Pride in the Independent Agency System

Over the past five years the insurance industry has endured the entry of banks into the field; faced heinous attacks that throttled the industry and economy; dealt with the good and the bad that comes with a hard market; and has operated businesses successfully despite dysfunctional legislative systems. Despite all the competition and hardships, the independent agency system has held strong and stands as proof positive that independent agents bring value to the industry and their customers.

The independent insurance agency system has endured because it continues to provide valuable services to its clients and community. When a client files a claim, the agent is there throughout the whole process to make the ordeal easier. When a local little league team needs a sponsor to buy uniforms, the agent is there. In fact, he or she often is coaching the team. When legislation threatens to remove consumer protections, agents are in their lawmakers’ offices outlining the importance of protecting the insurance buyers.

However, regardless of all that independent agents do for their customers, their community, or the industry itself, agents still struggle against long-standing misconceptions about the insurance field.

One battle the independent insurance agent continues to face is the old, negative stereotype of the slick, fast-talking insurance salesman. Independent agents must take an active role in conveying a positive image. Doing this is crucial. The future of the profession, the ability to recruit new talent, maintain relationships and affect legislative change for the industry depends on the ability to overcome the prevalent stereotype.

Perpetuating a positive image is as easy as independent agents speaking proudly to others about their business and what they do for a living. Agencies usually span generations, with multiple family members taking part in the business. This is becoming rare in today’s marketplace and is deserving of praise. Additionally, agents are active in their communities and know their policyholders. When a claim is filed, the claimant speaks to someone with whom he or she is familiar and who is familiar with the insurance policy. It is important that we take every opportunity to voice our pride in our profession–and by all means to correct those who disparage our image–in the media or in person.

I am proud to sell insurance. I am proud that my daughters have joined me in my family business. I am proud to work in a field in which my colleagues and I are counselors, advisors and friends to the clients whom we serve. As agents, we are familiar with our clients’ lives; we make certain they have adequate coverage when changes occur to their property or family, so they can be compensated properly in the event of a loss. And should damages occur, we involve ourselves throughout the claims process to provide an additional level of assistance and peace of mind when it is most needed.

Although we are independent agents, we are not alone. Agents need to unite to face adversity. Independent insurance associations provide a support system professional independent agents can rely on–for information, education, advocacy, networking and guidance. A united front and an excellent support system–these are the keys to the independent insurance agents’ well-being and success. The accomplishments we have enjoyed are founded in our ability to work cooperatively and present a unified message about our industry. The fraternity of independent insurance agents is the cornerstone of our success.

N. Stephen Ruchman is president of the Professional Insurance Agents of New York State Inc. and Ruchman Associates Inc. in Rockville Centre, N.Y.