ASPN CEO Says Industry Challenges Can Be Met

Aon Specialty Product Network (ASPN) President and Chief Executive Officer Jerry Tegan knows that all is not perfect in the insurance world. However, he believes that offering a good listening ear and networking can go a long way in meeting any challenges. Tegan talked with Insurance Journal as the 2004 Aon Resource Fair in Banff, Alberta, Canada came to a close last month.

Insurance Journal: How did you feel this year’s event went compared to events in the past?
Jerry Tegan: This (2004) far exceeded any of our past resource fairs and that’s because we get better at doing them by experience. The reason I felt it far exceeded others was that it was really listening to agents before, talking about things that were important them. They noted that it’s great to be in the display area on a one-to-one basis with the principals of those companies, but there are also times where you want to learn more about a particular company or specialty that they’re in. With the breakout sessions, we were really able this time to get the provider companies to zero in on the products and programs and how they relate and may fit with the clients the agents out there have today. When I look at this year compared to others, the breakout sessions were superb. Normally at a resource fair like this where you’re bringing agents in from across the United States, most do not know each other. It always takes that first day to break the ice. The agency group that was invited this year and along with all the hard work by the ASPN RVPs prior to, the agents came to this event and before the first night’s dinner was really over, the networking had begun.

IJ: There will always be cynics out there when you bring agents in and you’re paying for all their expenses. Do you feel you get ‘honest’ feedback from them at the end of the conference, be it positive or negative?
Tegan: I really feel we do and part of that is because we’ve tried to make it evident to them that if they’re uncomfortable giving feedback in a session, give it to their regional vice president. We’re also sending out a questionnaire with regards to the resource fair where they can give feedback. Was this breakout session really useful or what did they not do that we should have done? I did hear some honest feedback right away. One of them was at the Swett & Crawford breakout that said it was great to get in and talk about all the different offices, etc. but I would have loved if Swett & Crawford would have given some examples of some tough types of insurance risks that they’re writing and how they’re doing it. That may have tripped a trigger with my agency going ‘that is a great idea, we need to be doing that.’ We’ve tried to make it so open that agents will tell us how they feel, good or bad.

IJ: One agent at a session commented that she would like to see more communication between the agents and providers. Do you agree this is an issue?
Tegan: I thought that was a good point. We’ve already been talking about that regarding communications. We feel we do communicate, but probably never enough. I think a lot of times we ‘assume’ they’re (agents) aware this market changed or we’re no longer in this. We have to quit doing that. We’ve been talking internally with regards to our quarterly newsletter that we need to be more informative, not only talking about a particular product or provider company, but also be more informative in our own communications. How does that issue relate back to the agent’s need and what their client may need? We’re also talking about that with our Web site; it does give a lot of information, but maybe we’re not drilling down enough to provide more communication for the agents.

IJ: What other concerns did you hear from agents at the fair? One thing we heard was that the industry needs to get some ‘younger’ blood.

Tegan: I couldn’t agree more. We have to start making our industry more exciting and share with young people today that this is a great career and there are so many aspects of it. There is marketing, underwriting, risk management, claims handling, etc. There are many different parts of the insurance industry. I think we all do a poor job of sharing the excitement and growth potential of our industry. Here at ASPN, I’ve told our regional VPs and myself that we need to get more involved in speaking engagements talking about our industry. Internally, during the summer months and through vacation times, will bring interns in from college who are just looking for summer work and try and get them really acquainted and involved. They just don’t answer the phones, they work with the marketing specialists; they take phone calls from the independent agents; they start working with the provider companies. When I look at all these provider companies, I can’t imagine all the intellectual capital that is sitting in all these companies. There has to be a way to pull some of that intellectual capital out and start to find recruiting, training ways to bring individuals into our industry. We’ve just not done a good enough job as an industry selling just what our industry is all about. I made it a point when I brought our marketing specialists on to teach them the insurance business and how exciting it can be. Some had limited insurance experience, but they were young and just out of or two or three years out of college and really full of energy.

IJ: What are the goals for the ASPN in the coming years?
Tegan: I see us maintaining what our original charter was and that was to find ways to bring new products in and continue to educate and train the independent agency network on new products, programs and services that will help their agency grow. We are starting to expand our horizons at ASPN by bringing in specialty groups like AON Re on the reinsurance side. They can bring markets, reinsurance solutions, etc. to an agent on a book of business.

IJ: What do you see as the greatest challenge out there for independent agents?
Tegan: I really believe it is for them to take care of their clients’ needs. It is difficult any more to say that you’re just a P/C operation and my client is the XYZ agency and I write their P/C. By the way, I don’t write their health, their 401K. I believe today you have to have the ability to take care of your clients’ needs. Otherwise, they’re going to find someone else that they can go to that can bring them all of these services where they have one go-to place. Agents have to think of expanding outside their comfort zone.

IJ: How much do you see technology continuing to play a part in expanding this industry?
Tegan: If you look at where it is today, three years from now it will be three times that. What we’re doing here today will be completely outdated in two to three years…. I believe being on top of technology is crucial.

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