Author:  Steve Brooks, President, SBIS

The moment is here for the Independent Agency Channel. Let’s take back some personal lines market share!

Sure, independent agents may continue to maintain commercial lines market share—but the market is in for some substantial shrinkage, and this could last for several years. Shrinking receipts, payrolls, auto fleets, inventory, etc. will negatively affect commercial premiums, at least until this worldwide economic mess manages to correct itself.

But regardless of the economic recovery, we independent agents dominate commercial lines—we already handle 80% of it!

So where are we really going to grow? Personal lines—our share there is only 34%.

There never been a better time to take advantage of the value and stability in the personal lines space.

An effective alliance effort will benefit us independent agents and our superb business partners: carriers, vendors and trade associations. Let’s work together to capture a larger piece of the total $230 billion in personal lines premium. We know we are the best value proposition for the consumer!

Author: John Macdonald, Vice President – Agency Revenue Tools

Is it the soft market or the recession?  Agents praying for the return of the hard market:  Read the Ward Group report, and you might think again…

Author:  Peter van Aartrijk, CEO and Managing Director, Aartrijk

I help the Independent Insurance Agents & Brokers of America (the Big “I”) with market-share research every year.  We look at the three distribution channels: direct response, captive agent and independent agent.  It’s always fascinating to look at the numbers provided by A.M. Best Co. each year.

One of the ongoing trends overall is that direct response, led by Geico, are making strong inroads into personal lines.  They are consistent in their advertising spend, and it’s paying off.  That’s no surprise. But what may be a surprise is that the IA channel is still doing well in personal lines, and some carriers are writing very efficiently vis a vis the competition.

But my big takeaway from the data is this: Private-passenger auto insurance alone is equal to one-third of ALL property/casualty premiums, including commercial lines!  That means if you, the independent agency, is more interested in commercial lines you are walking away from a third of your premium and commission potential.  Personal auto can lead to account rounding—and in many parts of the country a well-rounded personal lines account looks like a commercial account in terms of revenue.

Sure, personal auto is a battleground, but I think IAs compete very well.  Make it a New Year’s Resolution to take a new look at personal lines.  Go for it!