2001 IBA West Officers Installed by Commissioner Low at Annual Luncheon

On Jan. 24, IBA West Outgoing President John Johnson of San Leandro-based McDermott-Costa Inc. welcomed a roomful of approximately 200 attendees to the 2001 Installation of Officers held at the Hotel Nikko in San Francisco. The day’s events also included the annual membership meeting, a hosted cocktail reception and a product vendor fair. Johnson made his final remarks as president before turning the spotlight over to California Insurance Commissioner Harry Low, who was there to swear in the 2001 officers.

“Recent market challenges make the role of our association even more important,” Johnson said. “The new officers comprise one of the strongest and most talented group of individuals ever to lead IBA West, and I am confident there are few challenges they cannot overcome.”

The 2001 officers are: Don Way of Thoits Insurance Service Inc. in Mountain View, president; Joe Hernandez of Hamman, Miller, Beauchamp, Deeble in Long Beach, president-elect; Neal Nakashima of Aon Risk Services in Honolulu, secretary-treasurer; Jim Armitage of Carr, Beedle, Hastings and Dennis in South Pasadena, state national director.

The 2001 IBA West Board of Directors includes: Megan Colwell of Woodruff-Sawyer & Co. in San Francisco; Stanley Simpson of Buckman-Mitchell Insurance; John Barrett of Marsh Inc. in Los Angeles; Javier Rodriguez of Rodriguez Insurance Agency in South Gate; Don Chambers of SAFECO Insurance Companies’ Southern California regional marketing department; Timothy Malloy of Malloy, Imrie & Vasconi Insurance Services LLC in Napa; Bruce Maxwell of John W. Knight Insurance Agency in Glendale; Gay Porter of American Insurance Agency Inc. in Hilo, Hawaii; Dona Shurtz of SPSP Insurance Group in Fresno; Pamela Sullivan of Sullivan & Curtis Insurance in Seattle; and Andrew Valdivia of White & Co. Insurance Inc. in Santa Monica.

After officially swearing in the new officers and regional directors, Commissioner Low addressed the group and “welcomed back the CDI.” “I realize that past relations were not good, but I’m very grateful for this opportunity,” Low said. “In December, we established a new set of values at the Department. Our vision is to be the best insurance department in the nation. Our strategic goals are ambitious, but realistic.”

Low is well aware of the challenging road that lies ahead, and rather than hide behind closed doors, the Commissioner has been doing his best to attend as many industry functions as his busy schedule allows. “I look at the challenges as learning opportunities,” he said. “And I welcome these challenges. This is an opportunity to do some public service.”

According to Low, workers’ comp is going to be a major issue before the Legislature in the next session. Other external policy factors facing the CDI in the upcoming year include the California Earthquake Authority, Gramm-Leach-Bliley, and the impending oversight of NARAB. “There are strong forces requiring us to do something this year [with workers’ comp],” he said. “So our plate is quite full here at the CDI…and we’re working very hard to build a strong team.”

Low concluded his speech by stressing to the audience the importance of strong relationships when it comes to delivering insurance. “Insurance—it isn’t glamorous, it isn’t obvious, it doesn’t provide instant gratification; but it matters when you need it most,” he said.

Newly installed IBA West President Way took to the podium following Commissioner Low. “This year, we will focus our efforts on our members, recruiting new ones, retaining existing ones, recapturing lost ones, serving their needs and listening to their wishes,” Way said. “We have an ambitious yet achievable set of numbers for membership, for finance, for benefits and programs…together we will have a great year.”

IBA West members in attendance received the added bonus of a keynote address by Boh Dickey, president and COO of SAFECO Insurance Companies [Editor’s note: Dickey since resigned on Jan. 30]. Dickey’s address, entitled “It’s Still a People Business,” offered an insider’s pragmatic view of the industry today and what direction he envisions it going in the future.

“Insurance is still a business of people, and Commissioner Low alluded to that,” Dickey told the crowd. “It’s a business of honest people…keeping promises…a machine cannot—and will never be able—to do that.”

His message was clear that agents and brokers cannot ignore technology. “We need to adapt to technology, but know that it’s not going to replace us,” Dickey said. “Don’t get distracted, and stay close to fundamental things you do well.”

Even though he admitted that the industry has been changing, Dickey is convinced that the pundits are wrong. “The Internet was going to be a magical way to sell insurance and it was going to take over the industry; banks would merge with insurance companies and a few conglomerates would prevail; direct distribution of insurance is best—all of these messages have been distracting and confusing to our industry,” he said.

There is no doubt that the future is going to be a little bit different, Dickey said. “But there are a lot of things that won’t change. For example, integrity will never go away in our business,” he explained.

In closing, Dickey shared with the audience his recipe for success: agencies need to expand their product offerings, attract new, young blood, and keep a close eye on perpetuation. “Focus on those things during the next two years and you’ll be successful,” he concluded.

Topics California