Where Will Your Agency Take You?

Transcription

Exclusivefocus
Fall 2011
An Official Publication of the National Association of Professional Allstate Agents, Inc.
Why Did NAPAA
Vote to Affiliate
with OPEIU?
Is Poor Morale
Rampant at Allstate?
Adjuster Speaks Out
Agents Who Earn
15% P&C Commissions
from Allstate:
IS IT FAIR?
Proposed Comp
and TPP Changes to
Cost Agents
Thousands
INCLUDES
White Collar Magazine
See SPECIAL Pull-out
Just in Time
For the Holidays—
Agents Get
SCROOGED
Historic Ballot Vote
Makes Big Splash
in Manhattan’s
Times Square
AMagazine
Magazinefor
forAllstate
AllstateAgency
AgencyOwners
Ownersand
andAllstate
AllstatePersonal
PersonalFinancial
FinancialRepresentatives
Representatives
AA
Magazine
for
Allstate
Agency
Owners
and
Allstate
Personal
Financial
Representatives
TWFG can help you find a bulls-eye solution!
We offer you a choice of 2 programs:
Exclusive Branch Agent Program GA Independent Agent Program
200+ National, Regional, Local
Carriers
No Production Requirements
$5,000,000 E&O Policy
80% Vested Interest in Book of
Business
Built-in “Buy-Sell Agreement”
Home Office Support (i.e. Licensing,
Appointments, Agency-Billing, Commission
Accounting)
Online Comparative Raters
80/20 Commission Split for New and
Renewal Policies
Contact One Of Our Branch Representatives
Today!
All States
Judy Rush
713-417-4493
Scott Sherrill
713-301-8076
MD/DC/VA
Barbara Mitchell
301-476-0476
LA/MS
Tony Voiron
504-322-7299
Low Start-Up Cost
Direct Online Quoting & Issuing
Direct Deposit of Commission
Personal Lines, Commercial, and
Life & Health
Operate Under Your Own Agency
Brand
Discounted Rate For Personal Lines
Comparative Rating System
Reduced Cost on Agency
Management System
No TWFG Production
Requirements
Contact One Of Our GA
Representatives Today!
Damon Dotson
713-416-5099
CA/NV/AZ/OR
Mark Bartlett
510-573-4745
or
Jon Merker
916-601-3846
Jean Bronaugh
Jennifer Divine
713-417-7882
214-991-1230
Sonja Schoen
713-259-9566
1201 Lake Woodlands Dr. Suite 4020
The Woodlands, TX 77380
800-596-8934
www.TWFG.com
!!!
GREAT
It’s how Allstate agents feel when we lend them capital. We like that.
With 80+ combined years of experience in agency lending, we know the outlook for
Allstate agents is great. At Capital Resources, we’ve originated more than $250 million
in Allstate loans. It’s our specialty. We offer key benefits you won’t find at every lender.
A highly efficient loan approval process. Lower down payments than most traditional
lenders. Competitive interest rates with a variety of repayment options. Solid, sizeable
resources. Sound good to you? Give us a call at 866-523-6641.
Your personalized lender
www.CapitalResources.com ©2011 Capital Resources. Allstate is a trademark of Allstate Insurance Company.
CA Residents: Loans made pursuant to a Department of Corporations California Finance Lenders License.
Exclusivefocus
FALL 2011
An Official Publication of the National Association of
Professional Allstate Agents, Inc.
Features
Business
19Are You Reaching Your Own
Growth Potential?
by Bill Gough
13
Agents: You are Not Alone
A Claim Adjuster’s Perspective
22
14
From Captive Allstate Agent to Independent Agent
by John Garrett, MBA, CPCU, LUTCF
26Planning to take TPP? Act
Before Comp Changes to 8%
16
Don’t Let the Lemons in Your Life Turn You into a Sourpuss
28
By Lezlee Liljenberg
By Dirk Beamer
18
Allstate Disputes “Dead Storage” Claim
32
30
Allstate Agents Kept in Dark about IA Commissions
31
KNOW YOUR EXIT STRATEGY: Is Your Office Ready To Sell?
(Part 4 of a 7 part series) By Ed Hogg
36Mr. Wilson, Tear Down These Walls!
By a Capital Region Agency Owner
Technology
24
3 Ways You Can Get More Referrals with Social Media Networking
Down on the Farm
by Dave Thorp
Counsel’s Corner
Building Your Brand
by Richard Shipley
38Evaluating Independent
Agency Options for Your
P&C Business
By Rex Hickling, CPCU, AIM
42Where Will Your Agency Take
You? Key tips on HOW to Buy
or Sell an agency
51
Harness the Power of Your Customers’ Testimonials
By Robyn Sharp
34Marching to the Beat of a Different Drummer… Use the Customizer as a Lead Line (Yes, REALLY!) By Scott Brodbeck, MCNE MCSE
44
Parody
46Scrooged, Allstate Style
Leveraging VoIP Features to Make Cloud Communications Work
for Your Agency by Kallen Gonzales
Cover photo: Leaders from NAPAA and OPEIU look on as secret ballot
count is tallied. Standing left to right Mike Goodwin, Jim Fish, Bob Isacsen,
Nicole Korkolis and Kevin Kistler.
A Magazine for Allstate Agency Owners and Allstate
Personal Financial Representatives
4 — Exclusivefocus
Departments
6
President’s Letter
11 Letters to NAPAA
53Membership Application
60NAPAA Market Place
Fall 2011
president’s letter
Why NAPAA Voted to Affiliate
with the Office and Professional Employees
International Union (OPEIU)
Your association’s relationship with
OPEIU dates back to 2002 when
NAPAA board member John Bryant
launched an all out effort to organize
and unionize the Allstate agency force.
As word got out, NAPAA members began to opine on the issue, both pro and
con. It became clear that choosing sides
would not be an easy choice for NAPAA.
Whether it adopted a pro-union stance
or an anti-union stance, it was certain to
displease half its membership base. As a
result, NAPAA chose to remain neutral,
but agreed to keep the agency force fully
informed so that agents could decide for
themselves, if and when the time came.
Shortly before the union cards were
distributed to the Allstate agency force,
Jim Fish, Hy Reichbach and John Bryant were terminated, angering many in
Exclusivefocus
National Association of
Professional Allstate Agents, Inc.
P.O. Box 7666
Gulfport, MS 39506-7666
Phone Toll Free (877) 627-2248
Toll Free Fax (866) 627-2232
Web Site www.napaausa.org
Email HQ@napaausa.org
Nonmembers: call 563-564-1800
Jim Fish
Executive Editor
P.O. Box 7666
Gulfport, MS 39506
Phone (877) 269-3474 • Fax (866) 627-2232
Exclusivefocus@napaausa.org
Nonmembers: call 563-564-1800
Exclusivefocus and DirectExpress are official publications of NAPAA - The National Association of
Professional Allstate Agents, Inc. No part of this publication may be reproduced without prior written per-
the agency force. The ensuing vote was
historic, as 6,000 Allstate agents signed
and returned their cards. Allstate was
caught off-guard by the breadth and
depth of the dissatisfaction among the
agents. The company, of course, claimed
the agents could not unionize because
they were ‘independent contractors’.
The fight then went to the National
Labor Relations Board (NLRB). The
Office and Professional Employees International Union (OPEIU) spent over
$150,000 defending the cause but, unfortunately, the NLRB voted 3 to 2 to
disapprove union recognition.
As a direct result of the agent dissatisfaction in the summer of 2002, the
company announced the formation of
the National Advisory Board (NAB) in
the spring of 2003. This effort to placate
mission of the publisher. It is the policy of this publication to reflect the professional thoughts and attitudes
of our members and to advance the professionalism of
the insurance industry to the ultimate benefit of the
insuring public.
The views expressed by NAPAA, or any of its positions relative to its activities and those of its members’
actions on behalf of this organization, are expressly those
of NAPAA, and do not reflect the views or the opinions of
Allstate Insurance Company, or any of its affiliates.
Letters to the Editor: All letters must include an
address and a daytime and evening phone number. We
reserve the right to edit letters for clarity and space.
This issue of Exclusivefocus magazine may contain
articles of interest submitted to NAPAA by outside authors. NAPAA is not responsible for the opinions, advice
or accuracy of any information provided therein.
NAPAA’s Mission Statement
NAPAA is dedicated to the success of Allstate
Exclusive Agency Owners and to advance the
independence and entrepreneurial spirit of our
members.
NAPAA’s Goals
Our goals are subject to alteration, influenced
by a constantly changing environment and the
the agency force soon became the butt of
jokes among rank and file agents because
the representatives were hand-picked
by management for their “my company
right or wrong” attitudes. I am confident
that Jim Fish and John Bryant would
have never been asked to serve because
of their outspokenness and their sense of
fairness, which would be key ingredients
for success in a group like the NAB. Instead, the reps were spoon-fed corporate
pabulum and led down the yellow brick
road; a road that, as we all know, has led
us nowhere.
From that point forward, Allstate
systematically initiated more and more
employee-like controls, which now far
exceed the controls they exercised when
President continued on page 8
needs and wishes of our members.
NAPAA encourages its members to actively
participate in the process of defining and refining
our Mission, Goals and Positions.
Our General Goals:
• To provide an organization specifically tailored to benefit Allstate Exclusive Agents
• Monitor legislative and legal issues pertinent
to Agents and their clients
• Maintain an Action Fund to support issues
beneficial to agents and clients
• Provide reliable communications on all issues
that affect Agents and the ability to call upon our
members to act
• Provide Agents with a distinct voice on issues
that affect them, continually exploring options
and solutions
• Make tools and resources available for
members in an effort to increase agency value
and success.
For more information,
please visit
www.napaausa.org
Fall 2011
“Is your agency
planted in good soil,
supported wIth deep roots and
really growing?”
Scan with smartphone to
learn how ASNOA can help
your business grow.
http://asnoa.com/video/
mobile/index.html
• More control over your future with
Increased Independence
• 70% total premium growth in 2010
• Increase your revenue faster
than you ever thought possible
• A Proven Network of Success
• Secure Carrier Markets
• A stellar support system for
Agents
Fall Independent
2011
“I was looking for a variety of insurance
products from National & Regional carriers
plus more control over my future. I have seen
phenomenal growth with ASNOA when most
agencies are going backwards in revenue.”
Christine Newton, Chesterton, IN
South Shore Insurance
We are Insurance Professionals
helping other Insurance Professionals
realize their full business potential.
See how the ASNOA Advantage can
help your agency grow. Watch the
video at: www.asnoa.com/video
®
www.asnoa.com
Exclusivefocus — 7
© Copyright 2011
the majority of Agents were employees.
Because of Allstate’s heavy-handed
management style, led by an incompetent leadership team, the majority of
agents have been fearful to join NAPAA,
even though many support us with substantial anonymous donations.
But then, that is the company’s intent;
to dissuade agents from joining by using fear and innuendo. Thankfully, most
agents recognize that we are the only organization dedicated to the well-being of
the Allstate agent.
Even though NAPAA continues
to grow its membership, we are being
hampered by Allstate’s fetish for terminating agents, as if it will somehow
cure the all ills the company has brought
upon itself. If you’ve been around for
ten years or more, you know what I’m
talking about.
In markets where there were once
twenty or more agents, only a handful remain in many cases. In the not-so-distant
past Allstate could boast having more
than 14,000 agents. Today, NAPAA estimates the number of individuals holding Allstate contracts at 9,500 or less, yet
the termination process continues. These
statistics are of enormous concern to me
and the NAPAA Board of Directors.
For that reason and more, NAPAA
needed a new approach to deal with the
“800 Pound Gorilla” in the room, whose
leadership is targeting the agency force
as its latest scapegoat to cover-up its own
failed policies.
In order to find a solution, NAPAA
again reached out in November 2010
to Michael Goodwin, President of
OPEIU, to determine if together, we
could create a strategy that would work
to the benefit of all stakeholders, including the Allstate agent. Over the years,
as corporate America has developed
strategies of cutting and shifting costs,
unions have also found themselves with
shrinking memberships, causing less
negotiating clout. So, NAPAA and
OPEIU working together is a win-win
for all our constituents.
With corporate American ethics eroding, a new class of employee was developed called the “independent contractor”
model. This new approach, authorized by
the IRS of the past, allows corporations
to eliminate employees and their benefit
expenses – which increases the corporate
bottom line and the short-term value of
executive stock options.
Unfortunately, disenfranchising employees is having a devastating effect
on our entire economy. Middle class
income and benefits are systematically
being eroded to the point where disposable income for the middle class is at a
40-year low. Now Allstate wants to take
more of your income and then your career. Enough!
By now, most of you know that
NAPAA members were polled via secret ballot this past summer and they
voted 94.4% in favor of affiliating with
OPEIU. The vote reinforced what
NAPAA already knew – that the morale
among the Allstate agency force is at a
record low.
Your NAPAA leadership has spent an
enormous amount of time with OPEIU
President Michael Goodwin and his entire executive team. Michael has been an
active employee of OPEIU for 50 years
and has been their elected president for
the last 16. His leadership skills, intellect, credibility and integrity add a tremendous amount of intellectual capital
that can assist NAPAA in its quest to
secure your livelihood and create true
parity when dealing with Allstate.
As of September 1, 2011, our members have been added to OPEIU’s existPresident continued on page 10
NAPAA Board of Directors 2011-2012
Administrative Offices
Jim Fish, Executive Director
P. O. Box 7666
Gulfport, MS  39506
Ph # 877-269-3474
Nonmembers: Call 563-564-1800
ExecutiveDirector@napaausa.org
Nancy Fish, Association Manager
P.O. Box 7666
Gulfport, MS 39506
Ph #877-627-2248
Nonmembers: Call 563-564-1800
Fax #866-627-2232
hq@napaausa.org
Please email headquarters@
napaausa.org to contact our officers
and directors. Include the name of
the person in the subject line.
OFFICERS
Bob Isacsen
President
Hoboken, NJ
Judy Ost
Secretary
Battleground, WA
Dale Revels
Immediate Past President
Kissimmee, FL
DIRECTORS
Al Bullard, Floral Park, NY
Ed Hogg, Fairfax, VA
Debe Campos-Fleenor
Executive Vice President
Tucson, AZ
Greg Thompson, Burleson, TX
Lezlee Liljenberg, Arlington, TX
Ismael Melendez, Jr.
Treasurer
Federal Way, WA
Fall 2011
TAKING YOU
WHERE BANKS
WON’T.
• ACQUIRE AN AGENCY
• INVEST IN GROWTH
• SELL YOUR BUSINESS
Oak Street Funding can help you buy an agency with minimal out-ofpocket cost, by leveraging the power of its commission stream.
Whether you need $10,000 or $10,000,000, we’ll customize a loan for
your needs.
When banks won’t help, Oak Street Funding will. Call us now
or download our free white paper on buying a business at
oakstreetfunding.com/buy. We’re ready to help you spread your wings.
1-866-OAK FUND | oakstreetfunding.com/Buy
FallLoans
2011
and lines of credit subject to approval. California residents: Loans made pursuant
to a Department of Corporations California Finance Lenders License.
ing 125,000 members along with the 11
million members of the AFL, CIO and
CLC. While we won’t formally change
our name, we will be known as OPEIU
Guild 17.
We have been able to affiliate with
OPEIU as Guild 17 without any additional increase to your existing NAPAA
membership dues. In fact, as part of becoming part of the OPEIU family, all
NAPAA members now enjoy the following additional benefits without further cost.
As you review the extensive benefit
package you will find that they will offset the majority of your existing NAPAA
dues.
to two towing service calls per year (valued at up to $100 each). Applicable to
all family members living in the member
household.
Errors & Omissions Benefit – E&O
deductible subsidy of 20% of the deductible for any E&O claim up to $500 per
year.
Scholarship Programs – Eligibility
for up to $6,000 in scholarships and participation in OPEIU’s Summer Camp
program for children between ages 13
and 16.
Continuing Education Benefit – Up
to $50 reimbursement for continuing
education every two years.
Towing/Service Calls Benefit – Up
WellCard Health Family Discount
Plan – Includes in-network doctor visits, dental, prescription drugs, vision care
and more.
Identity Theft Service – Identity
theft restoration for the entire family.
Welcome Home – a real estate commission rebate program that includes
top-notch companies Century 21, Coldwell Banker and Sotheby’s.
Eligibility for all AFL-CIO membership benefits – including a MasterCard with one of the nation’s most competitive interest rates.
PerksCard – a national discount savings program.
OPEIU publications – including
White Collar magazine, a copy of which
accompanies this issue of Exclusivefocus.
NAPAA will remain an autonomous association and continue to manage, administer and direct its own business. OPEIU
will serve as a support group for NAPAA.
We are also being granted membership
in all State Federations of Labor as well
as the inclusion of five delegates to the
OPEIU’s Triennial Conventions.
In addition to the affirmative membership vote of 94.4%, we have received
over 200 new membership applications
since launching the affiliation initiative.
Please join with us to meet our goal of
10,000 members. We are all here for you.
In Solidarity,
Bob Isacsen
NAPAA President
Always a cell phone call away:
347-572-4698
Fall 2011
letters to NAPAA
Congratulations on the affiliation with
OPEIU! I suggested it many years ago
and am proud that someone, somewhere,
took the bull by the horns and did it.
Well done NAPAA.
Rich Gibbons
Past President and founder
Canadian State Farm Agents Association, Inc.
and you’re all on fire. Keep up the good
work! I’ve been keeping up with the Allstate debacle. I’ve listened to all of your
radio interviews regarding the OPEIU
guild, and I must say that you are a natural for broadcasting.
.............
.............
Just thought I’d relate a family member’s auto claim experience with Progressive:
Please remove my name from your
membership. I refuse to be involved with
any union-associated organization.
One of my extended family members,
who has a not-so-clean driving record
and has his insurance with Progressive,
had an at-fault car accident last Friday
evening. Thankfully, no one was injured,
but the car had to be towed. He contacted Progressive on Saturday and initiated his claim. He couldn’t get to the
tow yard to collect his car until the following Monday, just before closing time.
On Tuesday, he contacted Progressive to
get the repair shop info. He set an appointment for the next day so an adjuster
could assess the damage. He delivered
the car to the repair shop at 8:30 a.m. on
Wednesday. By 1:00 o’clock, the field adjuster had left him a message informing
him that the vehicle was totaled and they
would not be repairing it.
I drove my relative back to the repair
shop to collect the few incidental items
he had left in the car. The field adjuster
was awesome! Very concerned and sympathetic; he spent 30 minutes reviewing
the damage assessment and explained
why they’d made their decision to total
the car. The field adjuster told my relative to contact the inside adjuster for instructions on how to collect payment for
his vehicle.
My relative contacted the inside adjuster later that evening and was told he
could take his vehicle title and ID to the
Progressive office, sign the required docs
and collect his payment. By 1:30 p.m.
on Thursday, my relative had a check in
hand for the ACV of his car, the amount
for which was more than he expected to
receive.
Editor’s response: When the OPEIU affiliation came up, we knew it would be a hotbutton issue for NAPAA members. That led
us to the decision to poll the membership by
means of a secret ballot. Had the vote been
close, the NAPAA Board of Directors likely
would have had reservations about proceeding. But, as you know, the membership
voted overwhelmingly in favor of affiliating with OPEIU by a margin of 94.4% in
favor vs. 5.6% against. This mandate was
not something NAPAA could ignore.
These are extremely tough times for most
Allstate agents. Among other things, the
commission structure is under assault and
agent jobs are being threatened at every
turn. And while you may not agree with
the concept of organized labor, how else can
everyday, hard-working working agents
protect themselves from unfettered corporate
abuse? The answer may lie in the following proverb: “The enemy of my enemy is my
friend.”
OPEIU has already proven that it is a
willing and able partner; it is fully focused
on obtaining fair treatment for working
agents, which has been the goal of NAPAA
all along. I hope you consider joining us
again. Our mission has not changed; we
have only changed the vehicle that will be
used to transport us to our destination.
.............
I’ve been keeping up with you guys,
Fall 2011
This is just another example of why
Allstate customers are leaving in droves.
The process was simple, easy, fair, hasslefree, and quick. In less than a week’s time
my relative had a settled claim for a totaled car.
As a side note; as I was waiting in the
collision repair shop office while the adjuster and my relative were talking, I noticed they had in-boxes for State Farm,
Farmers, and Progressive, so I asked her
if they worked with Allstate. She grimaced and asked if the other party was
an Allstate insured. I told her no, but
that it didn’t matter because my relative
was the at-fault driver. I told her I was
just curious. When she didn’t respond, I
said, “I hear they’re just a little too difficult to work with.” She simply nodded
her head in agreement.
I’m truly amazed at how simple and
easy this process was. How is it that Progressive can do it and we can’t? Granted, there was no bodily injury involved,
which is a totally different matter. But
when there is property damage only, why
does our process take so long and require
numerous contacts that usually end up
involving the agency? Most times, Allstate’s processes are utterly mind-boggling!
PS: “Yay” for the union affiliation!
.............
I see the share price has dropped significantly the last week or so! Your affiliation with OPEIU definitely has their attention now. Keep your head up for some
tactical maneuvering by them. They will
begin a retention campaign and will do
anything to derail NAPAA. The best
part is that they will now be playing with
a powerful union. Congrats!
.............
Dear Jim,
I just wanted to take a moment to let
you know how proud I am of the job
letters to NAPAA
you’ve done, and are doing, leading the
agents.
I will never forget the early days when
Jim Cason and I and a few others got together to form the association and how
much it frightened the company then. I
can’t imagine what their reaction will be
now...but you have the force of law on
your side, so I hope their way of isolating
the “bad guys” won’t lead to additional
problems for you.
When they defeated our lawsuit alleging age discrimination back in the
‘90’s, I realized how Machiavellian they
really are. And, I have to be honest, am
still glad I sold in 2001 because I was
worn out. But I’m glad that there are
others, like you, who have continued
the good fight, in spite of what they did
to you and your agency, or perhaps, because of it.
I know how busy you must be and I
don’t expect a reply, but felt in my heart
the need to let you know how many of us
there are who have watched your progress and applauded, if in a somewhat
muted manner.
Frank Piatt
.............
Editor’s comment: The following letter
has been edited for punctuation, spelling
and capitalization.
Here is my latest missive sent to the
BOD of Allstate.
Best regards,
Neil X. Hendsey
Dear Sirs:
At one time, I was the holder of 12,000
shares of Allstate Corporation. Over the
years, I have sold all shares except for a
token 25 shares, which I keep so as to
vote them against Tom Wilson, who is
systematically destroying value for all
Allstate shareholders.
I am a retired Allstate agent of 39+
years, who retired 13 years ago. At one
time, every Allstate agent had, and felt,
a deep commitment to Allstate. Allstate
was “FAMILY”. In my retirement, I travel all over the United States and Canada
pursuing my hobby of fishing. I always
make it a point to stop into the Allstate
offices and converse with the agents. As
you are apparently not aware, the morale
of your employees is close to zero. Almost
without question, 95% of the agents are
grossly dissatisfied with Tom Wilson. The
recent firing of Joe Lacher was the result
of even him “bashing” Mr. Wilson. Don’t
believe me? Do your own research! Tom
Wilson has had a fair chance to turn Allstate around and has failed miserably. The
stock is down approximately 60%, and
we’ve lost over 1 million Allstate clients.
These are undisputed facts.
I strongly recommend you directors
remove Mr. Wilson, lest you become
complicit in the systematic destruction
of our once-great company. I bear no ill
will against Mr. Wilson, but I strongly
feel he is not the man to run our company. I would appreciate your feelings on
this matter.
.............
Allstate is sending out postcards to
all monoline customers. The postcard is
made to look urgent and instructs customers to call me about their policy. We
are trying to make lemonade out of rotten lemons with these calls, but the postcards are being sent to deceased spouses
and parents, which is upsetting people.
Also, it’s being sent right before the ALI
survey, so not only are we calling to get
people to fill out the survey, but there’s
a tremendous amount of damage control
we have to do. Frankly, it has been awful.
Thankfully, I read to the very bottom of
the email that was sent to us the day before the postcard mailing. At the bottom
it said you had to opt out of the telemarketing! Aha! They were going to telemarket these poor people! In the past,
customers have been furious about those
kinds of calls. Good thing I looked at the
email when I did because there was only
about a four hour window to opt out.
Unfortunately, there was no opportunity
to opt out of the mailing itself.
.............
I admire you for your tenacity, commitment and perseverance through all
these difficult years, especially facing
the indifference and apathy displayed by
both management and the agency force.
After 22 years of representing this company, I will be accepting another calling
come next spring; I no longer retain the
kind of commitment you two maintain,
nor do I have any more patience with
those folks in Northbrook. I am, however, thankful for the first decade when
this company supported me. I am glad
to know people like you. Please keep on
doing what you do best and God bless
you both.
Continued on page 54.
Sincerely yours,
Neil X. Hendsey Fall 2011
feature
Agents: You are Not Alone
A Claim Adjuster’s Perspective
I recently received an e-mail from a
fellow adjuster about NAPAA. The article I was sent was about NAPAA polling its members to determine if they
should become a guild with the Office
and Professional Employees International Union. After reading the article, I
became curious and decided to find out
more about what was going on. I finally
was able to make contact with NAPAA
Executive Director Jim Fish. We spoke
on the phone and I learned that the
agents are treated the same as the adjusters at Allstate. Before I go any further, I
just want to point out that both agents
and adjusters want to see the company
succeed and prosper. But any company’s
long-term success and prosperity can
only be accomplished when workers are
fairly treated.
Here is the rub for us adjusters, which
I believe will strike a common chord
with the agency force. First, the company has decided that the workdays
and hours that were mutually agreed to
when we were hired are no longer applicable. Management has decided to
Fall 2011
arbitrarily change this. When asked why,
the standard answer is that the “business environment has changed”. These
days, management has decided that we
should work the days and hours that they
choose, which includes working on major holidays. This means that some field
adjusters will be working on Thanksgiving Day, Christmas Eve and Christmas
Day. More and more, the adjusters are
feeling like Bob Cratchit at the hands of
Ebenezer Scrooge. It’s pretty clear that
while Tom Wilson and company managers are dining with friends and family on
Christmas and Thanksgiving, there is no
thought given to the personal lives of the
adjusters and their families. After learning how the agents are treated, I’ve concluded that people who work for Allstate
do not have a personal life.
I would like to note here that the adjusters I know are very unhappy with
the decisions that have been made. We
all know the company is trying to get
and retain customers, but the one thing
management has forgotten about is that
employees also need to be happy. Work-
ing employees to death by giving them
more work than they can possibly do is
not a good thing. Everything we do is
tracked by an arbitrary number, which is
basically used for wage control. What’s
worse is that they continually move our
goals, making it more difficult to get a
decent raise the following year. Now
customer satisfaction is a big part of the
goal. If you don’t meet the company’s
expected goal, you get no raise and your
401k is adversely affected. The adjusters want to do the right thing and make
the customer happy, but in some cases
it is not possible. There are many negatives to overcome as we must follow the
policy wording and claim guidelines, not
to mention complaints about high rates,
which are completely out of our control.
Now some claim manager has decided
to institute a new goal that requires inspection of damage within 48 hours of
first notice of loss. On the surface, this
appears to be a great thing for the customer, right? The problem is that the
company let go of so many people while
downsizing, there is no longer enough
personnel to do this. So now assignments
are piled on the adjusters without regard
to the proper amount of time it takes to
handle them. Again, management assigns an arbitrary amount of time for
each assignment, which is often woefully
inadequate. Thus, if an adjuster cannot
do the inspection and has to turn it back
in for reassignment, it is counted against
him and can adversely affect his pay. I
won’t even get into the issues of overtime
and how this affects us.
So agents, we adjusters feel your pain.
We live it every day, just like you. I hope
things get better for all of us. But to tell
the truth, I don’t expect this for some
time or at least until someone in management wakes up and smells the coffee.
I just hope it’s not too late. Ef
feature
From Captive Allstate Agent
to Independent Agent
by John Garrett, MBA, CPCU, LUTCF
It’s been two years now since I finalized my Plan B. Getting to that point
took me another year as I formalized the
direction I wanted to pursue as well as
sell my agency. Making the decision to
leave Allstate may not be the best option for you, but if it is, be sure that you
know what you want to do next and then
research all your options. First and foremost, it is important to realize that your
decision should be based on hard facts,
not pure emotion. While it easy to fall
into an emotional trap, there are others
who depend on you for financial support,
such as family and your agency staff. That
is why it is crucial to consider the impact
your decision will have upon them. In
my case, I was fortunate to have the extra
time three years ago to plot the direction
I wanted to go. Things are much different today, so you will have to make your
decision much quicker than I did.
People harbor lots of fears, one of
which is the fear of the unknown. It’s
no secret that many agents are dissatisfied with the current state of affairs at
Allstate. If you are among them, the
first thing you need to do is make an
informed, objective decision about your
future, which means purging your fear of
the unknown. Complacency can complicate matters too. If you’ve become complacent working and knowing Allstate
like the back of your hand, making a
decision on what to do next can be overwhelming. When finalizing my Plan B,
my wife and I found a little plaque with
the inscription, “Sometimes you just have
to take the leap, and build your wings on
the way down.” That saying was true
then and is still true today as we continue
to fine-tune our strategies. Your Plan B
will provide a path for you to follow, but
it does not always envision all the bumps
and turns along the way, which is why we
remain flexible and open to change as we
continue to “build our wings on the way
down.” In our case, we had to learn to
stop second-guessing ourselves and stay
focused on our objectives. In sports this
is called “keeping your eye on the ball.”
Distractions and self-doubt can lead to
undue stress and conflict, which can disrupt your overall business plan and affect
your personal health.
For me, making the decision to leave
Allstate was difficult, but looking back,
I’m sorry I didn’t do it sooner. I’m enjoying the fact that I am truly independent
and that I’m building something for myself and my family that cannot be taken
away by corporate directive or to make
someone else’s bonus number.
While exploring my options three
years ago, I had to be honest with myself and set realistic expectations. At first
I thought I’d write some books or teach
at the college level. I was 57 years old
and had been with Allstate for 21 years
and had garnered many awards including Honor Ring and National Champions several times and was consistently
recognized as being in the top 10% in
our region for retention and profitability.
Then ALI came along and my score was
under 70, which was a concern for me.
The ever-escalating RFG goals also concerned me – especially for AFS – and I
was not looking forward to more of the
same for the rest of my career.
In 2000, the company converted its
employee agents to the EA contract and
froze our pension plan. They touted the
fact that we could retire someday by selling our book of business. I grew increasingly uncomfortable because it seemed
that this opportunity was quickly fading away. In retrospect, I am glad I sold
when I did.
The bottom line is that I am very experienced in the Property and Casualty
area. I have felt a lot of personal satisfaction in helping my clients resolve their
insurance needs as well being there for
them in their time of need. All the reasons I felt the insurance industry was the
right industry for me 25 years ago still
Fall 2011
exist today. And while I hoped to write
some books or teach at the college level,
I also had to be realistic. It would not be
easy to hop onto the book tour circuit or
even find employment as an entry-level
adjunct professor and was beyond the
age of desirability for most companies, so
my direction became clear. I was in the
right industry, but just with the wrong
company. Insurance was in my blood,
but it was not the blue blood of Allstate.
Having established that insurance was
the right fit for me, I determined that
would have to seek a different mix of
business than I did with Allstate. At 57
years old, I didn’t have another 20 years
to build a new book of business based on
personal lines. Besides my age, I am also
constrained from going after my former
Allstate clients because of the 3 year nonsolicitation agreement I signed with the
buyer of my Allstate agency. Fortunately
for me, I was actively involved in the business community for 25 years and was the
past president of my local Chamber of
Commerce. So even though I wasn’t able
to write a lot commercial insurance in my
Allstate career, I made a lot of contacts
that would prove invaluable later on. So,
considering my circumstances and limitations, the commercial market held the
greatest promise for me. Premiums were
higher, which would allow me to build my
premium base faster – much faster than I
could writing renters policies.
Feeling I needed more knowledge to
compete in this area of the business, I
decided to complete the five remaining
courses required to complete my Chartered Property Casualty Underwriter
Designation (CPCU), which I did as I
was selling my agency and the year after. If you don’t have the time to complete the coursework needed to attain a
CPCU designation, taking a few courses
in commercial insurance would help your
comfort level immensely. There are also
additional programs available to further
your base of knowledge in the insurance
industry, which you may want to consider.
Knowing that my goal was to build a
new book of business based on commercial insurance and that I was building the
confidence needed to sell it by gaining the
knowledge from the CPCU program, the
next consideration would be the vehicle I
Fall 2011
would use to achieve my goals.
I checked with friends in the independent agency world and spent 6 months
in a large independent agency where I
learned the basics of the independent side
of the business. Then I looked into starting a scratch independent agency of my
own in order to earn 100% of the commissions. I did a lot of research and discovered it would take too many years to
get the carriers I needed to accomplish my
goals. Securing carriers one by one would
be a full time job, leaving little time to secure the clients needed to keep the carriers
happy and my contracts in place, which
seemed too much like the RFG program
at Allstate. Then I started looking at aggregators/cluster groups who already had
existing contracts with the carriers I needed. This was a relief to me and solved the
issue of securing individual contracts on
my own. While I had to give up part of
my commissions to affiliate with them, it
was worth it to me because they had the
companies I needed right away.
The good news about the independent
side is that commissions are higher than
the captive side. If you didn’t already
know it, the Allstate IA contract pays
15% commission and so does Encompass. Other companies have a similar
commission scale. So, if you have to give
up part of the commission to an aggregator, you’re still further ahead – and have
fewer headaches – than you would with
Allstate. In addition, aggregators have
the necessary software, backroom support and management/marketing systems needed to effectively run an independent agency.
Joining a professional independent
agent association, like the Independent
Insurance Agents of America (The big
“I” and Trusted Choice), allows you to
access additional resources to help you
become more successful in obtaining
your goals as an independent agency.
After researching many different really
great aggregators, I found one in which
both founders had been very successful
with American Family Insurance. They
knew what it was like to convert from
captive agent to independent. Their
knowledge and assistance provided me
with the tools necessary to make the
transition successfully. Now I had the ve-
hicle I needed to help me reach my goals.
One of the fondest memories I have of
Allstate was when I was a new agent back
in 1987. I was so impressed by the camaraderie and willingness of other agents
to help answer questions or give you the
direction needed to become successful.
This was a great support system providing a strong sense of family and moral
support. These bonds helped foster many
friendships that developed – much like
being a member of NAPAA does today.
The days of camaraderie at Allstate are
now all but gone because agents are kept
separated for the most part, so it is great
that NAPAA exists; they will help if you
want to be more successful at Allstate,
or will point you in the right direction if
you feel it’s your time to move on.
All said and done, my bottom line is
that I am, like so many have written, very
satisfied with my decision and the direction that I have taken. It’s refreshing that
I now have carrier reps coming in and
working with me to develop my business
instead of being threatened with the loss
of my agency because I didn’t make my
Expected Results. Today I can quote just
about anyone or any type of business with
closing ratios in the 80-90% range, versus
the 20-30% range I was accustomed to at
Allstate. Now if a client is going to get a
large increase through one of my carriers, I know in advance and I can remarket
their policies with other carriers and keep
them instead of losing them.
With any change comes uncertainty
and although the road I’ve taken has had
some bumps and turns, it’s been a lot
straighter than what I experienced in the
past. My advice is to look to the relationships you have built to help guide you
to where you want to go. Look to former Allstate agents and members, past
and present, of NAPAA to give you the
advice you need to formalize and implement your Plan B, if that’s the route you
choose to take. Ef
John Garrett is President of Coverall Insurance Services, Inc., Burr Ridge, IL 60527,
an affiliate of the Agent Support Network of
America (ASNOA). He is Vice President of
the Chicago Chapter of the CPCU Society,
and can be reached via email at JGarrett@
asnoa.net for further information.
feature
Don’t Let the Lemons in Your Life
Turn You into a Sourpuss
By Lezlee Liljenberg
•
•
•
•
•
Independent Contractor
vs. Employee
Low Morale
Union vs. Guild
Cutting Compensation
Terminating Agents
As Allstate agency owners, we are
bombarded with lots of negatives. It
is tough out there, but really, tell me if
there is anyone you know who isn’t facing problems right now? Being bitter is
not the answer, but being a little pissed
probably helps. It is what you do with
the negative energy that matters! Take
it, bottle it, and be determined that you
will beat the odds. If you do this, you will
grow and find other avenues where you
can win and prosper.
Am I a Pollyanna? No way – that is
one thing I could never be accused of.
All my life, I have learned to take the
stuff that really bothers me and use it to
fuel my fire. Everyone’s fire is different.
However, if you take the energy that it
takes to be mad at Allstate, your FSL or
whoever else, and get out to network and
market your business, you will be 110%
more productive.
Of all people, I have reason to be angry
at Allstate. This last year my husband, a
great manager with Allstate, was released
from employment after 23 years. He was
amazingly successful with the company. I
would be proud to accomplish all he did
at Allstate, and I will continue to strive
to do just that.
Do you want to know why he was let
go? Because he did not recruit enough
new agents into the Allstate fold. The
man actually had to look at himself in
the mirror and know that he was not
placing someone’s savings, marriage and,
at times, their entire retirement in jeopardy. Though we are struggling through
losing our health insurance, company
car, and a second income – which we
greatly depended on to reinvest
into the agencies – we are doing fine. And what is really
awesome is that I will not
be a widow at an early
age. My husband is
starting a new life and
the unbelievable stress
is gone. We all need to
remember these managers are
human too – though at times they may
appear as flesh-eating Zombies. This is
not easy on them either – they are trying
to hold onto their careers just as we are.
My husband had been demoted into
the position of the “hatchet man” for our
territory. On those days when you think
you are being penalized, just think about
these managers who get the wonderful
opportunity to terminate the agents they
hired. They are releasing agents they
have been friends with, gone through
births, graduations, weddings and even
death. Now they “have” to destroy their
careers. In one week, the person I love
and admire most in this world had the
responsibility of terminating 6 agents
within a two-mile radius of my agency.
Talk about a bloodletting! At the same
time, the manager who had just released
my husband from employment forced
me to reopen a second location, which
will be the subject of a future article.
Let’s get one thing straight; there
are agents who need to be terminated.
You are only kidding yourself if you believe there is any sales job in the world
that you’ll keep if you do not produce.
Agents who have sat back, not produced
or grown, and lived off of residuals are
the exact people who have helped cause
the pressure we all face today. If you are
one of those agents, then you may need
to get out or decide to grow. As a
business owner, you are a marketer, a salesperson, an
employer, manager, HR,
a counselor and on any
given day, these responsibilities change in order
of necessity!
I am not defending or
supporting either side. Just like
everyone else, I struggle too, but I have
chosen to figure out other ways to bring
in premium and I am still learning. One
way to accomplish this, at least in my
region, is by taking full advantage of all
of the commercial brokerage houses and
Allstate products available. Commercial
is a huge learning curve and, admittedly,
is an investment in my agency, staff and
myself. Yet, just like any business, you
must be flexible and open other avenues
available to you. Invest in your business
to grow in other ways rather than just
staying in the same mindset. There really are other insurance products out there
besides home and auto! The commercial
opportunity is one area where you are
not as limited, so take advantage of it.
Sure, Allstate is making us do things
we do not want to do, but I have never
worked for any company that is any different. Suck it up – do what they want,
rather than fighting them – and use the
rest of that energy to Kick some Butt! Ef
Lezlee Liljenberg owns two agencies in Arlington, TX. She recently joined NAPAA as
a member and serves on the NAPAA Board
of Directors.
Fall 2011
Fall 2011
claims
Insurer [Allstate] Disputes
“Dead Storage” Claim
In February 2002, Josh Rogers purchased a 1978 Chevy Sierra pickup
truck. He secured a temporary license
plate and automobile insurance coverage
for the vehicle. Soon after the purchase,
the electric choke stopped working, but
the truck was still operable. Josh continued to drive it until March, when the
transmission failed. At this point, Josh
cancelled his insurance coverage. His
plan was to buy a new transmission and
repair the truck himself with the help of
a friend, John Burns.
Josh lived with his mother and stepfather, Betty and David Rogers. He
parked the truck behind their residence,
then later moved it to their barn. In order to move it, he had to start the truck
so that he could use the power steering
and brakes.
In April, Josh and John were working
on the truck. Josh poured some gasoline
into the carburetor to prime it. When
the truck didn’t start, John poured more
gasoline into the carburetor and Josh
again attempted to start the truck. At
this point, flames ignited and John was
severely burned.
The Rogerses owned a Deluxe Mobilehome Policy issued by Allstate Insurance Company. The Burnses were
insured under an uninsured motorist
policy issued by American Family Insurance Company. The Burnses filed
a complaint against Josh, Allstate and
American Family, seeking damages for
John’s injuries. Allstate denied coverage,
claiming that the truck fell under the
motor vehicle exclusion set forth in the
policy. The Burnses and American Family argued that Josh’s truck fell within an
exception to the motor vehicle exclusion
because the vehicle had been placed in
“dead storage.” The trial court found that
Allstate had a duty to defend and indem18 — Exclusivefocus
nify Josh Rogers. Allstate appealed.
The insurance provisions at issue were
in the Family Liability Protection portion of the Allstate policy. As a resident
relative under the care of the Rogerses,
Josh was an “insured person.” The motor
vehicle exclusion read: “We do not cover
bodily injury or property damage arising
out of the ownership, operation, maintenance, use, occupancy, renting, loaning,
entrusting, loading or unloading of any
motorized land vehicle or trailer.” The
“dead storage” exception to the exclusion
read: “This exclusion does not apply to:
a) a motorized land vehicle in dead storage or used exclusively on the residence
premises.” The policy did not define
“dead storage” or “maintenance.”
The Allstate policy also contained a
section titled “Guest Medical Protection Coverage” that provided a limit of
liability of $1,000 per person for injuries
sustained when the person was “on the
insured premises with the permission of
an insured person.” This coverage was
subject to the same motor vehicle exclusion and exception to the exclusion.
On appeal, Allstate argued that Josh’s
truck was not in “dead storage” at the
time of the accident within the meaning
of the policy, and that therefore the motor vehicle exclusion applied. The Court
of Appeals of Indiana disagreed. It found
that the facts supported a finding that
the truck was indeed in “dead storage.”
It was no longer operable, licensed, registered, or insured.
When it stopped working, Josh removed the truck from any “active daily
use,” and it remained “virtually untouched” for almost two months. When
it was moved, it was moved only on the
Rogerses’ property. Thus, the truck was
in “dead storage.”
Allstate also argued that the exclu-
sion should apply because the evidence
established that Josh was “maintaining”
the truck within the meaning of the
policy. In light of the court’s finding that
the “dead storage” exception applied,
this was a moot point. Nevertheless, the
court found that Josh and John were not
“maintaining” the vehicle because they
were not trying to “preserve or keep (it)
in an existing state or condition,” or acting “to prevent a decline, lapse, or cessation from that state or condition.”
Finally, Allstate argued that the exception to the exclusion did not apply
because the truck was not “used exclusively on the residence premises” within
the meaning of the policy. According to
Allstate, the term “exclusively” meant
that the vehicle had to be used on the
residence premises throughout the entire
duration of the policy period. The court
found that the policy language was not
that restrictive, and that the truck’s status
of particular use could fluctuate over the
policy period.
The court concluded that the trial
court properly found that at the time
of the accident, Josh’s truck was in dead
storage within the meaning of the policy
and that the vehicle was exclusively used
on the premises. Accordingly, the exception to the motor vehicle exclusion applied, and Allstate had a duty to defend
and indemnify Josh.
The judgment of the trial court was affirmed. Ef
Allstate Insurance Company vs. Burns-No.
88A01-0502-CV-58-Court of Appeals of
Indiana-November 29, 2005-837 North
Eastern Reporter 2d 645
Reprinted from the In-Action Newsletter
published by Producer Online (Volume 57,
September 2011).
Fall 2011
sales and marketing
Are You Reaching Your Own
Growth Potential?
by Bill Gough
Jim Rohn, the late, great American
business philosopher, once said “Never
wish that life was easier, wish that you
were better.” These words are so elegant,
yet so simple. If I were to paraphrase him
and describe what his words mean to me,
it would be to “quit trying to make your
work, your business, or your success eas-
Fall 2011
ier, or easier to come by. Make yourself a
better person and you will find the success that you want.”
Although I never had an opportunity
to meet Jim Rohn personally, I have long
considered him among my most favorite and perhaps the best, most influential
business philosopher in my life. Over
the years, I’ve read his books, filled out
his workbooks, listened to his CDs, and
more. And besides what they have done
to improve and grow in my personal life,
they have helped me become a better
person and a better businessman overall.
One of the most significant things I
learned from the countless hours I spent
immersed in my study of Jim Rohn and
all he could teach me, is the importance
of lifelong learning. Of course, I realize I
can never know all that there is to know,
but I can try. The world is changing remarkably each and every day. New ideas,
concepts and innovations appear overnight and replace existing ideas and technologies within months. Many of these
concepts, technologies and ideas will find
their way into our professional lives and
will help our businesses boom in the future. For that reason, it is critical for us
as business owners to stay abreast of these
innovations and figure out how to make
the most of them. Technology is moving
faster than ever and it is our responsibility as business owners to ensure that we
embrace and utilize it to its maximum potential, lest we get left in the dust.
Jim Rohn’s credence in lifelong learning was an inspiration to me and I began
to adopt this philosophy in my own life
many years ago. Then somehow, I got distracted and stopped the practice of learning for a while. But about ten years ago,
I reconnected to it in a BIG way. One of
the things I’ve learned is that it is critical
to start and end your day positively. I start
with reading in the mornings and try to
end my day with either reading or watching DVDs or listening to CDs.
Here are a few key points that I stress
in my daily search for knowledge:
Commit to reading 20-30 books every
year on a variety of subjects. In my case,
most of these are on business and marketing topics. I also enjoy reading autobiographies by successful people who tell
their story. They are successful in their
fields and I always learn something when
I read their stories. Currently, I am working on another book of my own that will
be based on the things I have learned in
the insurance business that have helped
grow my agency over the years. I think
it will be an excellent resource for other
agency owners who desire exponential
growth in their agencies.
Listen to countless CDs every month.
One of my favorite places is in my car. I
spend a lot of time traveling, so I get two
or three things done at once; I get to my
destination, I get to learn something new
and when I listen to a CD, time flies by
instead of dragging on and on.
I watch DVDs as often as I can. I even
find myself watching DVDs from my
events, critiquing myself so that I can
learn how to better share my knowledge
with others. As we all know, one can never
perfect anything, but if you critique yourself and practice consistently, I believe
you can come pretty close. Quoting Zig
Ziglar, an American author and motivational speaker, we must all try to “sharpen
the saw.” This means that you and I must
constantly be looking for that slight edge
that will propel us to the next level. One
revelation each of us should know by now
is that we are constantly changing; our
bodies grow a little older each day, our
outlook changes over time and, hopefully,
we gain more and more wisdom every
day. Nothing stays the same, so we must
all learn to adopt, adapt and embrace the
changes in ourselves, our environment,
our businesses and our culture.
So, what does all of this mean for you?
If you’re not already doing it, start working on yourself. If you’ve traveled down
this road to personal growth before, but
fell down somewhere along the way, it’s
easy to get back up, dust yourself off and
begin the journey again. It’s kind of like
riding a bicycle; once you know how,
all you have to do is hop on and ride. I
know, because it happened to me. Personal growth can be about growing as a
person or growing as a business owner
and since this article will be published in
Exclusivefocus magazine, we’ll focus on
the business side.
One of the best ways to begin is by
reading the work of a business coach you
admire or aspire to emulate. One of my
favorites is Dan Kennedy. I started down
this path with his book, No B.S. Time
Management. I highly recommend it. It
will start you out on the right foot in
your lifelong learning process.
One key to remember is to concentrate
on learning when you’re at your highest
energy level for the day. Mine is early in
Contract Terminated?
If you have
been terminated by the
company for failure
to meet expected
results, NAPAA wants
to help. We will post your
agency for sale on our
Website at no charge. Just fax
or email a copy of your termination letter to 866-627-2232, or HQ@
napaausa.org.
After forwarding your termination
letter to us, go to the Sell Agency Listing
page at www.napaausa.org and fill out the information you want included in your ad.
Important: Be sure to click “NAPAA Member – No Charge” before sending. We will
post your listing for free.
the morning. I try to start my mornings
with reading something very uplifting.
For me, that means reading positive,
inspirational or motivational material.
Morning is the most underrated part
of the day. Many people can’t appreciate it because they have to rush off to
work and fight traffic. To me, it is quiet,
peaceful time that I block off for myself.
The rest of my day can be helter-skelter
and full of interruptions, but not my
quiet time. This is my time and I cherish it. How do I do it? First things first,
I unplug. I turn off the TV, e-mail, cell
phone, or anything else that has the potential to distract me. Then I normally
read something spiritual and something
to do with marketing. I receive about
6 newsletters each month that help
me grow my business. I use my morning time to read them and center my
thoughts and ideas. I also make every
effort to practice what I preach, which
is reading, reading and more reading.
Another famous Jim Rohn quote that
continues to inspire me is, “Poor people
have big TVs. Wealthy people have big
libraries.” If you want to be successful,
you must be reading.
To get started on the right foot, I suggest
you invest in events that will help grow
your business. Even today, I still attend
six big marketing events a year. There is
a wealth of talented people out there who
are willing to share their knowledge and
success secrets at these events. In addition,
I learn about new books and authors, new
strategies and new products that can help
me in my business.
As I said and written many times before, if you want to be successful, surround yourself with other successful
people. That is sage advice which I took
to heart many years ago and it has paid
big dividends in every aspect of my life.
Why not give it a try? Ef
Bill Gough is President of BGI Marketing Systems. BGI is a company dedicated to
helping Allstate agents take their agencies
to the next level of growth while maximizing profit. Bill can be reached at Bill@bgisystems.com or by calling (877) 208-9649.
BGI members: for a copy of “No B.S. Time
Management,” e-mail support@BGIsystems.com.
Fall 2011
JOSH KELLEY
VP of Marketing & Sales
BILL GOUGH
President
Dear Allstate Agency Owner:
Hi my name is Josh Kelley I work for Hall of Fame Allstate Agent Bill Gough, President of BGI Marketing Systems. We
recently returned from the NAPAA conference this past July in New Orleans where Bill was a keynote speaker. I heard from
many of the agents in attendance and they were not getting the FREE bi-weekly marketing tips we send out via email every other
week. These emails are helping Allstate Agents all over the country write more Auto, Life, & EB business plus, help sky-rocket
their retention. Over 3,500 Allstate Agents are already receiving these valuable emails every other week, they all can’t be wrong.
I found out that a lot of the agents at the conference didn’t know how to “opt-in” to receive these. I wanted to make sure
everyone has the opportunity to receive this valuable information so I created a special website where you can very easily input
your name and email address (it will only take about 20 seconds) and get on this list to receive Bill’s biweekly marketing tips.
www.BGISpecialOffer.com
You might be thinking you get enough emails as it is, well I guarantee that you will love the content delivered in these
biweekly tips, and if you don’t, simply opt out. But, to make it a little better for you I want to give you a FREE GIFT to give you
an introduction into BGI Marketing Systems and Bill Gough. Go to www.BGISpecialOffer.com right now to claim your FREE
DVD of a powerful presentation Bill did recently on 8 Proven Strategies To That Will Get You 10 More Referrals Every Month
Guaranteed. Those in attendance were blown away and I want to send this to you, nothing to purchase, free to you when you opt
in to our valuable emails.
If you are a new Allstate Agent or you’ve been living under a rock and don’t know who Allstate Agent Bill Gough is,
here’s a brief history of some of Bill’s Allstate Awards:
-5 Inner Circles
-11 Chairman’s Conferences
-6 President’s Conferences
-23 Honor Rings
-20 Life & Line Leaders
-Allstate Hall Of Fame
If you have any questions about BGI or this special offer, shoot me an email (josh@bgisystems.com) and I’ll be
glad to schedule a call with you.
To Your Success,
Josh Kelley
VP of Marketing & Sales
Fall 2011
BGI Marketing Systems
go to
o
t
t
e
g
or
Don’t f
fer.com
f
lO
ia
c
e
ISp
www.BG
D and
V
D
E
E
your FR
t
e
g
o
g your
T
in
t
t
e
g
re
re you’
u
s
e
k
a
Tips.
to m
g
in
t
e
k
ly Mar
Bi-Week
feature
Down on the Farm
by Dave Thorp
Right after an ALI survey, I purchased
a new Toyota pickup. Shortly after, Toyota sent me a questionnaire asking about
my sales experience. Amazingly, the
questions were almost identical to those
asked of Allstate clients. Other Allstate
people have noticed the same thing after
their own Toyota experience. It’s an old
tactic. Allstate goes out of the industry to
improve its retention and customer satisfaction indices by stealing questionnaires
and client retention tactics from other
corporations. Some of you older folks
may remember the great Scientology debacle that brought national disrepute to
the company. I wonder about stuff like
this. Do the business practices that good
car dealers or good Scientologists utilize
also make for a good insurance agent?
As far as car dealers go, some of you
may remember the dealership referral
program fiasco of a few years back. If
you don’t, let me refresh your memory.
In what was deemed a brilliant business
strategy, RVPs and junior officers from
across the country decided that some
sort of liaison between selected agents
and car dealers would produce tons of
new business. And it did; almost all of
it bad. As if you won’t get fleas if you
sleep with dogs. Let me explain why no
reputable agent should have ever participated in a dealer referral program. In the
dealer closing cubicle, the finance and
insurance man is trained to sell credit
life and disability, GAP, extended warranties and various other products and
warranties that he then packs into the
loan. Often the finished product doubles
the monthly payment. The dealer advertises a payment of $199 per month yet
at the end of the transaction, the customer walks out with a $398 monthly
payment. A good Allstate agent would
review these nefarious products, educate the client, get him refinanced at the
credit union and sell him some term life.
But you can’t do that if you’re beholden
to the dealer for referring the client in
the first place. In my most productive
years I was a consumer advocate and by
keeping good records, we were able to
bring charges against various dealers for
gouging, misrepresenting contracts, and
for financially burying minority clients
to the point they couldn’t afford insur-
ance on their cars much less the term life
policies we were offering. Some of these
clients had six or seven kids to boot. We
reported this misconduct to the state attorney general and two of the sleaziest
dealers ended up in jail.
Our RVP at the time conducted a sales
meeting promoting the dealership referral program. I arose from my seat and explained it could never work. I explained
that my dad had been a car dealer and
I had been raised on a used car lot. My
younger brother then and now has a successful dealership in California. Dealers
may otherwise be nice people, but the
very essence of the car business promotes
gouging, lying and stealing. ‘Rich’, the
RVP, got up and proceeded to humiliate me. There was nothing much I could
do at the time except sit down and eat it.
Unfortunately for Rich, the dealer program fell apart due to low retention, high
losses and yet more client dissatisfaction.
Rich was fired along with a few agency
managers and not a few agents. Oh, did
I forget to mention that just before he
got fired, I was at a Hall of Fame meeting in Chicago where I got up close to
Rich’s bosses and let them know what an
overbearing moron they had installed in
Phoenix?
But let me get back to ALI, RFG and
Allstate’s fascination with pencil pushers, acronyms and out-of-industry success stories. Before ALI came about, J.D.
Power and Associates had downgraded
Allstate to ‘below average’ in their Customer Satisfaction Index rating for its
National Auto Insurance Study. But now
that ALI and all the other acronyms created by the pencil pushers in Northbrook
have resulted in hundreds, if not thousands, of agent terminations? No change
folks; we’re still four places below the industry average.
I’ve always considered State Farm as
Fall 2011
our major competitor as well as the nonpareil company to imitate. Their client
retention rating is by far the best, considering the number of clients they serve.
They were my first choice as an employer
when I decided I wanted to be an insurance agent. Unfortunately, I didn’t meet
their standards. By the time I did, my
Allstate book was too large for me to
make a change.
Here’s my point. Instead of going outof-industry to emulate success, why not
look at the Farm? First, we can’t forget
they’re a mutual company. Over the last
10 years they’ve paid billions of dollars in
dividends to policyholders. Allstate paid
lesser amounts to stockholders, most of
whom are not policyholders. Let’s talk
about that kind of loyalty for a second.
In my experience, I have found that most
Allstate employees in regional offices are
not Allstate policyholders. They say the
price is too high. Next time you communicate with an underwriter, claims or administrative person, ask if they have their
auto insurance with Allstate. Most will
reply negatively, claiming they can’t afford
to insure with the company that provides
their paychecks. Most State Farm employees have their policies with the Farm.
Loyalty starts at home. As a newly retired
agent, I’ve been in contact with other retirees. I had a hunch none of them had retained their personal lines insurance with
Allstate. I’ve asked about 10 guys. With
the exception of two agents selling their
books on time to relatives, nary a one carries Allstate insurance.
Okay, now I’m going to get somebody’s dander up. After seven years,
84% of the Farm’s new agents are still
aboard, according to their Internet link.
On Allstate’s link, the company refuses
to state any agent mortality figures and
I’ve looked assiduously for them. But we
can look around our immediate regions
and see the turnover. Allstate wants
$50,000 in liquid and provable assets for
new agent prospects. My sources within
the Farm tell me $150,000 to $200,000
is their financial requirement, depending
on how many other incidental requirements the prospect meets. This is not to
say we don’t have agents that would qualify to contract with the Farm. However,
the Farm does appear to have a decided
Fall 2011
edge in talent.
But what about their lower tier manager and folks in their regional offices
that interface with clients? Well, let me
paraphrase a 35-year State Farm agent,
“Lower management has changed over
the years. There was a time when managers were kept in their positions to develop top-notch expertise, but now once
a service manager gains some experience
and knowledge, he or she is transferred
to another department like claims or
underwriting and they are replaced with
neophytes who are incapable of making
decisions because they are still wet behind the ears.”
So, everything isn’t perfect at the
Farm either. If what my SF friend says
is true, there is one big difference; it is a
recent development. This moving people
around bit and managers who are afraid
to make decisions may be new to the
Farm, but it has been Allstate’s modus
operandi for as long as I can remember.
We need to put aside the irrelevant
questionnaires and surveys and face the
facts. Due to the demands of stockholders,
higher premiums, divided loyalties, poor
choices in agents and lower management,
we won’t rise above mediocrity in the J.D.
Power and Associates Satisfaction.
I had a conversation with an Allstate
claims manager. I have a classic Maserati-Chrysler Hybrid I’m very fond of.
Unfortunately, it has been infested with
mice and we’ve tried professional extermination three times only to have the infestation recur. I could cosmetically hide
the smell momentarily and try to sell it,
but I wouldn’t be able to sleep at night.
I tried to appeal one more time to the
claims adjuster. I explained I had a total
of ten policies, including two annuities
worth over a million bucks. I explained
ethically I couldn’t keep the car and
could never resell it. I tried to talk about
loyalty from the company to the client...
a takeoff on the ALI. He said. “I don’t
know nothin’ about that. We’re not totaling out your car.”
Our agents may be head and shoulders above agents at some companies,
but lower management and claims?
We’re even-steven. Ef
Texas Agents – Join Our Team
Are you considering a career as a professional independent insurance agent?
Would you like to be in control of your income?
Do you want to be able to serve the full range of your client’s insurance needs?
Do you want to have a trusted partner who will invest in your future and allow you to
reach your full potential?
• No start-up or monthly fees to join
• Errors and omissions insurance
• Have a financial interest in your book of business
• Expansion opportunities
• Access to quality personal and commercial lines products
• Agency management system
• Group Health Insurance Coverage
We look forward to discussing branch location opportunities
in selected areas of Texas.
For further information contact
Carl Shockey @ 972-978-8881
cshockey@paragoninsagencies.com
www.paragoninsagencies.com
sales and marketing
3 Ways You Can Get More Referrals with
Social Media Networking
By Robyn Sharp
Are you tired of networking? Do you
keep going to the same events month
after month where you see the same
old faces and find that you are not seeing much new business as a result? If so,
then it’s time to upgrade your networking techniques and start mixing in a little
bit of social media!
Networking can be an excellent way
to bring in new business, but if all you’re
doing is collecting business cards once
a month at your local Business After
Hours networking event or having a nice
country club lunch with local real estate
agents, then you’re missing out. This is
because you can now refocus your efforts and implement three new ways to
get more referrals by using social media
marketing.
Step One: Connect online after the
event. When you meet someone new,
you typically exchange business cards.
It’s a standard networking technique, but
it can sometimes be awkward to know
what to do with them after the fact. Unless the person specifically asked for a call
or a quote, you don’t really have a reason
to contact them - until now.
When you get back to the office, take
that stack of cards and put them to good
use. Write a simple email to each person
you met. Let them know that you enjoyed
meeting them and would like to keep in
touch through social media. Include a link
to all of your social media profiles that
you want to use for business. This could
include your personal Facebook profile,
Facebook Business Page, LinkedIn profile, and your Twitter name.
Now you don’t have to shove the card
in your desk drawer and wait for a good
excuse to use it. The ball is in their court.
They can connect with you using whichever method they like and typically, most
of them will choose at least one of these
methods. But what good does this do you?
Well, now you’re going to have much
greater opportunity to get to know this
person. Instead of just seeing each other
for 10 minutes once a month, you are
now able to connect casually on a regular
basis. You’ll get to learn all about them
and at the same time they’ll get to learn
about you. They’ll probably know how
many kids or grandkids you have and
where you went on your last vacation.
Most importantly, they’ll also learn more
about your business! So when these casual networking acquaintances (or their
friends) have a rate increase or buy a
new home, your name will likely come
to mind and you could end up with a
brand-new customer.
The key to this process is to make it an
automatic system in your agency. Write
a basic template email and just personalize it a bit for each person you contact.
You can even hand over your stack of
business cards to your assistant and have
them take care of the email introductions
for you. Try to send them out within 24
hours of the meeting or event so it is still
fresh on their minds.
Step Two: Share your “referral rewards” program on Facebook. Referral
rewards are a very popular marketing
tactic right now. If you’re not using one
currently, the concept is simple. Every
time somebody refers someone to your
agency for a quote, they get a reward, like
a gift card or an entry intro a monthly
contest. Caution! Make sure to check
with your insurance department to see
what is allowed in your state to avoid rebating issues.
The great thing about referral rewards
is that they are very social and provide
the perfect opportunity to share on Facebook! Here are the best ways to incorpo-
Fall 2011
rate your rewards program on your page:
• Show your referral rewards program on it’s own custom tab and make
it easy for someone to send a referral to
your agency. You can easily include a
short form that allows customers to fill
it out and email you with the referral
information. Then you send them their
reward! Very easy and efficient.
• Post photos of winners. When
someone wins your monthly drawing,
have them stop by to pick up their reward and snap a photo. Then post the
photo on your page. This provides social
“proof ” to your followers that you really
do give out rewards and that others are
referring their friends!
• Mention your program on a regular
basis through your status updates. People
always want to know “what’s in it for
them.” When you ask for referrals, make
sure you show those recommending your
agency how you will reward them and
what they mean to your agency.
• Post a thank you message. When a
client sends a referral, take a moment to
publicly thank them on your Facebook
page. Recognition makes people feel
Fall 2011
good and it is more social proof to your
other followers.
If you followed Step 1, then you’re
already filling up your friends and followers list with those new networking
connections. They will see your clients
referring business to you and the great
way that you value and reward them for
it. Seeing this will help them spread the
word about you even faster.
Step Three: Get your staff involved.
If you can create more referrals and
drive more new business to your agency
through networking and referral rewards,
why not multiply your efforts? Have each
of your licensed sales producers join one
networking organization and teach them
how to connect and build those relationships in the exact same way.
If each member of your team was involved in at least one networking organization, think how much more exposure
your agency would get in the local community. But why not give them a little
incentive at the same time?
You can also reward your team members in the same manner you reward your
clients for referrals. Start tracking where
quotes and referrals are coming from and
offering monthly contests to your team.
Not only is it a fun way to keep everyone
involved, it also helps build confidence
and gets them to push a little harder.
You can track who gets the most new
fans on the agency Facebook page or the
most LinkedIn connections that month.
The prizes don’t have to be large and the
recognition can give them measurable
goals for building their networking skills
both in person and through social media.
When you put all of these tactics together you’ll begin to see results! Start
setting new goals for your networking by
giving incentives to your clients for referring friends and by training your staff
to look for opportunities as you put the
power of social media to work for you. Ef
Robyn Sharp is a former insurance agent
and social media expert and offers Facebook
page designs and customized daily Facebook
content just for insurance agents. Get a copy
of her free “Facebook Cheat Sheet” at www.
socialmediaforinsuranceagents.com.
business planning
Planning to take TPP?
Act Before Comp Changes to 8%
regarding the difference between the
“OLD” contract (R3001 and R3001A)
and the “NEW” contract (R3001S and
R3001C).
History
The new contracts were introduced on
November 1, 1999, when the company
announced its Preparing for the Future
initiative. If you were already an independent contractor exclusive agent at
that time, you would have been under
the old contract. Agents who became an
independent contractor EA after November 1, 1999, and any agent signing
a new contract since then, are under the
new contract. Reasons agents might have
signed a new contract – even though they
were initially on the old contract – might
include changing their business entity
from sole proprietor to corporation, or
purchasing an additional agency.
What’s the difference?
For many agents, the Termination
Payment Provision (TPP) will be the
single most important benefit they’ll ever
get from their relationship with Allstate.
If an R3001 agent decides to leave Allstate or is terminated, there are only two
ways to collect the economic interest of
his/her book of business. The book can
be sold, if the agent can find a qualified
buyer, or the agent can opt to take his/
her TPP.
Every agent under the R3001 contract with Allstate currently has a TPP.
The Termination Payment Provision allows you to receive a payment from the
company in lieu of selling the economic
interest in your book of business. The
payment is based on the eligible* earned
premium for policies written under the
R3000 or R3001 agreement. To calculate
the TPP, the eligible* earned premium is
multiplied by the current renewal commission rate and is then multiplied by 1.5
times. The total is then divided by twelve
and paid to the terminating agent over
the next twelve months.
The Termination Payment Provision
(TPP) in your R3001 contract offers a
payment from Allstate in lieu of a transfer
of the book of business to another party.
To be clear, a reduction in the renewal commission rate to 8% will reduce
the TPP value by approximately 20%
for every R3001 agent, regardless of
which contract you are on.
There have been several questions
The new contract has no provision for
TPP inside the contract itself. Under the
new contract, the TPP was moved to the
Supplement, which means the TPP is no
longer guaranteed. It can be changed to
a lower multiple, eliminated altogether
or the current 12 month payout period
could be extended, conceivably to 24
months, 36 months, or longer.
Agents under the old contract have
the TPP provisions written into their 10
page contract, which means the provisions cannot be changed by revising the
Supplement. Specifically, the company
cannot change the 1.5 time multiplier
nor can it change the payout period of
12 monthly installments. Some Allstate
managers, however, appear to be misinformed about this contract provision. At
a recent meeting in the Midwest region,
management insisted that the TPP pay-
Fall 2011
out period under the old contract could
be extended past twelve months, which
is absolutely untrue.
While no one really knows what the
Roadmap 2.0 reductions to the compensation will be, one recent rumor claims
that the payout period of the TPP will
be extended from 12 to 24 months or
more. If that is the case, it will only affect
agents under the new contract.
Unfortunately, all agents will have a reduced value on their TPP if the renewal
commission rate is reduced to 8%. TPP
is calculated by multiplying the eligible
renewal book compensation times the
applicable multiplier, which is currently
1.5. Therefore, if your TPP is $100,000
at 10% comp, it would be reduced to
$80,000 at 8% comp.
NAPAA Members can contact
NAPAA Headquarters for more information or assistance locating forms and
provisions for the TPP Assignment. Ef
*Certain policies are excluded from the
calculation of the TPP. In addition, the TPP
will not apply if the company discontinues
the sale of insurance in your state.
Reporting “Questionable Business Practices” to Allstate
NAPAA receives many inquires from agents who call to complain about unethical conduct by other agents. It
seems unethical behavior is becoming more commonplace, which is why it is up to the agency force to police
itself. And reporting bad behavior is easy and will help protect our rates. Following are selected excerpts from
the www.AlertLine.com website, operated by Global Compliance, a third-party provider contracted by Allstate.
“The Allstate i-Report process is designed to allow employees and non-employees to report potential compliance, unethical business practices and/or raise business issues.”
“The Allstate i-Report Process is based on these principles:
• Fairness: Every concern will receive individual consideration and be evaluated consistent with the commitment of Allstate to the employees.
• P
romptness: Concerns will be promptly directed to areas within the company that have the authority and
responsibility to review, investigate and resolve the issues.
• Safety: Concerns can be voiced without fear of retaliation.
• C
onfidentiality: Concerns will be kept confidential. Information will be disclosed only to those who need
to know in order to review, investigate and respond to your concern.”
“Global Compliance Services (“GCS”), pursuant to an agreement between its clients, provides a website to
collect from employees and others wishing to report information. This information includes but is not limited to
allegations of misconduct, questionable business practices, violations of a company’s code of conduct or other
events and behavior which may result in harm, injury or liability. The information collected and submitted is forwarded, without review or modification by GCS, to the client’s designated contacts.”
To file a report, agents should go to www.AlertLine.com or call 800.427.9389.
Fall 2011
legal matters
Counsel’s Corner
By Dirk Beamer
NAPAA and I have been watching
with great interest the lawsuit filed by
New Jersey agent Mario DeLuca against
Allstate New Jersey. Represented by national franchise law expert, Attorney Michael Garner, DeLuca has challenged his
termination as a violation of New Jersey’s
franchise laws.
Allstate sent DeLuca notice of immediate termination on June 29, 2011.
Given his strong performance history,
this came as a considerable surprise. DeLuca filed his suit in New Jersey state
court on July 5, alleging multiple viola-
tions of state law. Allstate responded by
removing the case from New Jersey state
court to federal court. To do this, Allstate
had to take the incredible position that
its primary place of business for Allstate
New Jersey is Northbrook, Illinois, not
New Jersey! DeLuca’s attorneys pointed
out the inconvenient fact that Allstate
New Jersey had recently filed three separate, unrelated lawsuits in federal court
alleging that its primary place of business
was, of course, New Jersey. How did Allstate New Jersey respond? Oops! That
was a mistake. We didn’t mean it. De-
How to Help
This precedent-setting case could derail Allstate’s plans in New Jersey and
elsewhere if Mario DeLuca prevails.
The estimated cost of this litigation is
$250,000. Your financial support can
help ensure a successful conclusion to
this important case. Help stop needless
terminations with your contribution.
HOW TO CONTRIBUTE
Make check payable to: NAPAA c/o WP&B Trust Account. Write “NJ Franchise matter” on the memo
line of your check and mail contribution to: Wright Penning & Beamer
27555 Executive Drive, Suite 165
Farmington Hills, MI 48331
Luca’s attorneys then filed a motion to
remand the hearing to New Jersey state
court, and a hearing was held on that issue on Tuesday, August 16.
On Thursday, August 25, a federal
judge granted DeLuca’s request and remanded the case to the Superior Court
of New Jersey. Ruling in DeLuca’s favor,
U.S. District Court Judge William J.
Martini wrote, “Based on the facts presented, Defendant [Allstate] has failed
to persuade this Court that New Jersey is
not its principal place of business.” The
court observed that Allstate New Jersey
had been established as a separate and
distinct company to deal with New Jersey’s unique insurance scheme and that
its president worked out of headquarters
in New Jersey.
In the meantime, Allstate has issued a
revised termination letter to DeLuca in
which it states for the first time that DeLuca was terminated for cause, specifically, for failing to meet Expected Results.
Presumably, Allstate recognizes its potential exposure under New Jersey’s franchise
laws for arbitrary and capricious terminations like DeLuca’s, which explains its
backtracking on the termination issue.
The fight now focuses on whether
the Expected Results provide a reasonable and objective standard on which to
base terminations like DeLuca’s. Given
the statistical difficulty most agents have
hitting these standards; Allstate seems to
have a real problem on its hands.
As we learn more, we will be sure to
share it. Ef
Dirk Beamer serves as General Counsel to
NAPAA and helps NAPAA track legal issues of interest to its members. NAPAA
has provided this update for informational
purposes only. The contents should not be
construed as legal advice or an endorsement
from NAPAA or its attorneys, and NAPAA
expressly disclaims any such advice.
Fall 2011
Fall 2011
feature
Allstate Agents Kept in Dark
About IA Commissions
For years, Allstate has offered independent agents a contract paying 15% commissions, while its captive agents only
earn 10% – and even less in the State of
New Jersey. Now, everything is about to
change – but not on the independent side.
As we know, Allstate will soon announce
its plan to trim the base P&C commissions of its captive agents by 20%. Details
of the reduction will be announced in
mid-September, but full implementation
is not expected to take place until 2013.
When the plan is fully implemented, base
commissions for captive Allstate agents
will be a little more than half of the base
commissions earned by the independents.
In comparing a $2 million book, a captive
would gross $160,000 and the independent $300,000 – a difference of $140,000.
Is an independent agent really worth
$140,000 more per year than the captive
Allstate agent?
In the past when senior management
was questioned about the disparity in
commissions, their answer was always,
“They have more expenses.” But now
that the captives buy their own computers, printers, agency management systems and phone systems, there is little, if
any, difference in agency operating costs.
What baffles many observers is that while
Allstate captives are constantly pushed,
poked and prodded to produce new business, IAs representing Allstate are pretty
much left alone. Many of them only do
what is necessary to maintain their contracts just so they can keep the Allstate
brand, which helps draw customers into
their agencies. Many independents say
that while the Allstate name helps bring
prospects through the door; the rates are
too high, forcing them to place custom-
ers with other carriers.
For its part, Allstate is doing its best
to quell any conversation about higher
IA commissions. Of course, they know
their agents are aware of the disparity,
but they seem to want to suppress any
discussion about it by ignoring the topic
altogether, or as in the case of one exAllstater-turned-independent, by threatening to pull his Allstate appointment.
The alleged reason, according to the
agent, was because he spoke about the
commission disparity to some Allstate
agents that he knew. It appears the company is concerned that even more agents
will bolt for the door if they know they
can almost double their commissions by
teaming up with an IA group that sells
Allstate. As for the agent who might
lose his Allstate appointment, he told
NAPAA, “It doesn’t matter if they pull
my appointment because I rarely write
anything with Allstate; their rates are
just too high.”
NAPAA does not begrudge the independents for the commissions they earn
because 15% is reasonable compensation,
considering the work performed and the
cost of overhead. But a 20% drop in base
commissions will not change overhead
expenses for captive Allstate agents. If
they desire to stay in business, they still
have to pay the same amount they currently pay for rent, telephone, staffing,
advertising and other fundamental agency expenses, but their take-home pay will
be a whole lot less.
As one agent from the Midwest region
said, “In many cases, we have no other
outlets to place business, except for the
state plans. The independents have all
kinds of markets and don’t have to walk
the business. So instead of a 20% commission cut, we should be talking about
commission parity with the independents
– that would be fair thing to do.” Ef
Fall 2011
feature
KNOW YOUR EXIT STRATEGY
Is Your Office Ready To Sell?
(Part 4 of a 7 part series)
By Ed Hogg
With the current selling environment,
the marketplace has shifted negatively.
The proposed new compensation structure of 8/8 has caused lenders to re-evaluate their loans, which has lowered loanable funds by an average of 15%. Now
even less money is available to buyers in
already tight lending markets. As a result,
book values are decreasing again. Future
changes are only going to compound this
issue. Changes, such as extending TPP
payouts from 12 to 24 months and a
likely requirement that new buyers must
vest for 5 years to own their TPP will decrease values further and tighten lending
even more.
What does this mean for you as a seller?
With more books coming on the market weekly and the buyer pool shrinking
with all the negative changes, are you
willing to see what the future holds? Is a
“wait and hold” approach worth the risk?
If you were planning to exit within the
next 5 years, you would normally begin
planning 3 years ahead of time. But with
these seemingly imminent changes on
the horizon, you might want to have a
heart-to-heart discussion with yourself
about pulling the trigger very soon. The
marketplace is deteriorating quickly and
unlike the stock market, which eventually rebounds over time, I would not expect
any such “recovery” at Allstate. With the
recent announcement to purchase Esurance, all of the production, ALI and compliance letters sent at will, reduced comp,
changes in TPP (if not eventual elimination) and declining RFG bonuses, the
business model is clear. The company has
no concern for agents, most specifically,
tenured agents who are most at risk of
losing their retirement book values.
Fall 2011
Allstate has no clear model for success in today’s environment
FSLs spend their time trying to handle buy/sell packages and locate more
buyers. Upper management creates more
rate increases, tighter guidelines and is
pushing out clients you worked years to
retain. Simply stated, now is the time.
Sure, the dust will settle and X number
of agents will survive, but under what
terms and conditions?
Is your book ready to market?
Staff: Do you have staff and if so, you
will need to have a meeting with them
before your book hits the market.
Reports: Print your current and three
years prior year-end CSRPs and as many
AIPRs as are available to you. The current TPP report will be needed for lenders to determine what financing is available for buyers. Lenders will tie up the
TPP, like a first trust, as collateral.
Lease: Pull your lease. When does
it expire? What terms are available for
early termination? It is very possible that
the buyer does not want your location or,
more likely, Allstate could refuse to approve it, especially if it’s not a retail location. Just because your office existed
for 20 years doesn’t mean Allstate will
grandfather the location.
F&E: Do a furniture and equipment
inventory of all the large items in the
office. Supplies can be listed as miscellaneous. Serial numbers are not needed,
but descriptions like “Dell Optiplex 330”
are best.
Debt: If you have a loan(s), check the
prepayment terms. If it’s 5 years or less, an
early termination penalty may be included.
The bottom line is to decide if you
should to pull the trigger or not and, if
so, start thinking about what a buyer will
want. You can’t change the stats, the location or the staff, but you can prepare how
you should market your book to interested
buyers. If your book is $1 million or less,
you should be looking for a buyer who
wants to start under the enhanced compensation contract. The small difference
in excess premium vs. the required $800K
can be shaved off to an inside buyer. For
a book up to $2 million, you can sell the
book as is, split it between two enhanced
comp buyers and shave off the difference,
or consider combining it with another
agent so you can offer an outside buyer an
Ideal Agency-size book of $3 or $4 million. If your book is over $2 million, you
should be able to sell it as is or combine
it with another book in order to offer a
larger agency to interested buyers.
Mergers are a whole other story. Depending on your region and what is
being allowed, most mergers will stop
around $1.5 to $1.7 million and vary, especially if you are currently too close to
the $3 to $4 million Ideal Agency size.
Find out from your market leader what is
being allowed and think outside the box.
Making a business case for your deal may
float, so go for it. If you don’t ask or push
the deal, you won’t get it.
I wish continued success to all agencies
and if your time has come, good luck! Ef
sales and marketing
Building Your Brand
by Richard Shipley
today, but remember to set funds aside to
continue providing value to your existing
clients. Their loyalty will continue to pay
you for years.
In any competitive field, success comes
from “building the brand.” Every agent
has their own “brand.” Successful agents
build their brand in a number of ways:
through advertising, community involvement and by creating a “buzz”.
Creating a “buzz” amongst prospective
clients is one of the most cost-effective
ways to generate referrals and encourage
repeat business. This “buzz” is most easily created through your existing clients’
word-of-mouth.
Build Client Loyalty: This goes
hand-and-glove with providing value
to your clients. Loyalty can be built by
exceeding clients’ expectations during
the first transaction, but that is just the
beginning. The relationship needs to be
nurtured to ensure you keep their business. Remember, your clients are being
bombarded with advertising from your
competitors, presenting them with compelling reasons to consider their services.
That is why you need a marketing program that will help your clients think of
you in a positive light throughout the
year so they will be reminded of their
great decision to choose you in the first
place. That is a long-term benefit to you,
and an extremely valuable one. In any
business, repeat customers are key to
creating a sustainable base upon which
profits can grow.
Use Proven Referral Tools: You can
build a feeling of loyalty, but unless you
have a tool to generate referrals, you cannot be sure you will achieve true loyalty.
Agents cannot keep asking clients for
referrals, but what they can do is keep
their name in front of clients all year
long. Then, every time they know someone who is making a decision about their
insurance needs, your client will be much
more likely to refer you. Sending your
clients a small gift that both highlights
your brand and provides them value several times a year, increases your odds of
referrals tremendously. And certainly, an
inexpensive yet thoughtful thank you gift
to your referring clients is a great way to
keep that pipeline of referrals flowing.
Choose Cost-effective Marketing
Solutions: If marketing and advertising
budgets were without limits you could
do much to get your name out there.
We all have constraints, so you want to
make the most of each dollar invested.
Take the time to build a marketing plan
that brings in the most business within
your budget. Everyone should invest in
the tools that will bring them business
To help you save even more on finding
the perfect marketing solution, NAPAA
negotiated with Entertainment Promotions to give Allstate agents a professional discount on their line of coupon book
products for client gifts and marketing
promotions.
You’ll save 55% off the retail price of
the famous Entertainment coupon book,
which is a perfect client gift for the holidays or as a thank you for client referrals.
The Entertainment book membership
features 50%-off and buy-one-get-one
free offers on dining, attractions, travel,
shopping, and services—things your clients do every day! Plus, Entertainment
provides FREE business card holders for
the front of the book, so your clients will
see you and think of you as they use it
throughout the year. To place your order
or learn more, call (866) 265-6758 or visit www.entertainment.com/NAPAA.
For a truly unique marketing solution,
you can order your own customized coupon book from Entertainment. The Savings Spree membership book will feature
your name, contact information, photo,
and logo on the cover, and includes 40
coupons from your hometown area selected just for you from Entertainment’s
database of over 275,000 offer locations.
At just $7.50 each, you’ll save 63% off the
retail price! Plus, agents who order before
November 1 will receive 20 free books
with their minimum order of 40 books.
This is a low-cost solution that will keep
your personal brand in front of your clients all year long! To place your order or
learn more, call (866) 265-6758. Ef
Richard Shipley is Director of Business Solutions for Entertainment Publications.
Fall 2011
It’s Time to Grow
Your Business
AND WE’VE GOT TWO PERFECT SOLUTIONS
FOR ALL YOUR MARKETING NEEDS!
NE W
pon
Custom Cou
Booklets
Perfect for Holidays
& Referrals
- Save 55%
ORDER TODAY!
866-265-6758
www.entertainment.com/NAPAA
Perfect for Mailings
Use as a Business Card
Open House Handout • More!
business tips
Marching to the Beat
of a Different Drummer …
Use the Customizer as a Lead Line (Yes, REALLY!)
By Scott Brodbeck, MCNE MCSE
When I say the word Customizer,
what’s the first word that comes to mind?
I’m sure that of the myriad of responses,
most of them would not likely be too flattering. When I became an EA, I decided
before my office doors were even open to
the public that I was going to be the king
of commercial coverage. Then I did my
first customizer quote and quickly began
to understand that the list of what you
can’t write is substantially bigger than
the list of what you can write. As soon as
I accepted that and started to dig into the
rather small list of what I could write, I
hit another brick wall called underwriting guides, which further limited the
acceptability of these risk classes by imposing even more conditions. Like many
agents, I threw my hands up and decided
that the Customizer was a complete and
total waste of my time. As time evolved
and I began using technology-based solutions to drive my marketing, I changed
my mind about this.
In previous articles, I’ve talked about
using some innovative ways to leverage
technology to create customized marketing databases that allow you to do things
differently than other agents in order to
drive more prospects through your doors.
One of those solutions was the scraping
of all of the data from the county assessment office, packaged neatly into a nice
searchable database in order to lead with
homeowners insurance (see Exclusive
focus, winter 2010/2011). When I create these customized databases for clients, the final product is a database that
contains information for every piece of
property in the county – which includes
all commercial structures as well as single family homes. Suddenly, the search
for prospects who meet the very limited
Customizer criteria is simple. So, if you
want to find buildings that are less than
20 years old, fewer than 5,200 square feet,
4 stories or less and are zoned as professional office space, you’ll find them with
ease. Prepare a quick letter using an automated mail merge between your word
processor and your database and within
an hour, you’ll be on your way to the post
office to mail every building owner fitting your criteria their own personalized
letter. In my case, I also included photos
of their building, which are available on
some assessment office websites or obtainable via Google. In my mind, adding
photos lets the prospect know that you
cared enough about them to do some
research as opposed to sending them an
impersonal form letter.
One of the arguments I frequently hear
from agents is that the Customizer pricing isn’t competitive, so they see no value
in looking for commercial prospects. My
response is to ask, “Do you know this for
a fact or is your belief based on the last
Customizer quote you did a year and a
half ago?” My experience has been that
the Customizer rates weren’t all that
bad; the problem was finding properties
that actually qualified to be written. Two
other things to consider are that when it
comes to commercial property policies,
many companies have taken significant
rate hikes over the years so don’t assume
that your price is higher than the competition’s. During my days as an independent agent, many of the companies
I represented had fairly high minimum
Fall 2011
premiums, so while the actual cost of
the insurance wasn’t that high, the total
cost of the policy was. As a result, Allstate might be much more competitive
than you think when it comes to Line 55
business.
Now for the million dollar question:
Why would you want to consider doing
this? The answer is actually quite simple.
First, leading with commercial will help
differentiate you from just about every
other agency in town. Second, it’s a line
of business few Allstate agents pursue,
giving you a wide-open market in many
cases. Third, you don’t have the CIC
competing with you on this line of business, at least for now.
When customers perceive that you are
a specialist, they will generally feel more
comfortable placing their business with
you. If there are 12 other Allstate agencies in your town and 11 of them write
nothing but home and auto while you’re
proactively marketing and writing commercial business, which agency do you
think that a commercial property owner
is going to refer to others? Certainly, the
other 11 agencies are capable of writing
the business, but from a customer’s perspective, they will recommend the agent
that they know can do the job.
Not only can you write the commercial business for these prospects, but
you’re setting yourself up to be the onestop insurance agency for these customers. The purpose of this exercise is not
for you to end up with a top-heavy book
of Customizer business, but to offer you
a unique approach to prospecting that is
utilized by few of your peers. You’re able
to leverage your investment in a customized marketing database and not only
lead with homeowner insurance; but you
can also lead with business insurance and
you don’t have to search very hard to find
every prospect in the county who fits into
the preferred footprint of the Customizer policy’s risk management guidelines.
Since we’re talking about commercial
insurance, we all know that Allstate won’t
accept all the commercial property you’ll
uncover in your assessment office database. In fact, properties that qualify for
the Customizer will be in the minority.
So what about the rest of the commercial
property risks you find in your database?
Fall 2011
These properties can be lucrative if you
can write them in the expanded commercial market program through Northeast Agency or other company approved
brokerages.
Many agents I’ve worked with over the
years are so dissatisfied with the commission rates they receive on this business, they are not motivated to pursue
it. They all say the same thing, “Why
bother chasing this business when all I
get is a 40% cut of the commission the
brokerage earns?” A couple of points
need to be made here. First, 40% of zero
is zero, which is what you’re going to
get if you don’t do anything. So by default, 40% of something is certainly better than nothing. Better yet, commercial
property owners are prime prospects for
other lines of insurance like auto, home
and life. In addition, you’re not “chasing”
this business or spending a lot of marketing dollars because you already have the
information in your database. As such,
what doesn’t fit into the guidelines for
a Customizer policy falls into candidacy
for the expanded market. Once again, a
mail merged, personalized letter can be
generated, stuffed into an envelope and
mailed in less than an hour to a large
number of the people who fall into this
category. Suddenly, the business finds
you and you are no longer “chasing” anything. Sure, 40% of the brokerage commission isn’t much, but you should be
viewing it as an opportunity to quote the
prospect’s auto, home, life and EB policies. In addition, you are reinforcing the
idea in the minds of every recipient of
your letter that your agency is the one to
go to for commercial insurance.
There have been many articles written
over the years about the need to differentiate yourself from not only Allstate, but
from every other Allstate agency. This is
just another way to accomplish this task.
Doing things differently than other Allstate agencies in your market or in the
state is the key to success. Leading with
lines of insurance that others either don’t
want to write or choose not to market, is
one way to do things differently. In addition to helping you create a diversified
book of business, it’s also a great way to
catch the attention of these prospects because it’s likely they have never received
a letter about their commercial insurance
from another Allstate agent. In addition,
there is something memorable about the
letter about their commercial insurance
– it’s different and because it’s personalized, it appears as though you truly took
the time to learn about their commercial
property needs. Sure, these prospects have
probably all heard from umpteen different Allstate agents about their auto insurance, but the letters they’ve received have
all been the same bland form letter that
the company provides. It is also possible
that some of them even have policies with
another Allstate agent, but have never
been approached about their commercial
property needs. Let’s face it, consumers
do not perceive Allstate as a company that
writes commercial insurance, so they look
elsewhere when they acquire commercial
property. But with a little effort, you can
change that perception.
Remember, the intent of this strategy
is to end up writing all the eligible business – you want to write their home, auto
and life. And to get there, you will just
march to the beat of a different drummer when it comes to your prospecting
efforts. With a lower commission rate
in the offing, your marketing dollars will
doubtless be tighter going forward than
in years past. Hopefully, my last few articles in Exclusivefocus have shown you
some interesting ways to take a single
database and maximize its potential by
leading your marketing campaigns with
homeowners and commercial property.
When evaluating the purchase of any
marketing tool, I encourage my clients
to ask themselves how many different things they can do with it. If it only
performs one function, then chances are
very good that unless it does that one
task extremely well, there are probably
much better ways they could be spending their marketing dollars. Ef
Scott Brodbeck is a Microsoft Certified
Systems Engineer and a Master Certified Novell Engineer who is also a former
EA and IA. Currently he develops technical marketing tools and provides marketing
consulting services specializing in the profitable growth of insurance agencies. He can
be reached via email at scott@scottbrodbeck.
com or by phone at 724-622-2904.
feature
Mr. Wilson, Tear Down These Walls!
How the One-Size-Fits-All mentality of upper
management is decimating the company’s agency
force and destroying the company
By a Capital Region Agency Owner
Let’s say there is an agency in Tucson,
Arizona that just writes the bejesus out of
motorcycle insurance. They know all the
dealers and network through the motorcycle clubs, but due to their competitive
position, are unable to write auto in volume. Or the Korean or Muslim agents,
who are the go-to people in their respective communities for auto and home, but
for cultural reasons, do not have a natural market for life insurance. The thing
both of these examples have in common
is that even though they may be exemplary profit centers and shining examples
of the company brand, under the current draconian management team, both
would unceremoniously be given the
boot and their policies sold or given to an
agency that would likely be less equipped
to service them. Most any agent you ask
can give you examples of how perfectly
good agencies are being shut down, their
policyholders negatively impacted – and
leaving in droves – due to the “jack-ofall-trades” business model that agents are
required to pursue.
It is all but impossible to pick up a
business periodical without reading
about a company getting rid of some
of the peripheral things that they do in
order to “focus on their core strengths”.
Allstate is in the process of doing it at the
present time with their banking unit. But
as owners of company agencies, we have
no say on what our core strengths should
be. All we have is a big list of arbitrary
goals we are required to hit, which may
or not be in our best interests to pursue as
individual agency owners. So, on a daily
basis, all of us are required to dilute the
focus that we should have on the things
that we are naturally good at in order to
do a bunch of stuff that we are not.
We were originally given contracts
to become agency owners because we
are motivated, bright and creative. En-
trepreneurs work best when they are allowed free rein, autonomy to problemsolve and find creative solutions in order
to succeed in their unique marketplace.
Instead, every day we have more activities dictated to us from outside sources
who think they know what it is to run
an agency, but who have no idea of the
dynamic of our individual agencies or of
our particular marketplace. We are given
ultimatums regarding the specific mix of
products that we need to write.... or else.
Every day, Allstate spends more money
on expensive marketing and tracking
tools that we are required to use and
compels us to watch “inspirational” videos without ever thinking for one second
that as business owners, we may very well
already have processes in place that are as
good or better than the ones that we are
being force-fed.
And now, with around 30% of our fellow agents having their businesses taken
away from them by our parent company
– with no end in sight – every agent I
know is scared to invest in their business
for fear of what the future may hold. So,
Mr. Wilson, as an agency owner that
truly wants to succeed and who wants
to proudly represent our company, I implore you to please stop spending money
on expensive gimmicks and forcing us to
use them, stop micro-managing every
minute of our workdays and stop firing
the most experienced among us.
For the love of God, just get out of our
way and allow us to grow our agencies and
manage our businesses and you will get
the growth you so desperately desire. Ef
Fall 2011
In business, it’s not what you know, it’s who
you know and here is what Allstate agency
owners are saying about Ovation Payroll…
“I switched to Ovation and instantly experienced faster and easier payroll processing at a lower cost”
Scott E. Sileo
The Sileo agency LLC.
Williamstown, NJ
“I am very pleased with the service that Ovation provides my agency. Whatever the situation that occurs, it is addressed in a timely manner.”
Kathryn L. Suter
The Suter Agency
The Suter Agency
Sarasota, FL
“Thank you for being such a great payroll company! Payroll is one thing I do not have to spend time and energy on any longer, and I know my taxes and employees are being paid on time.”
d
l
b i
id
i ”
Debe A. Campos‐Fleenor
The Fleenor Agency
Tucson, AZ
As an endorsed provider of NAPAA, Ovation Payroll is dedicated to providing each agency with award winning service, their own dedicated payroll specialist, and a competitive rate. Charles Parkhurst
Ovation Payroll
866‐341‐3504
cparkhurst@ovationpayroll.com
Fall 2011
business tips
Evaluating Independent Agency
Options for Your P&C Business
By Rex Hickling, CPCU, AIM
So, you’ve decided to explore going independent. Undoubtedly, there’s
no shortage of options these days. New
groups, aggregators and clusters are
sprouting up like weeds in a spring garden. However, it is a process that must
be navigated very carefully and includes
many considerations. After all, this will
be one of the most important decisions
of your professional life and one that will
indeed carry over into your personal life.
Hopefully, this article will serve as an informational roadmap as to what to look
for as well as what to avoid as you research and weigh your options. Becoming independent is not for everyone, but
if it is a path you are leaning toward, hav38 — Exclusivefocus
ing additional information will assist you
in making the right decisions and make
your journey that much better. Remember President Reagan’s signature phrase,
“Trust but Verify”.
Many agency owners begin their
search wanting to know about commission splits, ownership, and all the financial aspects. The monetary piece is, of
course, a fundamental and critical core
consideration, which we will get to, but
there are other important considerations
as well.
Group Stability
As noted, there are many options today
for an agency owner desiring to become
independent. Your evaluation in this area is
critical. Like any business, there is a range
of success in how a group does over time.
There is overheard in running a group.
Some groups manage their finances and
are able to execute better than others. Some
invest substantially back into the business
of the group for the benefit of group members, while others do not. Some have gone
through bankruptcy during these economically challenging times, while others have
thrived. You want to get a handle on both
the tangible and the intangible, which is
why it is crucial that you assess the stability, character and integrity of the group(s)
you are considering, as well as the gut-level
impression that results from your research.
Questions to ask include:
How long has the group been in business? Look for a group that has been in
the business of being a group for several
years. There’s an art and a science to running a group. Gaining an understanding
of what the group’s stakeholders needs are
and how to best meet those needs is best
learned by hands-on experience. A group
should have enough years of experience to
give you the confidence that the bugs have
been worked out and that the foundation
of their offering is solid. The best groups
are never satisfied and constantly innovate
to benefit their member agents.
What is their reputation? Ask around.
Not just of the agents they want you to
talk to – ask other agents in and out of
the group. There is often a close network
of independent agents in most local markets. Try to tap into that network beyond
trading the occasional referral. Can you
access the group’s agents on their website
to randomly contact? Also inquire with
Fall 2011
carrier representatives. While “on the record” reps may be impartial, but “off the
record” they may give you some pretty
telling insights. A group should be able
to provide you with contact information
for several carrier reps. Ask about things
like support, training, whether or not
commissions are paid on time, and about
other special commission deals, etc. You
may not get full details about commission arrangements, but you should be
able to get a feeling whether extra compensation is shared or not. This information will say something about the transparency of the group as well.
Does the group have experience in
running an agency? This is very important. The more experience a group has
in running an agency the better. Again,
experience provides insight. The best
groups have learned from years of handson experience and have built successful
agencies of their own. In other words,
they have walked the walk. Check their
BBB rating.
What is the experience level of the
group’s leadership? Successful groups
meet not only the needs of their affiliated agency partners, but are in alignment
with their carriers. Groups that have
both agency and carrier backgrounds in
their leadership ranks can offer unique
insights and common solutions that can
often result in a win-win for agents and
carriers alike – an incredibly powerful
and winning combination. Also, are you
able to talk at length with the leaders in
the group or is the person you are working with more focused on merely recruiting you?
During your exploratory phase, listen to your gut as well as your intellect.
Avoid high pressure recruiters. Invite
your spouse or a friend to meet the person you are working with. Since you
should be evaluating the group as much
or more than they are evaluating you,
having a second opinion can be very beneficial. Inquire with the group about their
requirements for affiliation. How do they
screen agency applicants? A group taking
all-comers may not be as agency-centric
as they claim. Since no two agents are
exactly alike, their needs and business
models will differ. As such, it becomes
tricky for a single group to be all things
Fall 2011
to all people. Therefore, is the group you
are considering flexible enough in both
offering and scale to accommodate your
needs and will they allow some degree of
customization to fit any particular needs?
After all, most successful businesses have
migrated to models of specialization
these days. This may take the form of
flexibility in various contractual options
and/or terms. Avoid the “one size fits all”
approach as it doesn’t usually hold true…
Carrier Access
Carrier access is a primary reason for
joining a group, aggregator or cluster.
On your own, production requirements
for carriers can be onerous, especially
as you transition to a world of independence. The last thing you need is production pressure as you strive for autonomy
and mastery in your new venture which,
of course, takes time. Providing carrier
access is an area where a group should
demonstrate a full range of carriers that
meet your needs and the P&C needs of
your prospective clients. Questions to
ask include:
What does direct access for personal
lines mean? It should mean that you are
able to have your own sub-code, your
own login ID and be able to quote and
issue policies whenever you like. If you
must use the group’s master code on a
permanent basis, or submit personal lines
applications through the group’s central
or online facility, you will find this problematic as consumers now demand realtime service and solutions. Anything but
direct access will slow things down and
put you at a disadvantage.
What about production requirements
for personal lines? Some groups may
claim there are no production requirements. But think about it - why would a
carrier invest resources and take on costs
only to have you never submit any business? It doesn’t work that way. While
production requirements should be substantially reduced as part of a group, you
will need to have “flow” and eventually
have production coming in, especially
for preferred carriers. The best groups
are up front about what production you
need and when. For some carriers, you
may need to demonstrate flow before
you obtain your own sub-code, which
is perfectly normal. This gives you time
to ramp up your business plan while allowing you to place business directly on a
real-time basis.
Which carriers should I consider? A
well-run group will have insights into
your market, supported by information
from carriers, marketing reps, as well as
their own data. By sharing your business
plan with the group, the group representative should be able to help you discern
close ratios and provide a carrier’s competitive strengths for your type of clientele, product line, and zip code. Among
other things, you should also consider
the carrier’s stability, compensation, ease
of doing business, product reach, features
and benefits and, of course, claim service.
What about Commercial and Surplus
Lines? Commercial is a huge ocean. Its
breadth and depth in the independent
world is much more vast than in the captive world. As such, you need to have
varying levels of knowledge for commercial access. Access to Commercial Auto
and BOPS, should be readily available if
you can provide flow. Further access can
be available for Workers Comp, Business Package Policies, larger accounts and
more specialty and complex accounts,
based on your level of commercial knowledge. Groups having expertise in this area
should be able to show you a clear path
to obtain that knowledge so you are able
to acquire direct access over time, or have
access to an alternate internal placement
facility. Such an internal placement facility can do much of the work for you, often at a different commission level. This
includes quoting, based on information
provided by you, underwriting and the
handling of underwriter questions, etc.
This works fine for the occasional submission, but is not without its challenges,
primarily because you are introducing an
intermediary between you and the carrier.
If you have the knowledge base and flow
of business, the best groups can obtain direct access to larger commercial accounts
and surplus lines for you. Ask and press
the issue if you expect commercial to be
a larger focus for you and your business
plan over time.
Will I have to do financial services?
The answer should be an emphatic “NO”.
Many agents looking to go independent
are looking for true independence, which
means you focusing on your own business plan – which if you elect, does not
have to include life, mutual funds, etc.
The majority of P&C carriers do not
require life or any other financial service
production.
Support
Support can come in many forms in
a group. Strong groups will provide you
what you need to get up and running fast
and provide ongoing support to enable
you to go deeper into carrier programs
to maximize your business. This is especially important given the “partnership”
feel you will have with many of your independent carriers. That feeling is one of
mutual understanding and support and is
not adversarial in any way. Inquire about
the following:
What do you need to get up and going
fast? Not unlike the many of the same
things you did as a captive, there are some
basic steps you will have to go through,
such as establishing proper bank accounts, developing a business plan, have
an understanding that you will be subject
to background checks, your office space
plans, the appointment process with
each carrier, access to run MVRs, CLUE
reports and insurance score reports, etc.
It sounds like a lot, but a good group can
make this a smooth, painless process and
be instrumental in making your transition much easier.
What is available from a group for
the “must haves”? Your wish list should
include things like Errors and Omissions coverage, a comparative rater, and
an agency management system. Some
groups provide attractive, discounted
packaged programs on such items. Other
groups may provide them, but with less
of a discount. But be sure you ask to see
the savings. If the savings aren’t there,
ask why. A reputable group should be
able to show you the “street cost” and the
advantage of the savings enjoyed by the
group that is passed on to you.
Inquire how training works. Will you be
left on your own after a kick-start, or will
your receive the necessary training to get
you up and running with your initial carriers; from systems, to products, to underwriting, to marketing programs, document
retention, etc.? Training will also be needed for the comparative rater and agency
management system. Again, the strongest
groups thrive in the support they offer to
you, providing an “ease” factor that is crucial during the transition period.
Once you are up and running, what
support is available on an ongoing basis?
Groups who excel in support can provide
insight into best practices, producer contracts – as you expand and hire producers – compliance issues, human resources
and other operational matters. The best
groups will generally provide free expert
consultation during the initial startup phase, the “up and running” stage,
through expansion and again as you consider perpetuation options in the coming
years. They are a partner whom you can
rely on and trust – your “trusted advisor,”
if you will.
What about marketing support from
the group? As mentioned, groups who
are agent-centric and who truly know
your market will have insights into close
ratios and other important pricing trends
for your locale. This is especially important as you consider which carriers to be
appointed with and which of them will
align best with your business plan. Many
groups provide co-op marketing support
in some form. Some provide advertising, sales and lead generation co-op programs that can help generate leads right
away. Some are experts in digital marketing and search engine optimization
(SEO) as well as web-design and even
offer discounts on web products. Some
offer marketing in the form of branding,
especially if you co-brand with the group
name and your individual name. Cobranding can be a huge plus. Be careful
though to not give up your individuality
with a group. If a group is named after
the owner and you must use that name,
perhaps that says something about a
more inward vs. outward focus; you will
make that determination.
The All Important Money Piece
I believe it was Samuel Clemens (Mark
Twain) who said “Figures don’t lie, but
liars figure.” Consider this. The impact
of commission differentials is significant over the life of your contract with a
group. You will likely make a higher
commission percentage in the independent world. Having more carriers should
result in both a higher close ratio on new
business sales and a higher retention on
in-force business. Reasons for this are
obvious as you and your customers will
have more choices. The aforementioned
scenario should result in greater gross
and net revenue for you and more revenue per customer, resulting in a more
efficient operation and greater return.
However, that is not always the case.
Before getting too excited about your
financial future, compare and contrast
your present revenue inflow and drivers.
Then forecast your likely case, best case,
and worst case revenue (commission)
flows in consideration of those drivers,
which will likely include expected quotes,
close ratios, your planned marketing budget and other large expenses, such as rent,
payroll, etc. A good group can be a huge
asset to you with this, providing easy to
use financial modeling that allows YOU
to do the input in scenarios of your choosing – past, present, and future.
What are the base commissions for the
carriers – new and renewal – and what is
the commission split between the agent
and the group? Be sure to find out exactly
Fall 2011
how and when commissions are paid –
and check with other agents on this.
What commission overrides are provided to the group and how are they
shared or earned? At times, some groups
are provided extra compensation due to
strong performance. Find out how that
extra compensation is shared. You may
want to ask to see a carrier contract or
two pertaining to the extra compensation.
Inquire also about contests. Do you split
that compensation with the group, too?
Same with bonuses, also known as
profit sharing. Find out the details of
how bonuses are earned and shared.
How does the group you are considering provide you with equity in the book of
business you have produced? What does
equity mean and over what time period?
All this should be spelled out in your
contract. The strongest groups provide a
guaranteed purchase option of your book
of business at some point in the contract.
What about ownership? One of the
most important questions you need to
ask is, “Who owns your book of business?” Most agents want the control and
freedom that ownership provides. Ultimately, ownership means having options
to maximize your sale when you decide
to sell or pass the business on to your
heirs. Look for contracts that provide this
maximization either through a purchase
guarantee or a first right of refusal to
purchase. One must ask why after fifteen
years, you would not deserve to have full
ownership of your book. Read the fine
print. Do the math yourself. Generally, a
little more money up front is well worth
spending to assure full ownership and/
or a guaranteed sell option. Beware of
clauses that have you paying an exit fee.
Also, proceed with caution if your only
option for financial gain is to sell back
to the group. Additionally, you may want
to avoid long-term contracts that provide
the group with a still sizeable 20%+ equity position even after 10-15 years. It
may not seem like a lot today, but it can
cost you hundreds of thousands of dollars down the road.
As you learn about all the revenue components, plot them into a spreadsheet and
compare for both total annual compensation as well as total agency valuation year
by year. You might be surprised in what
Fall 2011
you see. Generally, the differences are significant – often hundreds of thousands of
dollars or more, depending on the size of
your book of business and term of contract. As previously noted, monetary
considerations are not the end-all components, but are certainly near and dear to
any agency owner’s heart and wallet! You
will decide how important.
What about Me, the Agency
Owner?
Ultimately, making the decision to go
independent is squarely on your shoulders. It should be a decision that you
will feel nervous about, but eventually
you will settle into over time. After all,
you are going from a place of mastery –
even if you don’t like your present situation – to a place of having to learn anew
again. It is change and it’s not a walk
in the park. Know this though; it is not
that hard if you are with the right group.
Your learning curve will be exponentially
faster this time around. Most agents who
have made the change look back and ask
why they didn’t go independent sooner.
Your analysis of which group to join
should only be exceeded by an analysis of
your present situation. Take pen to paper
and conduct a SWOT (strength, weaknesses, opportunities, threats) analysis of
yourself and your present situation. Objectively have you given it your all? What
have you learned and what will you
change this time around? Is your carrier
giving you the stability, support, compensation, and overall value and respect
that you need and deserve? Do you feel a
long-term partnership with them makes
sense? Can you see the carrier’s vision
and feel like they have your best interest
at heart? All tough questions. The best
drivers in life check both the rear view
mirror as well as the road ahead. Best
wishes to you in your journey! Ef
Rex Hickling is President of Premier Group
Insurance, based in Denver, Colorado. Premier owns and operates five agencies and has
more than 100 P&C agency affiliates across
the United States. To contact the author, call
(303)818-6218 or e-mail Rexh@thinkpremierfirst.com. Information about becoming a
PGI Agency Affiliate is available at http://
www.ThinkPremierFirst.com.
Your Products Aren’t “One Size Fits All”
So Why Choose An AMS
Built For Another Agency?
Nightly downloads • Flexible agency reporting • Easy-to-access To-Do’s and xDates
• Document importing • Secure, simple and fast • Starts at $35/month
Find your perfect platform today at www.eAgent.net
business stategy
Where Will Your Agency Take You?
Key tips on HOW to Buy or Sell an agency
By Adam Pleva and Carissa Newton
Looking to BUY an agency or a book
of business, but aren’t sure where to begin? Know you want to SELL, but not
sure when? The reality is that if you
want to buy or sell an agency in the next
12 months and are just getting started,
you’re behind schedule.
Purchasing an agency and/or book of
business can provide the foundation for
you to take your agency business to new
heights. In fact, purchasing an agency
could be one of the quickest and most
cost-effective routes to grow your agency. When you start the process, here are
some key areas you shouldn’t overlook:
• Determine your search criteria. Understand the type of agency, size and premium volume you wish to target.
• When considering an agency, be
sure to take into account the product
mix, location and the overall condition
of the agency
• Like other major purchases, determine what your budget can handle.
If you are preparing an agency for sale,
you should begin at least 2-3 years before
you put it on the market. During this
time, you need to devote special attention to these potential selling advantages:
• Continuing or developing upward
sales trends;
• Keeping clean, accurate financial
records;
• Maintaining organized files;
• Minimizing major changes; and
• Making sure your book is free of
liens or other encumbrances.
Whether you are buying or selling,
now is the time to begin to assemble a
support team of advisors with experience
in mergers and acquisitions, such as a
business attorney, tax consultant and/or
CPA, who can guide you in developing
your sale strategy and advise you once
negotiations begin. Some prospective
sellers include a business broker on this
team. An experienced broker specializing
in agency sales and purchases can save
time and hassle during the selling pro-
cess, but be sure to do your homework
before signing up with someone. To find
a professional who provides quality service, you might consider seeking referrals
from colleagues who have used brokers
when buying or selling an agency. Be
sure you choose a broker accustomed to
working with agencies the size of yours,
or you may receive limited attention. It’s
also best to work with a broker who specializes in insurance agencies – especially
Allstate agencies – and understands how
to determine their value.
Once you identify an agency that
meets your overall criteria, you should
ensure that these next steps are part of
your due diligence process. This will prepare you for the acquisition and enable
you to smoothly work with partners like
business brokers and lenders.
Step 1: Discover all you can about the
way the agency is run on a day-to-day
basis and understand how the business
operates.
Step 2: Identify the reasons for the
sale. Are there internal or external problems that cause the sale? What does the
seller plan to do once the acquisition
goes through?
Step 3: Review the book of business
and the product mix that the agency is
offering its clients. For example, is it
mostly high risk or Expanded Market
business? If so, be sure you are comfortable managing that mix of business.
Step 4: Explore the current relationship the agent has with Allstate overall.
This could be very important during the
sale process.
Step 5: Understand who in the agency
is key to policyholder and carrier relationships. That person can make or
break your agency if you make the wrong
choice.
Fall 2011
Step 6: Make sure you aren’t inheriting skeletons in the closet. Examine all
contracts that may already be in place.
Step 7: Assess the compatibility of the
management team and the overall goals
of the organization.
Perhaps you are the seller, looking to
sell your agency in order to retire or scale
back to part-time? If that is the case, here
are some of the key steps to ensure your
path continues smoothly.
Step 1: Assess Your Strengths &
Weaknesses
Step 2: Develop a Financial Platform
• Estimate Fair Market Value of the
business.
» Work to ensure that earnings are
tracked and maintained properly
so that you can properly evaluate
them.
» Be prepared to have your financials scrutinized by prospective
buyers – this is necessary for them
to properly evaluate the business.
» Be ready to refer a lender that
understands your business and
the marketplace.
• Analyze your firm’s comparative
profitability and past performance.
• Determine the best sale structure
for you and the buyer. Here are common
types that are seen: Leveraged-Buyout,
Earn-Out and the seller-assisted sale.
One of the most common reasons for
agency failure is an inconsistent or stalled
cash flow of commission. As you evaluate the purchase of an agency, make sure
you feel comfortable with its history. In
addition to determining a purchase budget or price through the use of EBITDA
(Earnings Before Interest Taxes Depreciation and Amortization) along with
book value, you must also determine
what multiple of the agency’s annualized
commission stream you are willing to pay
and one that is fair to the seller at the
same time. Once you know the amount
you are willing to pay, you can then begin
to negotiate the price based on the various factors mentioned above.
Are you the potential seller? If so, have
you begun to identify potential buyer
prospects that align well with your business? This can be done by hiring a business consultant, by reaching out to other
Allstate agents who are seeking to ex-
Fall 2011
pand or by checking with your FSL.
You’ve laid out your path now and
know the information that it would take
to either BUY or SELL an agency. You’ve
identified your targets and have obtained
approval from Allstate. Now the biggest
hurdle facing you is figuring out where
the financing will come from. For many
agents their first step is to seek a commercial loan from their local bank. There
are two problems with this strategy. The
first is that most local lenders really don’t
fully understand the insurance business,
which can slow the process. Second,
many commercial lenders have become
much more cautious in the loan approval
process, prompting close scrutiny of every loan.
Ideally, you want a lender that understands your business, your future needs,
and can blend the two and take you to
that next level. Often this means finding
a lender that understands commissionbased lending.
Even with those aspects aside, you will
want to find a lender that will lend you
the capital you need to BUY or SELL
regardless of market conditions. If you
are ready to take that next step, why not
simplify the process by contacting one of
the lenders that specialize in lending to
Allstate agents? Ef
Adam Pleva and his team at Oak Street
Funding are dedicated to Allstate agents.
Their expertise has helped Allstate agents
BUY, BUILD, and SELL their businesses.
Carissa Newton is the Director of Marketing at Oak Street Funding and has over 17
years experience in the industry. To learn
more, contact adam.pleva@oakstreetfunding.com or call 866-625-3863.
DISCLOSURE: Loans and lines of credit
subject to approval. Rate may vary at any
time. CA residents: Loans made pursuant
to a Department of Corporations California Finance Lenders License. Potential
borrowers are responsible for their own due
diligence on acquisitions.
Support Those Who
Bring You This Magazine
If you have a
customer moving out of state, call the Agent-to-Agent
Hotline to find an experienced NAPAA member in the
area. Give something back to those dues-paying member agents who make this
publication possible. Your
support is greatly appreciated.
When you have
a Transfer-Out…
Call 877.627.2248
Send email
requests to HQ@
napaausa.org
technology
Leveraging VoIP Features to Make Cloud
Communications Work for Your Agency
by Kallen Gonzales
cloud, it means that it’s not physically located on the premises, so it does not eat
up office space, cost the business extra on
energy bills, or break down and require
expensive visits from technicians. But
the good news doesn’t stop there. Cloudbased VoIP phone systems also provide
insurance agencies with the same reliable
phone capabilities while saving space,
time, and money.
When insurance agencies opt for offpremise, hosted VoIP services, they benefit not only from increased storage space,
but also from the ability to leverage a set
of high-tech features that synchronize
with their VoIP system, streamline their
operations and increase connectivity.
Staying Connected –
No Matter Where You Are
Allstate agents know that phone systems are essential to their success. In such
a service-driven field, being available to
customers is paramount, and missing a
call can mean losing a customer or a referral. And while most agents are familiar with VoIP or have at least heard the
term “cloud communications,” not many
know that VoIP solutions often come
packaged with an easy, cost-effective,
high-tech set of features that can give
them a big boost in productivity.
What is VoIP?
VoIP (Voice over IP) is phone system
technology that delivers calls over an Internet connection instead of traditional
phone lines. Sometimes it is used interchangeably with “hosted PBX,” which is
an off-premise Private Branch Exchange
that saves your business physical space
and upkeep. In the old days, if an insurance agency wanted an on-site PBX,
which many did, the agency would need
to devote an entire closest to a bulky,
high-maintenance system. But VoIP
eliminates the need for in-office hardware by putting the technology in “the
cloud”.
What is “The Cloud”?
“The cloud” is a term that is showing up everywhere these days. It simply
means that different computers connect
through the Internet or an intranet and
collect data from other supercomputers
to deliver your information. When an
insurance agency’s PBX system is in the
Since the VoIP phone system relies on
the Internet, features like paperless faxes,
voicemail to email, transcribed voicemails, click-to-call features and other capabilities are seamless with its synchronized digital technology. Each insurance
agency has different needs, but some of
the most common VoIP features sought
after by agents include these essentials:
Never Miss a Call – Set up rules for
your calls to be redirected to your cell
phone while on business, or set up a call
system to ring your office first, then your
home office, then your cell phone. With
so many different call forwarding options, VoIP technology saves agents from
worrying about missing important calls.
Plug and Play Technology – The
whole point of moving the on-premise
PBX to the cloud is to save the time
and frustration spent on setting up and
maintaining a system. VoIP technology
connects to a cloud-based server, mak-
Fall 2011
ing it easy to simply plug in a compatible
phone and customize settings through an
online portal.
Online Dashboard – Instead of spending time with a technician to change or
customize settings, agents can log into a
dashboard to change any number of flexible options, any time of the day.
Integration with Outlook – Instead
of maintaining a contact list or wondering how to get in touch with someone
when you left their business card sitting
on your desk, VoIP allows Microsoft
Outlook to sync with your phone system,
automatically utilize saved contacts and
make calls with the click of a button.
Smartphone Accessibility – Because
VoIP technology is digitally-based, insurance agents are increasingly discovering that utilizing apps on their mobile phone enables them to make calls,
change settings, review call queues and
listen to voicemails – no matter where
they’re located.
Call Reports – Immediately review
all incoming and outgoing calls without
waiting for a printed, monthly statement. If a customer leaves an urgent
message without a number, you can call
them back quickly and easily.
What Does This Mean for
Insurance Agents?
Increase Productivity. Essentially,
the biggest benefit of hosted VoIP and
unified communications for insurance
agents is that VoIP phone technology supports integrated features to help
agencies do more in less time. In the
current economic climate, cutting costs
while bringing in new business is essential, and cloud-based VoIP communications can help agents by saving money,
get more done, and stay connected.
Save Money. VoIP features like Never
Miss a Call, Smartphone accessibility
and Outlook integration are often included in the flat rate plan from VoIP
service providers because the capabilities
are cheap to enable in the cloud technology environment. Unlike traditional
phone service, where agents can expect
to be billed for each extra feature, VoIP
phone systems often come prepackaged
with a host of business-class features at
no extra cost.
Project a Professional Image. By leveraging the various types of features included in many VoIP phone plans, insurance agencies of all sizes can project the
look and feel of a larger agency without
losing the personal service that customers in the community value.
While many agents have been on the
fence about VoIP because their traditional
provider has been “reliable enough,” it’s
worth researching how VoIP technology
– especially with its associated features –
can boost an insurance agency’s business.
To best determine how VoIP can benefit
your agency, define a list of the phone capabilities that are absolutely necessary, like
the ability to forward calls to a cell phone
after hours or edit a customizable auto attendant. Then, make a list of the features
or tools that would be incredible to have –
VoIP features like voicemail transcription,
call continuity, and on-demand call recording. Chances are you’ll be pleasantly
surprised by the innovative, but low-cost
features that VoIP technology can bring
to your growing business. Ef
Kallen Gonzales is the Content Manager
for Vocalocity, the leading provider of hosted
PBX phone systems for small businesses. You
can learn more about and get a free quote on
Vocalocity’s no contract, cloud-based phone
system and specially priced insurance bundles at phones4insurance.com or by calling
800-642-CLOUD.
RHINOTEK
Providing Premium Imaging Supplies for Over 28 Years!
RHINOTEK is a preferred NAPAA supplier for ink and toner products.
Great Savings - Group Buying Discounts
Guaranteed Quality - Higher Page Yields
Free Shipping - 30 Day Net Terms
Help the Environment - Save the Rhino
We provide our customers with value every step of the way!
•
A vast selection of 6500 compatible and OEM imaging supplies
•
Over 28 years as an industry leader of premium inkjet and toner supplies
•
High-quality output, vivid colors and exceptional yields
•
Compelling price to performance value
•
A knowledgeable sales team focused on your growth through savings
TRYING TO SAVE MONEY BY MAKING WISE PURCHASING DECISIONS?
A RHINOTEK NEW LIFE PRINTER and PREMIUM TONER CARTRIDGE IS YOUR BEST SOLUTION.
Part Number
Product Description
NA13MS-Q5927A
RHINOTEK CERTIFIED PRE-OWNED HP LaserJet 1320 with 13 Month Warranty
NAPAA Price
$255
QH-1320
RHINOTEK Compatible HP Laserjet Black Toner Cartridge - 7000 yield
$72
Call your representative today at (800) 695-RHINO for special NAPAA pricing on all Rhinotek branded ink, toner and maintenance kits.
Don’t forget to ask about our complete line of Certified Pre-Owned New Life Printers.
Rhintotek Computer Products, Inc. 2301 E. Del Amo Blvd., Carson, CA 90220 (800) 695-RHINO www.rhinotek.com/napaa.htm
Fall 2011
parody
Scrooged, Allstate Style
by Bryan Ahlquist
“And in conclusion, ladies and gentlemen, even though there will be no bonuses this year, I want to wish everyone
a Merry Christmas and a good night.”
Quickly re-stacking the note cards
he used to deliver his speech, Allstate
CEO Tom Wilson pocketed them in his
$4,000 double-breasted Armani suit and
strode from the lectern without so much
as a backward glance at the politely applauding crowd. Then, in a barely audible tone, he mumbled, “What I meant to
say was, ‘bah, humbug’. May you all find
a lump of coal in your holiday stocking.”
A stodgy but efficient looking woman
dressed in a cheerful red dress was waiting next to the stage. Because Wilson’s
secretary of four years was on vacation,
the HR department sent longtime Allstate employee, Ms. Liddyberg, as a temporary substitute. “What did you say, Mr.
Wilson?” she asked. With a pen poised
over a notepad, she prepared to record
Wilson’s next words, but found she had
to sprint to keep up with the marathonrunning Allstate CEO as he moved
quickly toward the closest exit.
“Nothing, nothing,” snapped Wilson.
“Have my car brought around. I’ve had
enough holiday cheer for one year, Ms. uh...”
“Liddyberg,” answered the woman.
Upon hearing the name of the temp,
Wilson cocked his head to the side and
quickly stole a glance at her face. For a
moment he thought she looked strangely
familiar. Shaking the thought from his
head, he picked up the pace and exited
through the throng of Home Office employees. With his substitute secretary in
tow, he stepped quickly into a waiting elevator. The temp shuttled after him and
skipped into the elevator just in time to
beat the closing doors.
“Whew,” she said. “That was close.”
Wilson had stepped to the back of the
conveyance, and as if pointing to a cut of
sirloin behind a meat counter, he raised
his finger and motioned toward the closed
elevator doors. He said, “Your dress.”
With a squeal, Ms. Liddyberg grabbed
at the hem of her dress as it slid up the
gap between the closed doors. After a
quick succession of frantic tugs, the dress
came free. Stumbling back from the
doors with the remnants of the shredded
dress in her hands, Ms. Liddyberg stared
in horror at her torn garment.
Wilson had remained unaffected by
her plight at the back of the elevator and
watched as the woman’s shoulders began
to heave up and down, slowly at first, but
then in quick shuddering spasms.
Without turning around she sobbed,
“I bought this dress on credit, thinking I
was going to get a bonus this year for being a loyal 25-year Allstate Employee.”
Turning slightly, she held out the torn
dress for Wilson to see.
Wilson had removed his Blackberry
from his pocket and was scanning his
emails. Without looking up, he grunted a
cursory assent to her remark and continued to thumb down through his messages.
Soon her sobs had become a low keening wail. Wilson was annoyed by all of the
drama and was about to say something,
but stopped when a mechanized voice
emanating from the overhead speaker announced, “Private garage level 1.”
Brushing past her as he exited the elevator, Wilson spotted his limousine still
in its assigned parking spot, 50 feet away.
“Didn’t I tell you ...” Wilson started to
say, but the elevator doors had already
slid shut behind him, whisking the stillcrying woman away. Except for the driver seated in the idling limousine, Wilson
was suddenly alone in the dimly lit parking garage.
Adjusting the oversized glasses that
were always perched on his face, Wilson
quickly strode over to the driver’s door
and rapped loudly on the darkened glass.
When the window did not slide down,
he began rapping insistently. The only
acknowledgement he received to his persistent knocking was the faint clicking
sound of the power door locks popping
to the unlocked position for the rear door.
Already on edge from having to give
Fall 2011
a motivational speech at Christmas, he
was in no mood for dealing with incompetent employees. Exasperated, he
stopped rapping and yanked the rear
passenger door open and climbed in. After slamming the door behind him, Wilson shook his head in disbelief. “What a
night,” he thought. First, it was the party
with all those money-grubbing employees looking for holiday bonuses and then
he was forced to deal with the bumbling
temp. And what about that temp? HR
knew he liked his staff young and cute.
This one was a bit on the plump side and
not exactly the best looking dish on the
table.
Just then, the limo began to back out
of the parking spot, breaking Wilson’s
train of thought. “Hey,” he shouted. “I
didn’t even tell you where I want to go.”
Scooting forward so he could open the
privacy window, Wilson lost his balance
when the driver shifted into forward and
shot out of the parking space. The limo
sped crazily through the garage and after
a series of seemingly out of control turns,
blew through the exit gate and careened
onto a busy Chicago street.
Before Wilson could regain his balance, the privacy panel suddenly slid
back, revealing through its small opening, a pudgy-faced, balding older man.
But because Wilson had not been able to
regain his seat after lurching to the floor,
he lay prone; staring up at the shinyfaced visage perched above him.
“Tommy boy...ahem, I mean, Tom
Wilson,” said the man in a gravelly voice.
“I am the ghost of Christmas past, present, and future. We’re all about multitasking these days you know.” The ghost
paused for a laugh, but when Wilson
said nothing, he pressed on. “You are
to be transported to a time when things
were as they should have been… a time
of joy and happiness amongst the Allstate agency sales force.” Without turning to look at the road in front of him,
the driver reached for the steering wheel
and executed a perfect left-hand turn,
accelerating quickly in front of unhappy,
but yielding traffic. “Our first stop is an
NOA office in Los Angeles, California,
so buckle up.”
With this, the privacy glass slid shut
and the limo accelerated to an even
Fall 2011
quicker pace. Wilson gripped one of the
shoulder harnesses and began pulling
himself toward his empty seat. Suddenly,
the driver slammed on the brakes, and
with screeching tires, the limo skidded to
an abrupt stop. In what seemed to Wilson as a split-second later, the limo door
flung open letting in blinding sunlight.
“What the .....” he croaked. “This can’t
be. It was night time just a moment ago.”
Wilson climbed out of the limo and
shielded his eyes from the bright glare of
the sun. Turning in a half-circle, he stared
up at the gently waving palm trees that
protruded from the sidewalk next to him.
When he turned to look for the driver, he
saw him walking briskly up the sidewalk.
As he watched, the driver entered a small
Allstate office, just in front of the crazily
parked limo. Wilson followed him into
the building, and found himself in the
lobby of a neatly decorated NOA.
Scanning the office, Wilson spotted
the driver leaning over the shoulder of a
young man who was seated in front of
a microfiche reader. “This Tommy boy...
er, I mean, Tom, is an NOA agent.” Wilson’s jaw dropped when he saw what the
driver was doing and he waved frantically for him to back away. The driver went
on. “He is a full-fledged employee, but
he actually thinks he is a business owner.
Look at these.” The driver then snatched
a 4”x 6” piece of microfilm from the microfiche reader on the agent’s desk and
waved it at Wilson. “This represents a
book of business worth almost $1.2 million in premium. Not a bad size book for
a 10-year agent.”
Realizing the agent, as well as the other
staff members in the room couldn’t see
or hear them; Wilson strode over to the
agent’s desk and looked at the small, bluish-colored microfilm in the driver’s hand.
Wilson noticed the driver’s cheery
smile and thought he recognized something familiar about his face and was
about to say something, when the man
pressed on. “Agents during this period in
Allstate’s history spent thousands of dollars out of their own pockets and rarely,
if ever, complained about anything.” The
driver waved around the room and then
said, “We actually.... I mean, Allstate actually encouraged agents to think of themselves as entrepreneurs, while at the same
time, the company knew they really didn’t
own anything. Agents freely invested in
growing their agency. Allstate even gave
them a monthly allowance called OEA
that they claimed would cover monthly
expenses, which, of course, wasn’t true. In
any case, the agents were happy, Allstate
was happy. Talk about having your cake
and eating it too!”
The driver chuckled and was about to
say something else when Wilson blurted,
“What is all this? Why are you telling me
this? I think I must have hit my head,
because none of this makes any sense.”
Wilson started to turn to leave the office
when a firm hand gripped his shoulder.
“Hey,” Wilson squeaked, “That hurts.”
The driver’s face had suddenly grown
dark and looked as if it had aged a hundred years. “This is Allstate’s past,” he
growled, “Your past. The legacy that you
inherited when you became CEO after...
Um, after the other CEO’s before you,
like Jerry Choate and Ed Liddy.”
“Yes, yes,” chirped Wilson. “But so
what? Why do I care about some lowly
NOA? He probably was making a ton of
money off his renewals.”
“That’s right, Tom, but pretty soon
you’re going to change all of that. But
for now, look at how happy he is.” The
driver’s face softened and some of the
darkness seemed to fade away. “He employs several staff. He has a telemarketer.
He spends thousands of dollars out of his
own pocket so he can grow his agency
and yet he doesn’t even seem to mind.”
The driver let go of Wilson’s arm and
pointed to the smile on the agent’s face.
“He has no clue that in just a few short
years, Allstate is going to shift a mountain of processes and expenses right on
top of him. Allstate will wipe that smile
off of his face so fast...” The driver paused
and pointed to Wilson and continued,
“Your head is going to spin.”
Wilson touched his forehead. “I think
it might be starting to spin now,” he said.
The limo driver gripped Wilson’s arm
and guided him out of the office. When
they were within a few steps of the limo,
the driver pushed Wilson into the rear
compartment. “Hey,” shouted Wilson.
“Watch who you’re shoving.” Once inside, the door slammed shut behind him
and with a sudden lurch, the driver cata-
pulted them into the tangle of LA traffic.
Reaching down to retrieve his $3,000
Mont Blanc pen that had been dislodged
earlier from his pocket, Wilson was
tossed to the floor for a second time as
the driver slammed on the brakes. “What
now?” huffed Wilson.
Once again, the limo’s door flung open
barely a split-second after the vehicle
had stopped. “How do you do that so
fast?” asked Wilson.
The driver helped him from the rear compartment and onto a crowded New York
City street. “Do what?” asked the driver.
“You know, one minute we’re flying
down a road, and just as soon as you stop,
the door opens, and there you are.”
“Correction, Mr. Wilson,” said the
driver pointing to a figure ahead of them.
“There you are.”
Wilson turned to watch himself, or a
very good look-alike, enter a tall glass
and steel building on 52nd street. Without realizing it, he and the ghost had
started moving up the sidewalk. As the
pace quickened, the movement felt more
like floating than walking and they soon
reached the door his twin had just entered. Exasperated, Wilson grumbled,
“Now what, another NOA? I can honestly say, this is must be some sort of a
scam. Everyone knows I have never been
inside an agent’s office in my entire life.”
The driver nodded in agreement and
said, “Indeed.”
As they were gliding along, Wilson
was able to look more closely at the limo
driver’s face. There was something about
the hair or, no, maybe it was the nose.
Whatever it was, the driver absolutely
looked like someone he knew. He just
couldn’t quite make the connection. A
loud ding from an elevator chime announced their arrival at the 21st floor,
breaking Wilson’s stare and train of
thought. “Hey,” he said. “Pretty neat
trick; I didn’t even notice we got on an
elevator. Where are we?”
The plaque positioned on the wall opposite the elevator read: McKinsey and
Company. Exiting the elevator, the two
once again found themselves in the company of people who could not see or hear
them. A short walk through the lobby
and down a marble-lined hallway led
them to a closed mahogany door marked
“Conference Room A”.
“This Tommy B... uh, Mr. Wilson,
is where your new future begins.” The
driver pointed to the door as if he were
a game show model. “In there, are the
architects of the master plan Allstate is
implementing to make you a millionaire
a hundred times over.” Passing through
the wall like two transparent ghosts, the
driver pulled Wilson into the spacious
conference room where the other Wilson
was listening with rapt attention.
The speaker was a McKinsey executive that Wilson knew he was to meet
in just a few days. “And after we receive
your authorization via secure computer
link, we feel we can implement all of the
required programs in just under a year.”
“Look at his… I mean, your face,”
said the limo driver. “You just won the
executive lottery. And all you have to do
is stick to the plan McKinsey and Company laid out in front of you. And then…
Cha-Ching!”
“Yes, yes,” said Wilson impatiently. “So
what else is new? I knew about this plan
years ago. Ed Liddy and I talked about it
all the time. We conspire to continuously
hire agents and then fire them once they
run out of money to spend. This turnover
process allows us to confiscate their books
of business and pay them next to nothing
in the process. Then we change the comp
plan to drive out the whiner-butt agents
and then, when the remainder least expect
it, we terminate them à la Canada and hire
them back as employees at lower wages
and few benefits. They’ll be so distraught
at losing their high-paying jobs; some may
even accept part-time positions.”
The driver had walked over to the
conference table and was trying to pick
up one of the gourmet truffles neatly
stacked on a Ming Dynasty serving tray
positioned in front of other Wilson. Try
as he might, his ghost-like hand couldn’t
lift the chocolate treat. Looking back at
his Wilson, the driver held a finger to his
lips signaling him not to speak. He said,
“Here comes the good part.”
The McKinsey representative continued, “Once implemented, the first phase
involves bringing in outside consultants in
key management positions. At the same
time, you will receive internal recommendations for substantial rate hikes on what
you now call “Personal touch loyalists.”
Our proprietary rating model will serve
as irrefutable proof of the necessity to
raise rates in any given state. This process
will streamline the rate approval process
and validate the need to raise rates to the
state insurance commissioners. And even
though our internals show that your present board of directors will initially balk at
this, we think with the distraction of the
Esurance purchase and the short-term influx of capital, you will be poised nicely
to accept an offer from Berkshire Hathaway to acquire Allstate. In short, with
everyone’s head spinning, we can virtually
guarantee our plan will work. While this
move will likely decimate thousands of
employee jobs, you will be delivered your
$375 million in executive compensation,
and lest I forget, the additional $20 million for your buyout.”
“Whoo-hoo,” exclaimed Wilson. “I
knew my take was to be big, but never
this big. Man, oh man, what a payday. So
this is.... the plan. I never dreamed what
Ed Liddy and I had talked about was
just the beginning.” Wilson walked over
to the driver. Clutching his shoulders, he
stared intently into the man’s eyes. “This
is better than Chainsaw Al’s deal. And
best of all, the money I get will be way
more than what Liddy got when he left.”
As he spoke, Wilson hadn’t noticed the
change of scenery going on around them.
When he finally did look away from the
driver, he saw he was once again standing
next to the open door to the rear compartment of the limousine.
“Hey listen,” began Wilson. “Uh, you
know, uh driver.... uh, I never did get
your name.”
“Liddychowski,” responded the driver.
“Lidd... what?” stammered Wilson.
“Liddychowski,” repeated the driver.
“But you can call me Liddski.”
Wilson squinted and peered more
closely at the driver’s face, and for just
a moment, he thought he recognized
something familiar in the man’s visage.
Just then, a passing car honked its horn,
breaking the spell. Turning away from
the ghost, he pointed to the back of the
limo and said, “Okay, Liddski. Take it
easy on the way back. It’s pretty crazy in
the back with the way you drive.”
“Sorry sir, we’ve got one more stop.”
Fall 2011
Without waiting for Wilson’s response,
he placed the sole of his shoe on the Allstate CEO’s posterior and booted him
through the door.
Managing to land headfirst on the
plush Corinthian leather, Wilson anticipated the driver’s excessive car-handling
skills and braced himself for a continuous ride.
“Well, young fella,” came a voice. “Are
you just going to lie there?”
Wilson scooted his feet beneath him
and turned to face the owner of the
shaky voice that had just questioned
him. Standing outside the limo, braced
against the open door, was a very tired
looking, older man. His shoulders were
littered with mounds of dandruff flakes
and most of his shirt-tail was visible below the hem of his tattered suit jacket.
A wild strand of greasy hair had escaped
the old man’s comb-over and was dangling in a sloppy arch from the side of
his head. “Come on, get with it Tommy
boy,” he slurred. I’m the ghost of Christmas future, and by the look of things, I
haven’t got all night.”
Wilson climbed out of the limo and
came face-to-face with the ancient-looking fellow. “You’re Ed Liddy,” he stammered. “I knew I recognized your face. I
wasn’t quite sure before, but when I heard
you call me Tommy boy this time....well,
I just knew it.”
Wilson shook his head and laughed,
and said, “But Lidster, are you ever oldlooking.” Wilson reached up to touch the
other man’s bulbous, swollen nose. “And
the makeup job is really good this time.”
The old ghost smacked his hand away.
“Well, you might have seen through my
disguises before, but this time it’s the real
me.” The former Allstate CEO tweaked
his own nose and a crust of dried skin
flaked off in his fingers. “See?”
“Oh all right, Lidster,” Wilson said to
his longtime friend. “I get it; this is your
best prank ever. Come on, let’s get back
in the limo and go home.”
Quickly reaching out with his bony
hands, the ghost gripped Wilson’s arm
and spun him around. “This is no joke,”
he bellowed. “Look where you are.”
Wilson stared in disbelief at the sign
attached to the façade of the building in
front of him. It read: “Foreclosed. Gov-
Fall 2011
ernment-Controlled Asset. Keep out.”
Barely visible beneath the impressive
sign was the Allstate corporate logo.
“Oh, come on now, Lidster.” Wilson
pleaded. “This can’t be happening. What
caused this?”
The ghost’s face suddenly looked almost
translucent. “I am here by way of atonement for my part in this,” he began. “I realized too late that having all that money,
or even just the lust for money, would be
the cause of ruining thousands of people’s
lives. Sure, I tried to make people think I
had changed when I pulled my stunt with
AIG.” A sudden coughing spasm made
him choke. Clearing his throat, he went
on. “But all those times I came back to help
you finish the job I started at Allstate, was
just too much. I never should have gone
back. But, it was the money. I thought I
needed even more money.”
“OK, that seems to be your problem,”
Wilson said. “But I was just getting
started. I was about to score the biggest
payday of my life. We had it all set up.
You remember the drill: Cut costs as
deep as we can. Cost-shift every expense
possible to the agents. Prime the takeover pump with a few key acquisitions,
and BAM! Sell the whole thing for mega
millions and walk away with the status
and wealth of kings.”
Wilson looked up at the immense
skyscraper that had once been Allstate
headquarters. Someone had managed
to spray graffiti all over the second floor
windows. “But Lidster, what happened
to the deal?”
“The deal?” croaked the ghost. “I’ll tell
you what happened to the deal. With the
EEOC lawsuit, multiple agents suing
the company, agent morale in the toilet,
the IRS audit, and even the press turning
against Allstate, it was only a matter of
time until the YouTube incident.”
The ghost’s unhappy countenance
morphed in and out of view but finally
settled on a half visible shade of smoky
grey. “Ah yes,” he continued, “The YouTube incident. It seems a clever agent
shot a video of himself describing all of
the things Allstate promised new agents,
but never delivered. Things like owning
your own business and how agents only
needed $50,000 to open an agency. He
even showed how we manipulated the
agent agreement and how we constantly
changed the RFG requirements until it
became virtually impossible to make a bonus. Then he revealed how we mandated
that they transfer the ownership of their
business to us via afterhours call forwarding. The IRS is still having a field day with
that one. Not long after all of this, Allstate became toxic. Agents left in droves
and within a week of the incident Allstate
stock was trading at $1.23 a share.”
Wilson sank to his knees and cradled
his head. The reality of what the ghost
said began to sink in. “You mean I’m going to lose everything?”
The ghost shook his head. “This is but
one possibility based on your past actions. If you chose to act differently, then
your future, Allstate’s future, could also
be different.”
“And even if I quickly implement the
plan you and I started, it still will end up
this way?” Wilson asked, trying to be sure
of what he thought he was hearing.
The ghost could see where Wilson
was heading with his line of questioning.
“You’ll never be able to pull it off fast
enough, Tommy boy. Not to mention, all
of your stock options are under water and
nothing you can do will change it.”
Liddy’s ghostly shape began to shimmer. “My time here is almost up. I agreed
to repent for my past transgressions at
Allstate. This trip we are on tonight is a
first step for you, but it fulfills my obligations to a higher power. I should have
never lied to the agents and I now I know
there was a better way.” Putting an almost
transparent hand on Wilson’s shoulder, he
continued. “It may not be too late for you.
Think about making your fortune another
way. Think about the possibilities of making the agent a true partner of Allstate.
You and I both know the agreement we
drafted is a sham. And the ‘multilevel’ bonus scheme we used for our managers just
couldn’t hold up to the level of scrutiny it
got in the end.”
The ghost began drifting away from
Wilson’s side. Before the current Allstate
CEO knew it, he was all alone on the
deserted Chicago street. A brisk wind
kicked up and tugged at Wilson’s Armani suit. Nearby, a discarded newspaper
flapped noisily, breaking Wilson’s catatonic state. When he looked up, he saw
that Liddy’s ghost had left, so he quickly
got to his feet.
Without the ghost to chauffeur him
about, he knew he would have to figure a
way to get back to the “time” from which
he had come.
Walking over to the still idling limo,
Wilson cautiously stuck his head in
through the open driver’s window, half
expecting to see his old friend. But the
compartment was empty. Carefully
opening the front door, he slid behind the
steering wheel and shut the door. Reaching up to adjust the rear-view mirror, he
saw the reflection of a pair of glowing red
eyes coming from the rear seat. Startled,
Wilson screamed, jerked forward, and
hit his head on the center of the steering column, honking the horn. His head
bounced back and he found himself staring at the face of a balding man dressed
in a black suit and tie.
Standing outside the limo and looking
in through the windshield, was a not-sohappy man with a sour scowl on his face.
“Hey man,” he shouted. “What are you
doing in my ride?”
“What the...” stammered Wilson.
“Where am I?”
“Look man, I’m the temp driver here
to pick up a Mr. Tom Wilson from the
party upstairs. I ain’t got time to jaw jack
with you. You better get out now before I
get in trouble.”
Wilson scampered out of the limo and
stared in disbelief at his surroundings. He
was back in the executive parking garage
of Allstate corporate headquarters. Looking at his diamond encrusted Rolex, he
noted the time; 8:45 p.m., just minutes
after giving his Christmas speech.
Giddy with relief, he leapt toward the
driver, embraced him in a quick hug and
ran toward the bank of elevators. Rapidly
pressing the call button, he practically
squealed with joy when the mechanized
bell chimed, announcing the arrival of
one of the elevator cabs.
After what seemed to be the longest
ride of his life, Wilson burst from the elevator and ran to his office suite. Opening the twin 12 foot mahogany doors, he
hurried over to his desk and logged on to
his computer. He knew if he acted quickly, disaster could be avoided. He had to
act, didn’t he? The fate of the company
hung in the balance. Heck, his fate hung
in the balance.
After everything that happened that
night; the ghost, the limo, the agent’s
office, and the McKinsey meeting, how
could he not take action? He was after
all, the CEO of the largest publically
traded insurance company in the country, and he intended to keep it that way.
All the things the ghost had said made
him realize he did have a higher calling
as CEO. He had to act quickly and do
the smartest thing he could possibly do.
No, not just the smartest thing, he was
going to do the only thing.
He knew that there was a file residing
in his computer, awaiting his action. After years of preparation, all that had to
be done was either execute the file or delete it. Executing it meant accepting the
McKinsey doctrine and proceeding with
the final stage of implementation. This
meant firing more employees, agents,
and claim adjusters. It meant prepping
the company for takeover, creating the
biggest buyout of any publically traded
insurance company ever. It also meant
that thousands of agents would lose their
life’s savings and the very businesses they
spent years building. Making the wrong
choice now would be terrible and downright unconscionable, he thought.
No matter what he would do next,
one thing was for sure; lives would be
changed. His hand trembled as he maneuvered the mouse across the computer
screen. “Come on, come on,” he said in
anxious anticipation. But the computer
screen seemed to take forever to change,
making Wilson’s impatience bubble over.
Finally, the computer screen displayed
the icon he was looking for. Confident in
his decision, he opened the file marked
McKinsey and Company. Scrolling
down to one labeled “Executive Orders,”
he double clicked on it, revealing a sub
heading entitled 2012 agent deployment. When he opened the file, he was
presented with a series of paragraphs
followed by a highlighted box entitled
“Electronic signature.” He noted the box
was just as he had last seen it; prefilled
with his name and his title. He manipulated the mouse and placed the cursor
next to the delete button. Inhaling deeply, he paused and looked around his of-
fice. Half expecting to see the ghost that
had been his companion for the evening,
he exhaled and chuckled nervously.
Shaking his head he said, “Must have
been too much champagne at the party.”
His hand trembling, Wilson grasped
the mouse even tighter and slid it over a
quarter of an inch and clicked the accept
button. Springing up from his desk, with
his arms extended above his head, he began whooping and jumping for joy. “Nice
try Lidster,” he shouted. “You really had
me going. Best prank ever.”
After his third victory lap around his office, Wilson paused to catch his breath and
joyously exclaimed, “Tommy boy,” you just
became a rich man; much richer than the
old Lidster, for sure.” Still panting from the
exertion of the celebration, Wilson looked
up and realized he was standing next to
the glass wall in his office that overlooked
the city. He looked down and watched as a
stream of Allstate Home Office employees
spilled out on to the street far below. A wry
smile crinkled across his face and he said,
“Bah Humbug.”
From his lofty vantage point, Wilson
could not have possibly heard the outpouring of sorrow and disappointment
being expressed by the departing employees. Watching the scene below, he
actually thought he saw an employee give
another a congratulatory pat on the back.
“See there,” he thought. “They’re already
over it.” In truth he was witnessing the
comforting hand of a friend, patting
away the anguish his temporary secretary
was feeling over not getting a bonus.
Watching from the darkness of an unlit
corner in Wilson’s office was the dissolving wisp of ethereal plasma that had once
been Ed Liddy’s ghost. The ghost’s face
was fading in and out of existence and
was now barely perceptible, but faint as it
was, one could discern that the countenance was deeply and conspicuously sad.
The ghost knew it had failed. Flowing
across the hand-carved marble floor, the
apparition swirled between Wilson’s legs
and out through a small crack in the window’s casing and then it was gone.
And in the end, nothing had really
changed. This night, was just like any
other day in the life of Allstate CEO,
Tom Wilson. Unfortunately, the saga
continues. Ef
Fall 2011
sales and marketing
Harness the Power
of Your Customers’ Testimonials
By John Boe
Do you routinely use customer testimonials to enhance your sales presentations and strengthen your marketing
material? When it comes to effective
marketing and business development,
a glowing endorsement from a client is
the gold standard. Using testimonials is a
great way to build credibility and develop
rapport. In addition, customer endorsements are an effective sales tool when
responding to a prospect’s objections.
Nothing promotes credibility faster in
the mind of a skeptical prospect than a
heartfelt and sincerely written testimonial from a trusted third party source.
There are many ways to request a testimonial from a customer, but as with
most things, timing is everything. For example, don’t ask for a testimonial from a
customer that you’re meeting for the first
time, because you may appear overly ag-
Fall 2011
gressive. The most effective testimonials
are derived from three primary sources;
positive comments received from verbal
feedback, customer surveys, and thank
you notes. If you take the time to nurture
your key customer relationships and go
the extra mile when rendering service,
most of your customers will be happy to
give you a strong testimonial endorsement if you ask them for it.
Here are some valuable considerations
to help you get the maximum benefit
from your customer testimonials:
Always get your customer’s permission
prior to using his or her testimonial.
Never rewrite a customer’s testimonial
without obtaining approval.
The testimonial must show the person’s name, job title, and organization. If
you’re using a written testimonial, it’s a
good idea to include your customer’s pic-
ture as well.
There are three types of testimonial
formats to consider; written, audio, and
video. While written testimonials are
by far the most frequently used format,
audio and video testimonials have been
proven to be more effective.
Obviously, some customers have better writing skills than others. You’ll want
to coach your customers a bit on how to
properly structure their testimonials in
order to make them effective. Provide
specific guidelines and give them copies of your most powerful and persuasive
customer testimonials to serve as positive
examples.
Vague testimonials don’t really say
anything of value. The best testimonials use specific examples that backup key
selling points. For example: How much
money and or time did your customer
actually save by using your product or
services? How did your product or service solve your customer’s problems or
improve their lives?
You need to be proactive and set a
business goal of having a minimum of
twelve customer testimonials.
From an advertising perspective, a testimonial from a happy customer has the potential to be worth as much as a full-page
newspaper ad. Harnessing the good will of
your satisfied customers’ is the key to taking your business to the next level. Ef
John Boe presents a wide variety of motivational and sales-oriented keynotes and
seminar programs for sales meetings and
conventions. John is a nationally recognized
sales trainer and business motivational
speaker with an impeccable track record in
the meeting industry. To receive his newsletter, visit www.johnboe.com.
Affiliation with OPEIU
It Pays to Belong!
NAPAA recently affiliated with the Office and Professional Employees International Union (OPEIU),
AFL-CIO to help provide our membership with reliable communications on issues that affect Allstate
Exclusive Agency Owners and their customers by promoting professionalism and ethical practices.
OPEIU will also assist NAPAA in its mission of being dedicated to the success of Allstate agencies
and to advancing the independence and entrepreneurial spirit of its members.
The affiliation means real benefits to NAPAA members, who are eligible to participate in all OPEIU
membership benefit programs at no additional cost. These benefits include:
E&O deductible reimbursement of 20% of the deductible for any paid E&O claim up to $500 per
member per year.
A healthcare and Rx discount program through WellDyne.
Up to $50 payment for continuing education every two years.
Up to 2 towing/service calls per year (valued at up to $100 each) for all family members living in
the same household.
An identity theft service through the United Nations Federal Credit Union Financial Services.
Welcome Home – a real estate commission rebate program that includes first-rate real estate
companies such as Century 21, Coldwell Banker and Sotheby’s.
PerksCard – a national discount savings program.
Eligibility for three scholarship funds that could mean up to $6,000 for children and dependents.
Participation in the AFL-CIO Union Plus program that provides a better than competitive MasterCard rate, travel and entertainment discounts, legal services, auto discounts, and a financial
education service.
OPEIU brings NAPAA the strength of its membership base, making our voice even louder in the
legislative halls at the national and state levels, and in our efforts to affect Allstate’s behavior and
treatment of agents.
We urge all Allstate agents to join NAPAA, not only to receive great membership benefits, but also to
help us grow stronger and more effective in our industry.
Please fill out and complete the NAPAA application form in this magazine or sign up online at
www.napaaUSA.org. NAPAA dues are $350 per year, which pale when you consider the benefits and protections it provides.
Fall 2011
NAPAA Membership Application
and/or Action Fund Donation
NATIONAL ASSOCIATION OF PROFESSIONAL ALLSTATE AGENTS, INC.
P. O. Box 7666, Gulfport, MS 39506
Call Toll-Free: 877.627.2248 • E-Mail: HQ@napaausa.org • Fax Toll-Free: 866.627.2232
Name:______________________________________ Off Ph:_______________________ Fax__________________________
Street:________________________________________________ E-Mail:__________________________________________
City:________________________________________ State:_____ ZIP:__________
Is this address your q Home or q Office?
Home/Cell Phone numbers with area codes: ______________________________ / ______________________________
Status: q Active Agent q EFS Agent q Ex-Allstate Independent Agent q Other
(please explain) ________________________________________________________________________________________
Year started with Allstate______________________ Office Zip Code (If using home address) ___________________
MEMBERSHIP SECTION - (CONFIDENTIAL)
Regular (Gold) Membership Elite Membership (includes Producer Online Subscription)
Annual: $350
EFT: $29 /mo
Annual: $475
EFT: $39 /mo
User Name _____________ Password _____________ (Required to Activate Producer Online Subscription)
ACTION FUND DONATION SECTION Check or CC
$____________
EFT amount
or
$____________/mo.
PAYMENT SECTION
q CHECK – Annual: Please make payable to NAPAA and mail to the address at the top of this application.
q CREDIT CARD – Annual: I authorize this amount to be charged to my credit card.
(Please complete the information below)
Card type: q VISA q MasterCard q Discover q American Express
Name on account _________________________________________ Amount to be Charged: $__________ (Annual only)
Account Number __________________________________________ Expiration date __________ Security code________
Address on Card _______________________________________________________
Zip on Card_____________________
Signature of Cardholder ____________________________________________ Todays Date _____________ (9/11 EF)
q EFT (PAM) - Monthly (attach or fax voided check)
I understand that the amount stated above will be deducted from my checking account every month until instructed otherwise. I have enclosed a voided check and understand that the withdrawals will occur on or about the 20th of every month. Authorization Signature: _____________________________________________________________ Date ____________
PLEASE FAX APPLICATION TOLL-FREE TO: 866.627.2232
MAIL APPLICATION TO: NAPAA, P.O. Box 7666, Gulfport, MS 39506
Note: You do not have to be a member to donate to the NAPAA Action Fund
Fall 2011
letters to NAPAA
Continued from page 12.
.............
Jim Fish called me a couple weeks ago,
and I am very appreciative for him reaching out to me. He gave me hope...that via
NAPAA ...our rights as Allstate agents
will be heard one day.
I would like to become a member, especially to unite with all the NAPAA
Allstate agents. Unfortunately, I am a
newer agent of 4 years in California and
I continue to encounter lost cash flow due
to the outrageous leadership of the CA
managers and of those in Home Office.
Recently, CA implemented a new auto
rate plan that is destroying profitable,
long-term clients with 100/300 coverage.
Customers are outraged by the rate increase and are running away from Allstate
and my agency. My agency cash flow is
deteriorating at an unthinkable rate.
I would like to join after the next pay
period. Hopefully, my agency will have
written enough new auto business to offset the large volume of long-term profitable auto clients and cash flow that I am
losing because of this new, unthinkable
auto rate plan.
Thanking you in advance. As a united
front via NAPAA, justice will prevail for
all agents at Allstate.
.............
I’m not sure that agents have checked
their agency budgets and wallets to see
the impact of 10% vs. 8 %:
$1,500,000 premium X 10% commission = $150,000
$1,500,000 Premium X 8% commission = $120,000
This means a loss of $30,000 in annual
agency revenues, or a loss of $2500 per
month! And they want to do this when
our operating expenses are going up.
Sign me,
Going broke in Florida
.............
Having 13% of the agents as members
screams special interest group, unless and
until you reach 50% agent membership.
It’s my opinion that you and I will always
be portrayed as crybabies by the company and the world will buy it…
I say offer $50 trial memberships to every nonmember agent, get the numbers
then go to war. Just my 2 cents worth.
Editor’s Response: Thanks for the suggestion, but as much as we’d like to offer
memberships for $50 per year, it is just not
economically feasible. This is especially true
now because NAPAA has to pay a per member fee to OPEIU. In our mind, if agents
aren’t willing to spend a dollar a day to
make their professional lives better, there is
little hope for them.
.............
I’m a longtime agent who, believe it or
not, has had the good fortune to become
somewhat of a rock star. When I started
with Allstate in 1985, I did so because I
wanted to run my own business. But over
the years, I found that Allstate continuously placed roadblocks in the way of its
agency force, so I started to pursue music, my first love. When Allstate fired the
entire CA agency force in the 90’s, I was
one of the few who didn’t mind because
I had been forced to hide the fact I was a
singer in a rock band. This was in spite of
the fact that my band and I were weekend warriors at the time. Once I became
independent, I put more emphasis on
my musical career and we have traveled
to 440 cities in 115 countries, including
shows like the 2008 Beijing Olympics.
We also garnered a Billboard hit song and
a Guinness World Record. During that
time, I faithfully managed both careers
and kept my agency running smoothly
and even made Chairman’s Conference in
2008 and 2009, while the band was touring 6 months of the year. What originally
started as a hobby has become my main
occupation and now the band has tripled
the net income of my agency.
What drove me to pursue another career is the lack of job security that I felt
was missing with Allstate. I’m a guy who
will work seven days a week (and still do),
but who wants to pour their heart and
soul into a business when you have little
job security? So, I put my skills, time and
resources into the band and have built it
into a huge success. Had Allstate treated
its agents with respect, my agency would
probably be three times the size it is now
and the band would still be a weekend
hobby. This company is clueless as to the
harm it is doing to its own business by
driving good people away.
My agency hasn’t grown since I started
the band in 1995 and is just over $1.1
million in premium. Being a small agency, the financial requirements have become too much to keep up with lately.
Two of my key staff members have been
faced with life-changing tragedies recently and their effectiveness has waned.
As Allstate pursues the goal of fewer but
larger agencies, I will be one of those that
just won’t be here much longer.
By the way, we might be a great choice
to entertain at your annual convention.
I’d certainly work out a great deal for you
guys.
Thanks for all you’ve done for many
beaten-up, downtrodden Allstate agents.
.............
I retired 12/31/10 (agent 670370) and
would like to continue receiving your literature. I now have to beg other agents
for the email newsletter and magazine.
Appreciate your help.
Editor’s response: We only send out our
publications to retired agents if they are
NAPAA members. You can become a “retired” member at a reduced rate. If you’d like
to join, let me know and I’ll call to take your
member application over the phone.
.............
As always, the newsletter and magazine were fantastic this month. There are
some agents in a group that email each
Fall 2011
letters to NAPAA
other for support and I told them they
were crazy for not joining NAPAA. I
hope my book will sell, but there hasn’t
been much interest so far.
Can you do the favor of giving me the
number where I can report an LSP and
agent for unethical practices? It was in
the magazine a couple of issues ago and
now I can’t find it.
Editor’s response: Thanks for the kind
words. The confidential hotline to report
“questionable practices” is 800-427-9389,
or you can report online at www.AlertLine.com.
.............
I enjoyed meeting you, and it was my
pleasure to attend the NAPAA Conference. I learned a great deal with regards
to what Allstate agent are facing. This
was my first NAPAA Conference, and I
thought it was a huge success. You put on
a wonderful show.
.............
I wanted to share this [termination
letter] and I know you have seen these
before, but I wanted to share this with all
my fellow agents who have not yet gotten one. But it is only a matter of time
and is mostly due to the heartlessness
of our fellow employees who have been
running this company into the ground.
This termination will take effect four
days before my 63rd birthday and on the
26th anniversary of my being employed
by Allstate.
To be honest, I am relieved that I will
no longer be associated with the company, now that it is no longer run by people
who respect the good that insurance does
for the families of those who work for
them and those who we hold as clients.
This is the story of what happens when
corporations are taken over by pencil
pushers and numbers crunchers. Eventually, they will destroy it and everyone
in their path.
Colin T. Bent
Fall 2011
.............
Thank you very much for the opportunity to present at the NAPAA Conference. The event was very well organized
and the venue was great. I believe that
NAPAA is a very appropriate audience
as I am very convinced that a good portion of the membership have a need for
the services we can provide to them.
I am looking forward to next year’s
conference.
Markus Bruderer
Manager Investment Advisory Services
United Nations Federal Credit Union
.............
I want to thank you both for allowing
Capital Resources and me to again be
part of the 2011 conference. Although
attendance was down a bit, I believe
Capital Resources’ continued support of
NAPAA, the exposure we receive, and
your endorsement will pay dividends for
us both. Although we chat from time
to time, each year it is good to see you
and have that face-to-face fellowship. I
certainly hope that our relationship will
continue for many years to come.
Please let me know if there is any way I
can assist you or your members.
Thank you and many, many blessings
to you and your families,
Tom
Tom Sanders
Vice President
Capital Resources, LLC
.............
I hope I will be able to attend another
NAPAA convention, I’m sorry I wasn’t
able to go to this one.
I’m working with a business consultant
to sell my business. I hope it was a good
decision and that he’ll really be able to
help me.
Meanwhile, I just got another letter.
This one is for production. My manager
hasn’t spoken to me about it yet. I would
love to ask him some questions that
would force him to explain to me how
all of this is about being an independent
contractor.
So now I have an ALI letter and one
about growth and AF. Am I completely
screwed?
Editor’s response: We missed you at the
conference! It turned out very well. We had
a total of 10 speakers yet we managed to
keep the program on time.
Obviously, the warning letters don’t help
and they put you on management’s radar
screen. They may start bringing buyers to
you; don’t take the bait, refer them to your
business consultant. Otherwise, the buyers
will try to negotiate with you directly and
management may arm them with all of your
confidential reports. Buyers should not be
privy to your reports unless you agree to provide them. Another tactic that some mangers
use is to give buyers tips on how to “lowball”
sellers. “Oh, I’m going to have a big expense
because I will have to move to a retail office space,” or, “I hear the commission is going
to 8%, so I can’t offer what you’re asking.”
Again, I would let your business consultant
handle them.
.............
I just wanted to let you know that I sold
my BOB after 24 years with Allstate. I
did not receive a letter of termination nor
was I threatened. I simply grew tired of
Allstate’s lack of leadership. As recently
as 2009, I made the President’s Club and
earned a trip to The Big Apple. It wasn’t
that I could not do the job any longer;
I just did want to do it any longer. Our
uncompetitive rates, our outdated technology, and the lack of sensible underwriting took the joy out of going to work
every day. I feel blessed to have sold my
agency but am sorry for my fellow agents
who have been fired and others who will
be fired.
By the way, after all those years with
the company and my retention at 92%,
loss ratio at 35%, ALI at 87% for 2010,
I never even got as much as an e-mail
letters to NAPAA
from anyone in management to congratulate me on my retirement.
.............
I have been an Allstate agent for 8 years
now. I am so sick and tired of what Allstate is doing that I am selling my agency.
I started a scratch agency and grew it to
$1.5 million. I never did Internet leads or
telemarketing. I sent direct mailings in my
own county and went to their homes. I
have a very good book of business. When
my customers find out I am leaving, they
will be shocked. When, I get back into the
business, I bet a million dollars worth of
business will follow me.
.............
I’m wondering if you have any opinions as to Allstate’s new 8 and 8 contract and how it will affect the sale of an
agency. I am contemplating selling but
haven’t done anything yet.
Editor’s response: The 8 and 8 commission scale could affect your sale by as much
as 20%. We believe that book values will
plummet by the same percentage as the commissions. Think of it this way; if you were
a buyer instead of a seller, would you pay
someone the same price for a 10% return as
you would for an 8% return? Of course as
a seller, you could argue that the base level
commission of 8% can be increased to 10%
or higher with a little extra effort. I don’t
know about you, but if I was told I could
raise my commissions, I might say, “If it is so
easy to raise the commission percentage, why
are you still only earning 8%?”
.............
My sale will be to an existing agent who
will be merging my book into his. We are
expecting company approval this week.
We were told that certain agents would
be approved to buy and merge books and
that led to several agents showing interest
in my book. Then one of the prospective
buyers told me that he was informed that
even though he was approved to merge a
book with his, he could not merge with
mine because the company wanted to keep
my book from leaving a market that they
consider “desirable.” Since most existing
agents were not interested in operating a
satellite, that left an outside buyer as the
only viable option. Then the company did
a total about-face and announced that any
book purchased in my market could only
be merged into another agency within the
market, but if purchased by an outside
buyer, it would have to be relocated outside the market. Does that make any sense?
Naturally, all of the outside buyers lost interest because they wanted to stay in the
current market. Fortunately, one of the existing agents I spoke to initially has stepped
up and wants to merge my book with his.
Hopefully, it’s a done deal and I don’t have
to put up with management’s inconsistence
and manipulation much longer.
.............
I signed on with a cluster group last
year to get my new, but small, independent agency started. Not to complain too
much, but I was only given one standard
auto company and the non-standard
companies they gave me are uncompetitive. When I was with Allstate, I mostly
wrote nonstandard business because of
my office location.
Travelers is the one standard carrier I
was given and I can barely write anything
with them because they REQUIRE you
write auto and property together or
nothing at all, so you can imagine what
kind of commissions I’m earning from
them. Because of the market I’m in, I
might have 10 customers on the books
who accepted a QUALIFIED quote
from Travelers since December 2010. I
have to turn away many other prospects
because of Travelers high standards and
unreasonable restrictions and conditions.
Anyway, my 12 month contract will
expire in November this year, and according to my contract, I can resign
without penalty and keep ALL of my
business plus 100% of all of the com-
missions if I send them a written request
within 180 days after the term renews for
the second year.
My question is, what are your thoughts
regarding my desire to end my relationship with this group? Since I’ve figured
out how this independent agent business works, I have applied to and been
accepted and approved to write business
for Progressive, Nationwide-Victoria,
GMAC, Lincoln Benefit Life, Capitol
Preferred, Foremost, Everest, ACCC,
Permanent General and SCGA; all of
which are well-known standard and
non-standard companies with very competitive rates and coverage plans. They
fit the needs of my customer base for
now and offer me a chance to write more
business. Granted, it is not at all like the
Allstate business I had, but it is serving
my purpose to get my business started.
As always, I truly VALUE and respect
your opinions and advice, and it really
feels good to have someone like you in
my corner. If it hadn’t been for you and
your friendship during my Allstate days,
they would have taken complete advantage of me as a new and inexperienced
agency owner. Not to beat a dead horse
to death, thank you, and thank you again.
Editor’s response: I think you need to do
what is in your best interests. I’m a little
surprised that the agency group hasn’t provided more companies, but I don’t think
they are players in the substandard market.
Their focus appears to be the preferred auto
and property market, which is the market
you should be trying to penetrate. It is the
bread and butter business for most agents.
But if all you have is Travelers, it’s almost
like being with Allstate – because you have
few choices to write standard business. If I
were in your shoes, I would implore them to
give you a second carrier (or more, if you can
get them). If they can’t or won’t provide additional preferred companies, it may be time
to re-evaluate your relationship with them.
It is not hard to obtain contracts in the
non-standard market. But if that is all you
do, you will always be the “high-risk” mama
in your community. Travelers is a highly re-
Fall 2011
A Creed for Allstate Agents
I am an Independent Contractor…
1. I am an independent contractor and the owner of an insurance agency offering Allstate insurance products to
consumers in my community.
2. The operation of my agency is subject only to my own professional judgment.
3. I am free to determine the hours of operation, as well as the holiday schedule for my agency.
4. It is my decision to offer 24 hour service to my customers through the Allstate CIC, or not to.
5. I will produce insurance applications in compliance with Allstate’s guidelines, but will establish my own business
practices regarding how, when, and where the work will be done.
6. I am not subject to quotas or minimum production standards.
7. I am not subject to supervision, direction, or performance reviews from Allstate managers.
8. I do not provide reports to the company, outside of premium remittance reports.
9. I am available to meet with company management from time to time at mutually agreed places and times, but
attendance at company meetings and training sessions are at my option.
10. I may staff my agency with workers of my choosing. Allstate will provide binding authority approval subject to
licensing requirements and background check information only. All hiring, training and evaluation of my staff are
at my sole direction.
11. I am afforded the ability to contract with other insurance providers of my choosing for the purpose of securing
coverage where Allstate has refused application for coverage (right of first refusal).
12. Having made a significant investment to acquire prospect and lead information, all personal information and
quotes prepared for prospective clients by my agency are the property of my agency and may not be shared with
call centers or others for any purpose.
13. My contract with Allstate may not be terminated without cause, except in the event that Allstate no longer offers
insurance in my state. “Cause” is specified in my contract and not subject to change without prior consent of both
parties to the contract.
14. As an Allstate agent in good standing, I am an approved buyer for the purchase of additional Allstate agencies or
books of business.
15 I am free to sell my agency without unreasonable interference from Allstate. No buyer may be denied approval to
purchase my agency without cause. “Cause” is specified in writing in my contract and not subject to change with
out prior consent of both parties to the contract.
Fall 2011
letters to NAPAA
spected company and if you can write more
with them, your clientele will be more affluent and you’ll have less busy work, such as
taking payments and reinstating policies, etc.
Do the other carriers you signed up with
have volume commitments? If so, keep in
mind that they can hold you to your commitment and terminate the contract if you
don’t achieve it. As far as I know, most aggregators and cluster groups do not have
individual quotas, which is step above Allstate.
.............
Some years ago, my manager told me
and the rest of the agents in my market that we needed to understand that
“somebody had moved the cheese.” A
year later, after he had been involuntarily
retired ahead of schedule, I reminded
him of the cheese deal.
A few years later, I looked back at the
changes that were in full swing at Allstate; I developed a new take on “the
cheese.” Somebody had not just moved
it, they had stolen it. Worse yet, we were
being told that we had to pay for the
cheese! When the light of morning finally filled the world, it revealed that our
cheese was stolen by Allstate.
My memory of what things were like
back in the day is pretty accurate. Actually, 25 years ago Allstate was a caring
employer. Managers, agents and other
employees were a pretty happy family. My how times have changed! A few
years ago, I searched the Agency Gateway for the monthly listing of service anniversaries and birthdays to see if I recognized anyone. Lo and behold, I could
no longer find the listing. After a month
of waiting and searching for the updated
list, I called the regional office and was
told that the lists been discontinued due
to privacy concerns on the part of the
company. Privacy concerns? Say what?
Now in 2011, the real rationale has
become quite apparent. It is not about
privacy. It is all about not caring enough
to bother. Or worse yet, it might even be
about not caring. After all, if a party really cares about continuing a relationship,
they make an effort to address the concerns of the other party. In the new Allstate world, it is much easier to terminate
someone’s employment or fail to give
them a raise when the manager making
the decisions lacks empathy. Sadly, I believe we have now reached that point in
the downward spiral of the once proud
and caring Allstate Insurance Company.
Obfuscated behind the poor excuses
of trying to “grow the company,” please
the shareholders and impress the Wall
Street analysts, lies the blinding light
of the truth. Ask Mario DeLuca’s family how caring Allstate has become. Ask
longtime agent Jim Norton, who sold
his business after being told he was not
cutting the mustard anymore. Ditto that
for approximately another dozen longserving New Jersey agents.
I have asked the “caring” question to
agents and workers in other departments.
Many times. I have yet to have one single
person tell me that they felt that Allstate
cares about them or their family. Not in
more than a decade. This says a lot about
the state of Allstate.
I know another basic truth; Allstate
would be wise to revisit the Allstate Vision that it so heavily touted in the mid
90’s. You remember; the blue prism they
gave us? The focus was supposed to be on
our customers, our stakeholders and our
agents/employees. They’ve abandoned
two sides of the triangle; and if even one
side is out of kilter, it negatively affects
the whole. It is high time we fix this imbalance because things are now way out
of control at this company.
For those of you old enough to remember that chilling banner gently
wafting in the breeze in one of the final
scenes of the movie “On the Beach,” I
put forth the challenge: “There’s Still
Time Brother.” No, this is not about the
unforeseen consequences of nuclear war.
It is about the unforeseen consequences
of poor management at Allstate, a oncegreat insurance company.
.............
Letters and articles submitted
to NAPAA may be edited for
clarity, space, grammar, syntax
and suitability.
Names of agent contributors
will only be published with
writer’s permission.
Letters and other
submissions can be
e-mailed to
Exclusivefocus@napaaUSA.org
or mailed to:
NAPAA, P.O. Box 7666,
Gulfport, MS 39506
Advertising Index
ASNOA. . . . . . . . . . . . . . . . . . . . . . 7
BGI Marketing Systems. . . . . . . . 21
Capital Resources. . . . . . . . . . . . . . 3
Couri Insurance Associates . . . . . . 5
e-Agent. . . . . . . . . . . . . . . . . . . . . 41
Entertainment Promotions. . . . . . 33
Global Green Insurance Agency. . IBC
Hometown Quotes. . . . . . . . . . . . BC
Oak Street Funding. . . . . . . . . . . . . 9
Ovation Payroll. . . . . . . . . . . . . . . 37
Paragon Ind. Insurance Agencies. 23
Rhinotek. . . . . . . . . . . . . . . . . . . . 45
SIAA. . . . . . . . . . . . . . . . . . . . . . . 17
Smart Choice . . . . . . . . . . . . . . . . 29
Social Media for Ins. Agents. . . . 25
Sprint . . . . . . . . . . . . . . . . . . . . . . 10
The Woodlands Financial Group. . IFC
Wright Penning & Beamer. . . . . . 27
Fall 2011
Know the details…the questions to ask…
the coverages to recommend.
Speak their language.
Walk in…prepared to compete!
For more information contact:
Gerry Flores • 563.564.1800
the NAPAA market place
Agencies for Sale
Tucson
Arizona
Harold “Broc” Broccoletti
A070725@ALLSTATE.COM 520-744-3994
Asking Price: $375,000 PIF: 1,518 Premium: $1,515,114
Number of Staff: 1 Same location over 10 years
Green Valley
Brad Balmer
bradbalmer@yahoo.com 520-400-3097
Number of Staff: 2 L/R 38% Retention 89% Only EA
within 25 miles.
Arkansas
ElDorado
John C Rogers
jcr44us@yahoo.com
870-310-7460
Asking Price: Negotiable
PIF: 1,384 Premium: $1,572,574
Number of Staff: 2
Licensed in AR and LA. Retention 89.83. Possible merger with
another agency for sale, book
size approx. 2.6 mil
California
Los Angeles
Paul Park
gordian9@pacbell.net
323-845-4622
Asking Price: $0
PIF: 800 Premium: $1,000,000
Keep your agency by achieving
Ideal Agency status overnight.
Merger and partnership. Let’s
join forces. Call for details.
Sunnyvale
Raymond Barri
ray@barriagency.com
650-400-2061
Asking Price: $2,600,000
PIF: 8,335 Premium: $9,000,000
Number of Staff: 6
Agencies for Sale
Agencies for Sale
Colorado
Encinitas
Scott Stephens
(Encinitas Insurance)
manager@liquid-blue.com 760-942-4545
Number of Staff: 3 #1 Ranking on Google! LR 47%
Retention 87%. only agent in Encinitas. Certified GREEN agency
(the only one in SD County)!
Office is less than mile from the
beach.
Playa Del Rey
Robet Attala
robertattala@yahoo.com
310-920 -0798
PIF: 1,795 Premium: $2,167,000
Number of Staff: 1
Retention 87%. Allstate approved Retail location by the
beach. Mergable book
Monterey
Natalie Hungerford
nhungerford@allstate.com 831-642-6400
Asking Price: Negotiable PIF: 737 Premium: $838,000
Number of Staff: 1
Excellent downtown location,
beautiful seacoast.
Lake Elsinore
Luanne Holmgren Lopez
swedish_dawl@yahoo.com 951-816-2486
Number of Staff: 2 LR-32%(36 mm). ALI-75%.
Fresno
Lou Smaldino
louissmaldino@allstate.com 559-288-8280
Asking Price: Negotiable PIF: 4,387 Premium: $3,340,000
Number of Staff: 3 43 year old Agency
Pagosa Springs
Cathe Hill
hillagency11@yahoo.com 970-731-5190
Asking Price: $233,000 PIF: 1,036 Premium: $971,725
Number of Staff: 1 Only EA in Southern Colorado
for miles. Hi visibility location 14
years. Licensed NM AZ CO
Parker
Mike Moe
mikemoe2@gmail.com 303-841-1955
Retention 93.74, 2.44 policies
per HH.
Connecticut Derby
Christopher Lyle
lylesoforange@optonline.net 203-735-1845
Number of Staff: 2 BRE décor.
Rocky Hill
Gary Duran
a039723@allstate.com 860-558-0458
Number of Staff: 2 Florida
Edgewater Volusia County
Trey Harshaw
TreyHarshaw@Bellsouth.net
386-290-5654
Asking Price: Call
PIF: 1,600 Allstate only Premium:
$2,000,000
Number of Staff: 3
Includes $2 Mil brokered book
& $200K Flood Book. AS Book is
77% L10 with 55% of that old L10.
42% LR, 89% Retention, 80% ALI.
Agencies for Sale
Cape Coral
Peter Look
petegustorest@comcast.net
239-699-2401
PIF: In excess of 10,000
Premium: $13,000,000
Number of Staff: 7
2 Prime locations
Lake Mary
D. Brent Carli
dbcarli@allstate.com
407-322-3911
PIF: 4,200 plus
Premium: $5,600,000
Deland
Denny Cowart
denniscowart@allstate.com
386-734-6551
Asking Price: $575,000
PIF: 2,000+700
Premium: $2,950,000
Number of Staff: 1
Retention 88.11, LR 53%.
Haines City
Carol Eddy
CarolEddy@allstate.com 863-860-9555
Number of Staff: 2 Haines City
Mario Coquis
mariocoquis@allstate.com
863-419-8500
PIF: 647 Premium: $646,000
Number of Staff: 1
Allstate PIF: 318,
Premium: $300,000. Expanded market PIF: 329 Premium:
$346,000. Less than 750 Allstate
PIF, eligible for enhanced commissions.
Wellington
Julie Kime
juliekime@allstate.com 561-329-4416
Asking Price: Call for info PIF: 3,018 Premium: $5,600,000
Number of Staff: 3 Expanded market business not
included, Retention 87.75, LR
58.07.
Fall 2011
Agencies for Sale
Agencies for Sale
Georgia
Coral Gables
Roger Serola
rogerserola@allstate.com 305-446-4300
Asking Price: $675,000 PIF: 757 Premium: $2,500,000
Number of Staff: 2 Workable book for cross selling.
Naples
Cynthia Hill McIntosh
cmcintosh@allstate.com 239-434-7877
Asking Price: $565,000 PIF: call for information Premium: call for information
Number of Staff: 1 Homosassa Springs
Steven R Centola
stevecentola@allstate.com 352-382-4400
Number of Staff: 2 This is write county for Homeowners
North Florida
Confidential
fla041@gmail.com email only please
Number of Staff: 2 Plus $1,000,000 brokered book.
LR 40, Retention 90.
Miami
Arnoldo Arguello
ArguelloArnoldo@gmail.com 786-499-3415
Asking Price: Please call PIF: 3,000 Premium: $4,000,000
Number of Staff: 3 Retention: 84.8%, LR 51.2%, ALI 81.
Kissimmee
Dale Revels
dalerevels@gmail.com 407-924-5336
Asking Price: Call PIF: 1,100 Premium: $2,200,000
Number of Staff: 1 Allstate Hall of Fame Life Specialist
Fall 2011
Norcross
Private
georgiaagencyforsale@gmail.com 770-605-8215
Asking Price: Please call PIF: Please call Premium: Please
call
Number of Staff: 2.5
Rep, Lee Herring with Herring
Consulting Partners
Macon
Marion McMillan
MMCMILLANJR@ALLSTATE.COM 678-223-7397
Number of Staff: 1 Retention 88%. LR 44 will to stay
for smooth transition.
Atlanta
Laura Leidigh David Brazier
lauraleidigh@yahoo.com 404-233-5650
Number of Staff: 2 LR 46.9, retention 90.
Smyrna, Stockbridge, Roswell
Private
SAMM@MELCLEMMONS.COM 678-223-7397
Asking Price: Negotiable PIF: various Premium: various
Several locations for sale, call
for details
Atlanta
Mike Slayton
mike_slayton@yahoo.com 770-337-6405
Number of Staff: 2 Savannah
Phil West
a011207@allstate.com
912-748-6639
Number of Staff: 2 Agencies for Sale
Tyrone
Brad Gohsman
gohs31392@msn.com 770-487-1112
Number of Staff: 2 Chicago
Illinois
Ed Hogg (Rep) ehogg9@gmail.com
703-862-8168
Asking Price: Negotiable PIF: Premium: Call for info Seller Rep, call for details St Charles
Don Smith
A005235@ALLSTATE.COM
630-377-1969
PIF: 1,025 Premium: $1,127,769
Number of Staff: 1
Very high traffic location, low
rent, one of the most desirable
cities in Chicagoland area. Great
BOB, 2.3 PPH. 86% retention, low
LR. Retiring after 14 yrs
Kentucky LaGrange
Jerry Smith
a062926@allstate.com
502-222-7722
PIF: 1,920 Premium: $1,740,000
Number of Staff: 2
LR 42, Retention 86%. Additional
agency available in same county
Owensboro
Janet Adams
JanetSAdams@allstate.com 270-683-3199
Number of Staff: 2 Agent retiring after 23 years.
Maryland
Glen Burnie
Catherine Sorrell
cbsagent@aol.com 410-768-4446
Asking Price: $1,115,000 PIF: 3,027 Premium: $3,714,000
Number of Staff: 2 Retention: 90.14, LR 44.53, ALI: 85
Agencies for Sale
Salisbury
Fred Pastore
fredpastore@allstate.com 410-860-0866
Number of Staff: 1 Retention 90.61, LR 40.2
Several locations
703-862-8168
Asking Price: Negotiable PIF: Premium: Call for info Seller Rep Please call for
details. Michigan
Troy
Eric Terrien
et@allstate.com 248-813-1000
Number of Staff: 2 PSA, 91.7 Retention, 28.62 LR,
Branded Retail Environment,
Turn Key
Missouri
Joplin
Ron P Trujillo
rontrujillo@allstate.com 417-624-4916
Number of Staff: 1 Retention 85%, ALI 85%, LR 45%,
St Louis
Aaron Gaston
agaston2003@charter.net 314-895-3290
Asking Price: $90,000 PIF: 312 Premium: $365,937
Number of Staff: 1 Retention 88.15 ,LR 28.49, ALI 73.
Armonk
New York
John Donovan
jdonovan510@gmail.com
914-273-0700
PIF: 723 Premium: $898,753
Number of Staff: 1
CSRP 8/31/11. Closing 10/31/11.
Will sell BRE, 9 months old. Take
over lease or just buy book.
Agencies for Sale
Agencies for Sale
Agencies for Sale
Rego Park
Kerrville
James DeVito
racerinsurance@gmail.com 516-317-0177
Asking Price: $408,000/Negotiable
PIF: 946 Premium: $1,700,000
Number of Staff: 2 Growing, retention 91.53, LR
41.47. seller financing.
Milton Espinoza Agency, Inc.
mespinoza2@allstate.com 718-459-2000
Number of Staff: 1 Retention 90.49 %, LR 37.74
Gunnar Kephart
bakepkep@windstream.net
214-213-3491
PIF: 2,700 Premium: $3,000,000
Number of Staff: 2
Retention 87%, LR 53%, ALI 80.
Penfield
Roy Hart
RoyHart2@Allstate.com
570-228-7839
PIF: 1,237 Premium: $1,297,000
Number of Staff: 1
LR 42%, Retention 90.52
Baldwin
Rick Dalton
NAPAA@RochesterInsuranceServices.com 585-414-7425
Number of Staff: 2 excellent staff
PSA. Excellent location, LR,
retention. Brooklyn
Barbara Shamah Leeds
barbararose583@aol.com 917-301-2477
Asking Price: $1,200,000 PIF: 1,758 Premium: $4,600,000
Number of Staff: 3 47% LR, 89.67% retention
Island Park
Leslie D Leber
leslieleber@allstate.com 516-889-2100
Asking Price: $370,000 Negotiable
PIF: 1810 Premium: $1,816,300
Number of Staff: 2 Renewal ratio 90.86%
White Plains
Donovan McBean
D!
donovanmcbean@allstate.com SOL
845-893-8287
Pennsylvania
Olyphant
Buckingham
Andrew Bailey Sr
AndyBaileySR@allstate.com 215-794-1888
Asking Price: $1,239,675 PIF: 2971 Premium: $4,132,250
Number of Staff: 2 PSA. 2 books for sale
Rhode Island
West Warwick
Dennis LaRoche
dennislaroche@allstate.com 401-823-7170
Number of Staff: 4 Loss ratio 42%.
Tennessee Jackson
Angie Hughes
hughesangie@bellsouth.net 901-268-1818
Number of Staff: 3 Plainview
The Mednick Agency
barry@mednickagency.com 516-937-5700
Number of Staff: 2 Newly refurbished agency.
Austin
Texas Jerry Leonard
jleonard@allstate.com
512-970-8462
Asking Price: $875,000 OBO
PIF: 3,982 Premium: $3,550,000
Number of Staff: 2
Converse
Ray McKinley
dino566@aol.com 210-382-2906
Number of Staff: 1 Excellent location, will negotiate
Houston
Steve Hosier
hosierassoc@allstate.com
281-435-6909
PIF: 3,337 Premium: $5,800,000
Number of Staff: 4
Retention 91.18%, LR 50.08%.
Corpus Christi
703-862-8168
Asking Price: Negotiable PIF: Premium: Call for info Seller Rep, call for details Houston
Sharp Financial Group, Inc.
insagency@yahoo.com 516-606-1995
Number of Staff: 2 88.2% retention, 57% Loss Ratio
Round Rock
Michael P Leonard Agency Inc.
a048934@allstate.com 512-255-6222
Number of Staff: 2 Near Austin. Renewal Ratio
90.20
Agencies for Sale
Burleson near Fort Worth
James Brown
jamesbrown@allstate.com ALE !
817-447-6203S
G
DIN
N
Asking Price:
Negotiable E
P
Port Lavaca
Herman Novak
hermannovak@allstate.com 361-552-1935
Number of Staff: 2 Loss ratio 37%, retention 87.75%.
Virginia
Chesapeake
William J Faison Jr
billreen@aol.com
757-424-8860
PIF: 1,229 Premium: $971,433
Number of Staff: 1
Several locations, Virginia.
703-862-8168
Asking Price: Negotiable PIF: Premium: Call for info Seller Rep in VA and MD has
several locations. Call for
details. Kent
Washington
Kimberly Yadon
kimyadon@allstate.com 253-854-7003
Number of Staff: 1 Washington DC
Ed Hogg (Rep)
ehogg9@gmail.com
703-862-8168
PIF: Premium: Call for info
Seller Rep. Please call for
details.
Wisconsin
Madison
Terry Hanson
terryhanson@allstate.com
608-249-6900
PIF: 2790 Premium: $2,080,000
Number of Staff: 2
Turnkey. Excellent location.
Fall 2011
Insurance Professionals:
IS IT TIME TO BECOME THE OWNER OF
YOUR OWN INDEPENDENT INSURANCE AGENCY?
• Are you locked with a captive and all of the mounting restrictions?
• Are you tired of trying to write the business “they” want you to write?
• Are you just tired of working for someone else?
IF YOU ANSWERED “YES” TO ANY OF THESE QUESTIONS,
THEN IT’S TIME TO CONTACT EQUITY ONE!
Our GlobalGreen Insurance Agencies have access to:
• Multiple Carriers for EVERY Insurance Need
• Software Support
• State of the Art Agency Management System
• Bonus Program
Call or E-mail us today for
the Opportunity of a Lifetime!
636-536-5005
or Toll Free 877-452-5476
ask for Jeff Wilson or
jwilson@globalgreeninsuranceonline.com
Visit us online to see our growing list of carriers:
GlobalGreenInsuranceOnline.com
Travelers Insurance Company’s
2009 Agency of the Year

Where Will Your Agency Take You?

Transcription

Similar documents

Part-Time Benefits Information - Ruby Tuesday Benefits Enrollment

Catboat Rendezvous, Feb. 27-28

Final New Corporate overview - PRINTING.

Auto Insurance Made Simple

Renters Insurance Made Simple

Corporate Social Responsibility Report

May. 17 - St. Catharine`s Website