SIAA Keynoter Describes Successful Agents as Smart, Efficient, Well-Informed

“The best way for a consumer to buy insurance is to use the services of an independent agent, but to be successful that agent has to be smart, efficient and well-informed,” Mike LaRocco, Safeco Insurance Companies president of Product, Underwriting and Claims told members of the Strategic Independent Agents Alliance April 15 during SIAA’s 19th semi-annual business meeting at the Marriot World Center in Orlando, Fla.

LaRocco, the keynote speaker, joined Safeco in 2001. Under his leadership the company has emerged as one of the most efficient and profitable companies selling personal lines insurance exclusively through the independent distribution channel.

“A key factor an independent has is that at the point of sale the independent agent can look the customer in the eye,” LaRocco said. “You know things about the customer and can make changes every day.”

One of the most important factors in the insurance business is consistency, according to LaRocco. He said companies that use only a few points to determine how much to charge for a policy can’t possibly compete with companies like Safeco that often use systems involving 35 or more tiers.

LaRocco also said that even with an elaborate rating system, if a Safeco agent calls to explain that he personally knows a customer and provides reasons why they qualify for a better rate, the company takes such personal factors into consideration and often bases the policy cost on the agent’s evaluation.

In the past, according to LaRocco, insurance cycles have had a major influence on how companies sold their products. He pointed out that in some years prices often fluctuated upward by as much as 30 to 40 percent; while during other years they might drop 20 percent. He said that such fluctuation made it easy for agents to make dramatic mistakes in pricing their policies.

“Successful companies use technology to understand, price and sell their product; use data mining and skill sets to predict the future and flatten out such cycles,” LaRocco said. He explained that companies that rely on paperwork and single price points to make decisions often under-price products, lose money and often don’t stay in business very long.

LaRocco described SIAA as a “pioneer” in changing the distribution force. “It’s important to be smart, efficient and have smart partners,” LaRocco explained. He said that in property-casualty lines lots of companies have come and gone because they did not understand how to price their products.

SIAA’s business meeting continued throughout Friday afternoon with breakout sessions during which members met with representatives from The Hartford, Travelers, Safeco, Liberty RAM, Zurich, MetLife, Sentry (Dairyland) and Bristol West.

“The meetings and breakout sessions emphasize networking and learning,” explained Jim Masiello, SIAA chairman. “The purpose of the breakout sessions is to permit various companies to focus on agents from their region and for regional groups to have the opportunity to compare notes.”

SIAA is an international, independent insurance agency network comprised of large master agencies and local independent agencies, as well as direct writers, captives, producers and life and financial service agents who become independent strategic participants in our master agency network.

Topics Agencies