBuilder to find “passive” talent—candidates who aren’t actively looking for a job because they already have one. According to Vertafore, millennials are more than twice as likely as other generations to be recruited via LinkedIn or other social media. Agencies that leverage social networks to hire millennials demonstrate a forward-thinking approach that appeals to millennials as employees.
Such efforts may finally be paying off. When Vertafore surveyed insurance professionals ages 19-35, more than 90% said insurance careers satisfy job satisfaction criteria including work-life balance, career development opportunities and financial stability. Eighty-one percent said they plan to remain in the industry for as long as possible, and 70% would recommend an insurance career to their friends—results that suggest the best recruiting strategy may involve millennials themselves.
Independent agencies that embrace technology to connect with clients, operate more efficiently and recruit millennials will win the talent battle and be ready for whatever the future brings.
To see the full article on Independent Agent Magazine online - click here.
Insurance Network CEO Says Independent Agents Must Prepare for Looming Workforce Crisis
John Tiene, CEO of Agency Network Exchange, warned ANE member insurance agents that a workforce gap in the next decade will make it harder for independent agencies to find, recruit and keep new talent.
John Tiene, CEO of Agency Network Exchange, warned insurance agents at the ANE annual conference today that an unprecedented workforce gap in the next decade will make it harder for independent agencies to find, recruit and keep new talent, and ultimately stay in business. The Bureau of Labor Statistics predicts the insurance industry will have an estimated 400,000 job openings by the year 2020.
“The workforce crisis will be hardest on smaller insurance agencies with aging staff in their 50s today. Fewer producers and personnel could have big impacts on revenue and customer service that will drive existing clients away,” Tiene said.
“Tech-savvy agents who embrace mobile technologies and social media will be in a better position to compete for talent.”
Nearly 50 percent of the industry’s workforce is above the age of 45, with only 27 percent under age 35 in line to replace them. Millennials, the largest group entering the workforce, make up 25 percent of the U.S. workforce today and will be 50 percent of the global workforce by 2020. (BLS)
According to Tiene, “Insurance companies are creating innovative internship and training programs that give Millennials an opportunity to explore careers in insurance and help attract talent from outside traditional channels.”
The keynote speaker at this year’s ANE Conference was Noelle Codispoti, executive director of Gamma Iota Sigma, an international fraternity for students of insurance, risk management and actuarial science. She discussed the talent gap statistics in the insurance industry and how Millennials are responding to recruitment efforts.
“Students starting in entry level positions today are more focused on company than cash,” said Codispoti. “Companies should be open to discussing not only compensation and career growth, but also the support they are willing to give the individual in terms of professional development, as well as the company’s community outreach efforts and commitment.”
The ANE conference was attended by more than 160 independent agents and other insurance professionals from New Jersey, Pennsylvania and Delaware. In addition to the keynote presentation, the event featured breakout sessions for agency owners, producers, account managers and CSRs.
See the full press release on PRWeb here!
ANE Adds First Independent Board Member Neal Stanley, Raymond Pavese Elected Chairman of Board
ANE, Agency Network Exchange LLC, announced that it has added Neal Stanley as the first independent member of the ANE Board of Directors. ANE has also elected Raymond Pavese as Chairman of the Board.
"Neal Stanley, who adds greater depth and expertise to our Board as we pursue new strategic directions that add value for our agency members and their clients," said John Tiene, CEO, ANE. " As Chairman of the Board, Ray Pavese continues his commitment to ANE that started when he helped to found the company seven years ago."
"ANE is one of the most innovative models for agents," said Neal Stanley - recently elected to the ANE Board of Directors. "I'm very pleased to continue my involvement with independent agents working with ANE."
Stanley has more than 30 years of experience in the management and direction of insurance companies and agencies. He recently retired as Chief Operating Officer for United Valley Insurance Services, Inc., an agency cluster in California. He joined United Valley in 2002 as executive vice president to manage its Retail Agency and to lead the Agency Acquisition Program. Stanley has served on the Board of Directors of various industry organizations and is an active member of the State Bar of California.
"It's a privilege to serve ANE in this new role," said Pavese. "Our industry is changing quickly and in dynamic ways. ANE is committed to helping independent insurance agents remain independent."
A founder of ANE, Pavese began his career at the Prudential Life Insurance Company after graduating from Roger Williams University in 1986. Within a year, he joined his father at the Pavese-McCormick Insurance Agency in New Jersey, where he expanded the agency footprint from Middlesex County to thousands of clients throughout the state. He bought the agency with Michael McCormick from their fathers, and today it is one of the largest in central New Jersey with clients across the Mid-Atlantic region. He is the past president of the Middlesex County Independent Insurance Agents, Exchange Club of New Brunswick, the Brunswick Bank and Trust Advisory Board, and the Executive's Association of New Jersey, one of the oldest and most prestigious networking organizations in the state.
ANE has grown from just seven members on 2009 to more than 45 independent insurance agencies with over $150 million in controlled premiums. In 2014, ANE announced plans to expand into Pennsylvania and other mid-Atlantic states. In the last three years, ANE has helped its members write more than $75 million in organic new business. The network paid more than $1.8 million in profit sharing to members last year.
Help Your Agency Meet Customer Expectations
With 2.4 billion smartphone users by the end of 2017, how is your agency providing assurance to customers?
Insurance buyers turn to independent agents for assurance that the bases are covered and their risks are mitigated by a professional. Their expectations for engagement with their agent during this process has changed rapidly and will not stop evolving. Focusing on an Omni-channel experience with your client will satisfy their need for fast interaction, but still provide personalized touches only an independent agent can provide.
Empowered by technology, your customers have more leverage than ever before. You as an agency principal or staff have to embrace four imperatives:
- For speed, tap into mobile connections.
- For intelligence, set up systems to gather customer knowledge.
- For impact, build a better customer experience.
- To become more flexible, embrace digital transformation.
Meeting these changing customer expectations is hard and not every agency will pursue it equally. Watch Ellen Carney, Principal Analyst at Forrester Research, Inc. teach us about data driven marketing, customer buying habits, and the future of the independent insurance agency.
Staying Relevant in the Age of the Customer
ANE CEO John K. Tiene's featured article in this week's edition of Insurance Journal.
Laptops, smartphones and tablets are giving consumers the power to make buying decisions from anywhere, and at any moment of their choosing.
“We’ve entered this new age — the age of the customer,” said Ellen Carney, principal analyst, Forrester Research at the ANE, Agency Network Exchange annual conference in April. “Digital has moved that power shift into the hands of customers.”
Forrester predicts 2.4 billion smartphone users and another 651 million tablet users by the end of 2017. The pervasiveness of these devices has changed consumer expectations: insurance agents need to provide their clients with the tools they want to interact with the agency. Agencies must have a robust mobile-friendly website, a mobile app, client portal and provide a location-specific experience.
Agents must rethink how they use technology to improve, differentiate from competitors and make data work for them.
At the ANE conference, I asked several industry executives and ANE member agents for their thoughts on how agents can stay relevant in the age of the customer:
- Matt Kirk, senior vice president, The Hartford: “Your clients are going to need advice and counsel about the products they are buying. They expect you to take care of their needs. That doesn’t change. What is their expectation of that engagement? How will you communicate with them? The way they are engaged is going to change, and it will change rapidly.”
- Gary Capone, vice president, Franklin Mutual Insurance Co.: “People still want to do business with an independent agent. Millennials are not just looking to buy online. They want professional advice. You have to listen to the customer, give them what they want, the way they want it, be very flexible and use many channels.”
- Bob Redden, vice president, Selective Insurance Companies: “The challenge is where to start. Everyone has limited resources. Where do you get the best return? Moving forward, a focus on an omni-channel experience for the customer becomes even more critical. You may have customers who prefer to interact by phone, some by web or text. One way to be relevant is to let them know their options.”
- Ellen Carney, principal analyst, Forrester: “A lot of organizations are available to help independent agents. You can have the same advantage as the most technically sophisticated agency. Someone else can manage the infrastructure, make sure the experience is fast, easy to navigate, and meets expectations in terms of mobile, social and whatever the next digital touchpoint could be. Technology is a lot different than it was in the 1990s when you had to build it yourself. Now there’s someone else who will build it and by the end of the day, you are up and running.”
- Freddie Marin, ANE agent, Your Insurance Solutions: “I was afraid that physical agencies were no longer relevant. Everybody is addicted to cellphones and 80 percent are doing research online, but they are looking for agents. You have to learn to interact in a new way through technology, but still provide the personal touch that a digital device can’t provide.”
- Doug Mohr, vice president, Vertafore: “It’s those little touches. I get the Starbuck’s card on my birthday, a note when it’s time for renewal. I think of my agent first before I think of the company. It’s because my agent has that personal touch.”
- George Reese, agent, Henry Young Insurance Agency: “We are in a changing world and the pace of change is accelerating. We need to be open to everybody in all the various ways they want to communicate, and be responsive to that.”
Forrester Analyst Says Insurance Agents Must Embrace Digital Technologies to Stay Relevant at 2016 ANE Conference
At the Agency Network Exchange Annual Conference this week, Forrester Principal Analyst Ellen Carney told independent insurance agents they must exploit digital technologies that create value and increase operational agility to stay relevant in the face of new competition from digital "disruptors" that are changing the way insurance is sold and serviced.
In Carney's keynote, "The Agent in the Age of the Customer: The Customer-Driven Changes that are Remaking Insurance," she outlined four market imperatives for independent agents:
- Turn big data into business insights
- Transform the customer experience
- Embrace the mobile mind shift
- Accelerate your digital business
"Agents who want to succeed must change how they do business by embracing the digital technologies today's consumers are looking to utilize," said John Tiene, CEO, ANE.
"Change is never easy, but it is essential and necessary to keep clients from migrating away from independent agents. ANE is helping our agents succeed by giving them the tools they need to transform their businesses."
Last year, ANE announced an agreement to make Vertafore the exclusive provider of agency management technology solutions for ANE members. ANE agencies receive preferred support and pricing for the Vertafore Agency Platform -- comprehensive software that helps agents easily and economically grow new business, retain clients, maximize profitability and manage business lines.
The ANE conference was attended by more than 160 independent agents and other insurance professionals from New Jersey, Pennsylvania and Delaware. The event featured six break-out sessions for agency owners, producers, account managers and CSRs. Carney also participated in a panel with executives from The Hartford, Selective Insurance Company and Vertafore to discuss "What Agents Need to do to Stay Relevant."
Insurance Information Institute President Addresses ANE Members
At ANE's Annual Conference in April, Dr. Robert P. Hartwig, CPCU, President of the Insurance Information Institute addressed the conference on the state of the industry.
Dr. Hartwig discussed the state of the industry and what it means for the independent insurance agent today, as well as privately sat down with us to explain industry trends.
What are the biggest issues facing insurance agents?
The largest issue is our industry's increase in distribution channels which causes more competition for the independent agent. Direct channel competition with aggregator sites, such as Google, also provide more outlets for consumers to shop around. Hartwig does describe that individuals are more willing to work with agents if they communicate with their clients the way they want to be communicated with. This meaning agents need to expand their communication repertoire through technology and social media.
Advantage of joining a network?
Networks, such as ANE, expand the depth of an agency's capacity without an income loss. Independent agents who join a network can satisfy a larger range of clients they normally would not be able to on their own.
Watch Dr. Hartwig's full interview on our YouTube Channel!
Learn What Big Broker Mergers Mean for Independent Agents
On Wednesday, July 8th, Insurance Business America published 'Big broker mergers: What they mean for smaller independents' featuring ANE CEO John K. Tiene. Find out how smaller agencies can still stay competitive.
Merger and acquisition activity among major international brokers –such as last week’s $18 billion merger deal between Willis Group and professional services firm Towers Watson – should send an important message to smaller independent agencies on how to survive in an environment of heavy consolidation, says one industry leader.
According to John Tiene – chief executive with the East Coast-based Agency Network Exchange – banding together through networks and alliances is the best approach for independents hoping to compete with broker operations that are growing increasingly larger.
“The Willises of the world are only going to get bigger and continue to crowd out mid-sized agencies that have historically made up the bulk of the market,” Tiene told Insurance Business America. “That really just reinforces the need for insurance agents to start thinking about joining an organization that gives them some of the similar scale and access that Willis and others have.”
The Willis/Towers Watson deal is certainly massive, valued at $18 billion and expected to bring in annual revenues of $8.2 billion. Particularly key to the transaction is the access to data analytics Willis will gain from Towers Watson, aiding the brokerage in richer consumer insights, risk management solutions and product development.
That only underscores the importance of developing technology for smaller and mid-sized agencies – again something that can be accomplished through agency networks, says Tiene.
“The analytics piece is very important – independent agents have to be as tech savvy and proficient as the bank, the investment house and the corner drugstore,” he said. “Commercial clients especially are now wanting to get insurance online, and agencies have got to get with it and start doing business in different ways.”
Agency Network Exchange recently announced an exclusive deal with Vertafore to provide members with agency management software that includes some of those business analytics solutions. Other technology providers have launched similar tools to help agencies compete with larger brokerages and carriers.
Such capabilities – including the greater market access afforded by membership in a network or alliance – will only grow in importance as 2015 shapes up to be one of the biggest years for insurance consolidation in recent memory.
With the right tools, however, Tiene sees this trend eventually favoring smaller independents.
“The challenge with the bigger, conglomerate brokers is that they haven’t taken time to become efficient organizations,” he said. “Many of their clients feel lost within the labyrinth of a mega broker, and that affords a great opportunity for smaller agencies to take their business by being nimble and providing the kind of service clients want, with the access and influence of a larger organization.”
View the full article in Insurance Business America here