To gain some perspective specific to branding for insurance and insurance agents, we spoke with Dave Evans, executive director of Trusted Choice, the “home brand” of The Independent Insurance Agents & Brokers of America (IIABA), and Ted Besesparis, senior vice president of communications for the National Association of Professional Insurance Agents (PIA). Both men and the organizations they represent clearly take the concept of branding seriously.

FL UW: Can you tell us how you define branding as it relates to your member agencies?

Evans: There is no one definition. It's literally the essence of everything one does. It's the experience the customer has from working with the organization. And it's important to consider that everyone has a brand, whether they know it or not.

Besesparis: Branding isn't really a new concept. It's been around for many years, but we just called it by other names. Branding really describes your competitive advantage, who are you and what your value proposition is to the consumers in the marketplace.

FL UW: In your opinion, what has changed (if anything) that's causing you to place an emphasis on branding for your member agencies?

Evans: Up until a few years ago we had a zero sum game and basically it was captive agents versus independent agents. At issue was who could best serve the customer. Everyone got their fair share and it worked. That changed primarily due to technology, and the local main street agent no longer had the same grip on local business. Business went from a geographic emphasis to more of a technical one. Direct writers have a brand, State Farm and Progressive agents have brands; independent agents need to pay attention to their brand as well.

Besesparis: As respect to PIA, we did not approach the issue from the perspective that our member agents needed a new identity. Our agents already have an established identity as “Local Agents Serving Main Street America.” They are satisfied with that identity because it accurately conveys who they are and what they offer to customers. What we have done is take what the member agents already had and packaged it and helped them market it. We try to make use of our platform on a national basis to get the word out, but the PIA branding program is not top-down. It's a grassroots, local program for our local agents.

FL UW: There's a wide variance in perception among business owners, including agency owners, as to how customers perceive a business or service, where they get the information, how they “shop” and so on. Do you feel that independent agents understand the change that is happening?

Evans: Yes, and the soft market has helped agents realize that things may have to be done differently. Over 10,300 agents in Trusted Choice speak to the fact that agents do “get it.” Some of the factors involved include the need for standard practices, capabilities, and markets to perpetuate the agency. Branding the agency requires that the owners look at all of these areas. In addition, carriers are looking for agencies to be more of a marketing force, as opposed to just a sales force.

Besesparis: Absolutely. We've been pushing the concept of a changing marketplace for years, especially the idea that you can't “do” marketing once and then you're done.

In fact, we're working on a next-generation of tools that will help our member agencies in the ongoing effort to establish and improve their public image and marketing specifically to Gen X and Gen Y consumers. We'll be unveiling that campaign in the first quarter of this year. We're always working with the agencies on new and better ways to deliver the message.

FL UW: Carriers are dealing with these same issues concerning their brands. How have branding changes at the carrier level impacted this dynamic at the agency level?

Evans: In general, carriers got the concept of branding and broad marketing before the agency force did. That in itself creates an interesting tension. Insurance companies have increased pressure in a number of ways on agents, including modifying their carrier identity to include functioning as a direct writer. While the tension is real, there is still room for retail agents in the picture. Most carriers really want producers to be out seeing clients and using that “on the ground” advantage to the fullest. And of course, independent agents more than ever can capitalize on their ability to personally customize coverage for each unique insured's situation.

Besesparis: I think the impact of direct writers or captive distribution channels serves as a motivator for our independent agents. GEICO, as an example, has spent hundreds of millions of dollars on their TV advertising and our agents compete with them and other direct writers. It's also a motivation for the agents to co-brand with the carriers they represent, especially those with a highly recognizable, positive public image. We have 63 carriers that have joined with us in our branding initiative, and we're pleased to have recently added Travelers to that list.

FL UW: Is it possible for an agency to be successful by simply continuing to conduct business the way it has historically conducted business?

Evans: Agents just trying to maintain modest growth levels are competing with other agents and carriers that are trying to aggressively grow their business, so I'd say that agencies looking to maintain the status quo are in trouble.

Besesparis: If you're talking about marketing and advertising the same way year after year, no.