What do agents say? 2018 NU/PIA Independent Agent Study results
In 2017 the National Association of Professional Insurance Agents (PIA) conducted its inaugural Independent Agent Study — a research project designed to annually take the pulse of independent Property & Casualty insurance agents throughout the U.S.
Here are three of the insights from the study – and ANE’s response for its members
The exodus of talent on the agency side remains concerning. Forty-five percent of our independent-agent study respondents, most of them principals or owners, said they planned to retire in the next nine years.
ANE works with our members to develop new producers by providing training and ongoing support. We also help owners prepare for succession if that’s what they want.
Only about 1 in 4 (24%) of PIA members who responded said their insurance carrier relationships were improving; 19% said their relationships had declined.
ANE prides itself on providing members better access to more carriers. Our network’s buying power and our close working relationships with our carriers means when agencies need support to close a deal or solve a problem, they get it.
Despite 56% being armed with agency smartphones, only 41% of respondents said they can provide quotes to prospects while out in the field.
Our members access Vertafore at a discounted cost and with hands-on support enabling agencies to “go mobile” and much more.
If you are facing any of these issues, ANE is here to help.
ANE Selected as a Finalist for Network of the Year in the 2017 Insurance Business Awards
Agency Network Exchange, ANE has been selected as a Finalist for Network/Alliance of the Year – Membership 100 Agencies or Fewer in the inaugural Insurance Business Awards America. Insurance Business America is the leading insurance-focused magazine with more than 500,000 monthly visitors across the globe. IBA readers voted in their thousands to select finalists in 23 categories, including stand-out services, employee focus and corporate social responsibility.
“We are excited to be recognized by our peers across the industry for our leadership and vision,” said John Tiene, CEO, ANE. “ANE’s success demonstrates that our business model is working for independent agencies that want to stay competitive and grow.”
Winners will be selected by a panel of industry experts and announced on November 29, 2017 during a stellar black-tie awards ceremony at Chicago’s Navy Pier hosted by TV superstar Alfonso Ribeiro.
“The finalists are the best of the best,” said Tim Duce, CEO, Insurance Business Magazine. “They demonstrate the resilience, innovation and sheer management smarts it takes to build a thriving business today. Success stories like theirs are the lifeblood of the Insurance industry.”
The inaugural Insurance Business Awards America is one of a series of international insurance events. The first US event will be held in Chicago and will bring together industry leaders to celebrate excellence in the Insurance industry and is designed to recognize individuals, teams and companies for their outstanding achievements and contributions to the field.
For the full list of finalists and information about the event, visit Insurance Business Awards America.
Are Millennial Insurance Buyers More Likely to Listen to Millennial Insurance Agents?
When you are young, who are you more likely to listen to – one of your peers or someone older than you telling you what you should do?
Studies show millennials depend on their peers’ opinions when it comes to making purchases from reading each other’s social media posts to online product reviews on Amazon. Why would buying insurance be any different? This is a follow-up to our post How to Hire Millennials – and Make Them Successful.
If you are hiring millennial producers for your agency, one approach to their sales efforts is to educate their peers about misconceptions they have about insurance. Here are just a few.
- 48 percent of millennial respondents said driving a red car increases your premium (it doesn’t)
- 35 percent said one’s home ZIP code does not affect the cost of auto insurance (it does).
- Millennials are less than eager to educate themselves about health insurance because, they don’t think they need it. (they do.)
Read more in this interesting article “Millennial Meltdown: How Insurance Ignorance Puts an Entire Generation at Risk.” And, share this article with your millennial producers.
ANE's IA&B Platinum Profile
ANE is proud to be a platinum partner of Insurance Agents & Brokers Pennsylvania (IA&B). In July, IA&B ran a platinum profile on our organization.
ANE, Agency Network Exchange remains dedicated to helping independent insurance agents stay independent in a quick-changing industry. Our team has a deep understanding of the marketplace dynamics and trends affecting our member agencies.
The insurance industry is changing faster than most agencies can keep up. Profit margins are shrinking. Carriers are paying less contingency revenue and demanding more production. New technologies and evolving customer expectations are challenging the old ways of doing business. Complacency is limiting business growth. An aging workforce is putting pressure on agencies to find, recruit and keep new talent.
More than ever before, independent agents are finding it harder to own, control and operate their businesses. Our innovative approach adds tremendous value to help our agencies grow, compete and stay independent.
TO VIEW THE FULL IA&B PROFILE, CLICK THIS LINK..
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 Seven Agencies in New Jersey and Pennsylvania
More than $22+ Million in New Business Premiums Written Last Year
ANE, Agency Network Exchange, LLC announced it added seven new agencies in Pennsylvania and New Jersey last year to grow its membership to more than 50 independently owned and operated agencies. The network, which began with just seven agencies in 2009, helped its members write more than $52 million in new business premiums over the last three years and paid more than $5.6 million in profit sharing to members in the same period.
"ANE's continued momentum across New Jersey and Pennsylvania demonstrates that our business model is working for independent agencies that want to stay competitive and grow," said John Tiene, CEO, ANE. "ANE will continue to add talent, realign staff and invest in technology that drives our members' success and helps us achieve our goal of expanding the network across the Mid-Atlantic states."
ANE added four agencies in New Jersey:
- U.S. Insurance (Newton, NJ)
- Richards & Summers (Denville, NJ)
- Livingston Insurance Agency (Livingston, NJ)
- Fidella Insurance (Mount Laurel, NJ)
ANE added three agencies in Pennsylvania:
- Absolute Insurance Agency (Upper Chichester, PA)
- Commercial Insurance Providers Group (Levittown, PA)
- The DeAngelo Company (Wyomissing, PA)
ANE Personnel Announcements
ANE also named Neal Stanley as interim Chief Operating Officer and consultant. Stanley joined the ANE Board of Directors in 2016 as its first independent member. Jocelyn Rineer was promoted to Vice President, Field Operations.
Stanley has over 40 years of experience as the president or senior officer of insurance companies and agencies. He recently retired from United Valley Insurance Services, Inc., one of the nation's largest agency networks, where he was a director and COO. He continues in a consulting role with the company, assisting its member agencies in perpetuation and acquisitions.
Rineer joined ANE from E&K Agency, Inc. of Eatontown, NJ, where she served for 15 years as Commercial Lines Marketing Manager with responsibility for placing a wide variety of commercial lines risks with numerous standard and wholesale outlets. As Director of Field Services, Rineer was the primary contact for ANE's New Jersey members. A licensed producer, Rineer is also a Certified Insurance Counselor.
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.
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