AA&B: What's the thinking behind the formation of this organization at this particular time?

Brooks: The moment has never been more right for a coordinated movement. An effective alliance effort in terms of capturing personal lines will benefit agents, insurance companies, vendors and trade associations; in short, the entire community that supports the concept of choice and the independent insurance agency system.

Independent agents may continue to maintain commercial lines market share dominance, but the market is in for some substantial shrinkage, and this could last for several years. Shrinking receipts, payrolls and business assets are all going to negatively affect commercial premiums and commissions, at least until this worldwide economic mess manages to correct itself.

The potential for growth for agents and their companies lies in personal lines--where the market is huge but the independent agent sector only enjoys approximately 35 percent market share. That won't grow without drastic changes.

Thirty or more years ago, independent agents began demanding more efficiency within the personal lines universe, stating that inefficiency was the source of the high expense ratios that prevented independent agencies from successfully competing with direct and captive writers. The playing field has now been leveled, and it's time for our side of the industry to capitalize on our opportunity.

Today, using Web-based technology, clients can access their accounts as well as carrier and agency contacts. Information and marketing links can be provided to employer-based clients as a beginning and as a follow-up to initial sales efforts.

Major technological progress has already been made and has been a huge factor in allowing the independent agency system to achieve efficiencies that have effectively overcome price advantages that were previously held by direct writing and captive agency companies.

Read AA&B's Web exclusive "Get to know the duck" on Aflac's successful outreach to independent producers.

AA&B: What are the best ways for independent retail agents and brokers to compete with direct writers--especially when some of the best known personal lines companies use multiple distribution channels?

Brooks: Nothing is better for agency personal lines growth than the development of a large inventory of expiration dates provided by prospects in anticipation of an insurance proposal from an agency that actually has asked for their business. The challenge is the development of that inventory. Without expiration date timing, not much is going to happen.

Independent agents need to start asking for the business: "We have great, competitive home and auto insurance products, and we want your business! If you think you're paying too much for your home or auto insurance, call our agency and ask for one of our personal insurance specialists. He or she will match one of our several competitive insurance companies with your particular insurance needs and may well do so at a lower price than you're currently paying!"

This may be somewhat of a culture change for many agents, producers and CSRs, whose idea of "protecting the client" overrides "selling the policy." "Total Account Protection" is the agency standard that drives proactive communication with clients and prospects. Writing the total account has proven to increase revenue, lower loss ratios, increase retention ratios and reduce expenses.

AA&B: Are you targeting all personal lines coverages for growth? Which in particular, and why?

Brooks: Yes, we're targeting growth in all lines of coverage. And we're targeting customers, not policies. Obviously, auto insurance is the driver in increasing personal lines volume, and all the other coverages follow that: home, earthquake, flood, hurricane, floaters, etc.

AA&B: How does social networking and the Web play into the plan?

Brooks: We are putting out all of our information on Twitter. We also have Facebook and LinkedIn pages, where we're posting good, relevant information all the time.

AA&B: Will your membership encompass both agents and insurers? How many members do you have at launch, and what are your one-year growth goals?

Brooks: Within 24 hours of launch, we welcomed 63 members and the count continues to increase as awareness of the Alliance grows. We encourage agents, insurers and other industry-related organizations to be part of our membership, so the sharing of ideas and resources can be most effective. Insurance companies are already asking how they can help.

AA&B: What tools will PLGA offer members to compete in personal lines?

Brooks: Members will have access to relevant information, education and resources to take advantage of opportunities for profitable growth by combining the efforts of carriers, vendors, associations and agencies in one convenient place. They will be part of a network that will identify opportunities, share successful strategies and develop new programs--all designed to take advantage of the growth and profit potential in the personal lines marketplace.

PLGA members will get:

• Relevant personal lines news and publications
• Recommendations on specific actions to take to help you take advantage of market share left on the table
• Access to workshops and training programs to assist in developing your personal lines initiatives
• A network of like-minded and focused professionals to share and develop ideas
• A support group of member carriers, associations, organizations and vendors who share the same interest.

AA&B: Is there a fee or commission structure involved in membership?

Brooks: There is no cost associated with membership for independent agents -- all other interested parties are welcome to participate without fees until further notice. Our goal at this point is to gather the minds, engage in collaboration and demonstrate what success looks like: increased market share.

AA&B: What will be the main value delivered to members?

Brooks: Our goal is to convince independent agents of the value and stability of personal lines insurance products in today's insurance market, and how they contrast with the commercial lines activities on which most of them rely for their agency's main revenue stream. We will demonstrate the retention qualities of a properly maintained and serviced book of personal lines business, along with its potential of enhancing their agency's asset value. We'll also make independent agents aware of their competitive position, with a plurality of company representation, versus "the old days," when direct writers and captive agency companies dominated insurance price issues.

PLGA will also provide independent agents with knowledge of the available choice of personal lines sales and marketing strategies, strategies to enhance customer relations; how with the currently available workflow efficiencies, agencies can provide prospects and clients with "the human contact factor," an important element missing from the marketing and service strategies of many direct and captive agency writers.

We also plan to resurrect the entire insurance industry's interest in personal lines as a major source of financial growth and stability. Particularly, but constructively, challenge the current perception of many independent agency owners and senior managers.