LAAIA President Rivero Urges Agents to Strike Balance Between Technology and Direct Client Contact
When the Latin American Association of Insurance Agencies was establishing itself in the late 1960s and early 1970s, most of the members were recent Cuban arrivals who had accepted the fact they were not returning to their homeland any time soon, according to newly-elected LAAIA President Nestor Rivero.
“They had a need to bond and help each other and that is why the LAAIA was established,” Rivero said. “Today the need to bond as Latinos is still alive, and this association continues to be a home for all of us.”
A 20-year LAAIA member, Rivero began his insurance career as a clerk in 1973, filing and doing odd jobs in an agency.
“Like most employees in the business we start at the bottom,” Rivero said. “If you survey insurance personnel, you will find most insurance professionals got into the business by luck or lack of it — unless you were born into an insurance agency family.”
Rivero believes agent associations and networking among other associations are crucial to the successful proliferation of independent agencies. He said the cooperative spirit is essential in nurturing business opportunities, promoting education, finding employment and providing financial information.
“Each association has its own character and attracts different people, but we really all do the same – help our agents help customers,” Rivero said. “It is the duty of each association to reach out and stay in tune with the other associations regardless of their size. By working together we can have a greater voice.”
Rivero said LAAIA’s members have improved the association’s image significantly over the past four years.
“We have increased the presence of national insurance carriers and have created a network of agencies and companies like never before,” the president said. “I believe every board leaves a legacy. We have been able to create an atmosphere of goodwill.”
Rivero has direct leadership experience with sister associations. He served two years as a specialty program chairperson for the with the Florida Association of Insurance Agents; two years as vice president with Specialty Agents; and four years as specialty coordinator with the Independent Insurance Agents of Dade County.
The LAAIA does not claim a specific niche of the market, according to Rivero. The association’s members represent many companies and try to write a diverse span of business, he added.
“Our clients include a mix of recent arrivals and the new generation of Latino-Americans born from Latin families who still identify themselves to the Latino culture,” Rivero said.
As an independent agent feeling the effects of the soft market, Rivero says he can’t risk confining his agency to one specific market. His agency, Miami-based Tropical Insurance, employs 14.
“Our agency volume has dropped from $13 million premium sales in 2006 to a projected $10 million in 2008,” Rivero reported. “This drop is due to the soft market and the drop in premium. In actuality we have grown our insured numbers by 15 percent. Tropical is financially sound.”
Embracing Technology
Rivero urges agents to strike a balance between advances in technology and the need to maintain direct client contact. He says it is important to incorporate technology into daily operations and “eagerly”encourage new methods of conducting business.
“This is the time to implement creative management systems, comparative ratings, and document imaging into our agencies,” Rivero says. “When we accept that technology is nothing to fear but rather something to embrace, we not only excel in our careers, but also strengthen our credibility as insurance professionals, excelling in service and maintaining the competitive edge.”
Rivero is concerned, however, about one aspect of technology: that consumers are being encouraged to seek and compare insurance quotes to find “premium heaven within the Internet.” He says some are led to believe that with just a few strokes of the keyboard, and eliminating the independent agent, they can save money, too.
“Like all intelligent life forms, the independent agent has learned to adapt and evolve,” Rivero pointed out. “We see the Internet as a resource that can help us grow rather than a lonely information highway on which we have no Sunpass.”
Rivero emphasizes the importance of remaining united with sister associations, partner companies and business associates through membership in LAAIA. He encourages continued attendance at monthly meetings to take full advantage of networking with other professionals.
“We build our business, like my grandfather before me would say, ‘one handshake at a time,'” Rivero noted. “It may be slow, but it’s steady, and it’s sure. Take pride in what we have accomplished for it is no small achievement.”
As Latino purchasing power continues to grow, corporate America realizes the need to attract these potential markets.
“The need for this association can only increase as Latino needs increase,” Rivero said. “The numbers are staggering.”
The LAAIA fosters young agent participation to ensure the association’s continued growth and influence.
Young Agents
“The young agents are an integral part of the association – they are the future,” Rivero said. “The young agents need to know how and why the LAAIA was established to be able to keep the soul of the association alive. In return, we help the young agents to advance in the field of insurance by promoting education, fraternity and helping them in their everyday struggle. I wish someone was there when I opened my agency in 1976; I was 23 years old had no one to direct or help me with the agency.”
The LAAIA held its annual convention in Broward in July where Rivero formally accepted office as association president in front of the group’s 250 members. The group has planned 10 monthly meetings over the next year including one in Tallahassee and one in Washington D.C.
While Rivero says his association’s members have survived in the face of adversity, he adds that it is no longer enough just to survive.
“We have endured the test of time, and we have prospered when most thought we would perish,” he said.
“As an association, we can reach far beyond our current expectations and claim our respective place within the insurance industry. And soon, for the first time in Florida, the CSIR program will be taught in Spanish. The possibilities are endless.”
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