Do Independent Agents Have A Future? NAILBA Speakers Say Yes
By
Dallas
The independent agency system definitely has a future, asserted Charles M. Kavitsky, senior vice president and chief marketing officer of Allianz Life Insurance Company, Minneapolis.
His remarks came during a special press-only “CEO interview” at the annual meeting here of National Association of Independent Life Brokerage Agencies, McLean, Va.
People who predict the agency system will collapse within the next 10 years “dont understand what the (agency) people do” in their client relationships, he maintained.
The professional agent influences people to act, he said, and “they sell (insurance) for the need,” not as a commodity.
Kavitsky said he and his company have “deep respect” for the brokerage and independent agency distribution channel. “Well bet the farm this way.”
At an earlier press-only conference, Ken Olson offered similarly strong support for the brokerage system. “Were completely committed to independent brokerage,” said the senior vice president and national sales manager of Zurich Life, Long Grove, Ill.
Especially in the last nine months, Olson said, Zurich has been operating at a high activity level to align itself with the independent agent. “Were looking for events of impact,” he said, “and were looking to create events of impact with the agent.”
In particular, the company is concentrating more on offering “solutions,” he said, and to do that via “packaging.” In addition, although it continues to sell term insurance, it is seeking to expand its permanent life sales. In fact, Olson said, Zurich is looking for “accelerated growth” in permanent and “moderate growth” in its term. Hence, the companys emphasis on “solutions” and “packaging.”
Some of the packaging may occur via creation of product families, he said. But it will also focus on using technology to assist the sale at the broker level–”how we quote, for instanceand how we show commuted values on our term product.”
Such brokerage-friendly comments resonated with the overall mood of the meeting. The association was celebrating its 20th year, so its leaders made a point of emphasizing how it, and the independent brokerage system, have gained industry acceptance and stature.
As Charles D. Rumbarger, chairman of AMG in McLean, Va., put it: “Weve gone from being unknown and disrespected to a position of influence.” Over 1000 attended the meeting.
Underscoring this message of longevity and increased prominence, the association presented awards to all 20 former NAILBA chairmen.