other voicesAmerica Needs Insurance Reform NowBY DARREN YANCYThat’s right, an insurance agent talkingabout insurance reform.I’ve spent 15 years representing NationwideInsurance as an agent in Texas.In that time, I have worked hard to builda successful business the right way. Most<strong>of</strong> my competitors share my commitmentto honest representation <strong>of</strong> theirclients. As direct writer agents, we arethe personal link, the face <strong>of</strong> the insuranceindustry.Direct writers see and feel the movements<strong>of</strong> the economy on a very personallevel through our friends, our familiesand the clients that we work hard toserve. When things are tough, we feel itlong before many other businesses andindustries.Folks, times are tough now and everydirect writer in America can tell youstories about how the economy impactsthose we do business with each day. Oureconomy is in turmoil and so is our industry.How we respond reactively andhow we address important issues proactivelywill determine the fate <strong>of</strong> our industry.Today, we face carriers with everchangingbusiness models, alternativedistribution channels, and increasedcompetition. With so many forces outside<strong>of</strong> our control individually, we mustrely on a stronger commitment to ourcustomers, a better work product andimproved responsiveness to compete inthe marketplace.Years ago, major insurance companiesand direct writers shared in the benefit <strong>of</strong>working together toward a common goal<strong>of</strong> making an honest pr<strong>of</strong>it while protectingthose we insure. Over the years,a number <strong>of</strong> well-intentioned changeshave had a negative impact on our industry,our reputation and the way weconduct business.In recent years, direct writers havebeen required to look into “alternativedistribution channels” that have resultedin a shifting <strong>of</strong> costs, pricing differences,increased paperwork and ultimately lowerpr<strong>of</strong>itability for direct writers. Thosechanges <strong>of</strong>ten harmed the working relationshipbetween the company, theagent and the customer – a relationshipthat must be built on trust, performanceand fairness. The customer is the focalpoint that must be protected. If the carrierslose sight <strong>of</strong> providing quality serviceand prices to the agents that writethe clients through that channel, thenthe carriers lose premium, pr<strong>of</strong>itabilityand the ability to compete. We, in turn,lose our businesses as our core clients aredriven to other channels by the carriers.Ultimately, the client loses the relationshipthat has advised and guided themin their insurance protection decisions toone that may have no vested interest intheir successes or failures, such as a servicecenter representative or Internet site.While we, as front-line foot soldiers, seethese flaws, some <strong>of</strong> the carriers may not.That means, as direct writers, we mustact together to protect both our customersand our industry.Industries that fail to see flaws inprocess regularly find themselves diggingdeeper and deeper holes that canbecome nearly impossible to ascend. Theinsurance industry has been a drivingforce behind the American economy andAmerican success for generations. Nowis the time for all <strong>of</strong> us to assess wherewe’ve been, where we are and where weneed to go.Our industry, particularly the future<strong>of</strong> the direct writer, is at a crossroads.The direct writers and the carriers mustcome together to create the reforms necessaryto make it easier to price, accessand deliver products for our customersusing the only channel that was designedwith the vested success <strong>of</strong> the client inmind – the agency force. Failure to doso in this economy may well make dinosaursout <strong>of</strong> all <strong>of</strong> us.Darren Yancy, a direct writer for NationwideInsurance, is running for the UnitedStates Congress in Texas District 17. Inaddition to understanding the needs <strong>of</strong> hisDistrict, Darren knows and understandsthe challenges facing direct writers and thecarriers that utilize them. For more abouthis ideas, visit his Website at www.darrenyancy.com.24 — <strong>Exclusivefocus</strong> Spring 2009
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