Pet peeves

I seldom respond to articles, but Matthew Marrone's article, “When client dissatisfaction moves to E&O claims” (AA&B 10/09) addresses one of my pet peeves as an agent. In a perfect world, we could report all potential incidents that would result in a claim; but because of the subjective nature in the rating on professional policies, it is impossible not to consider future cost ramifications. I believe on occasion every agent tells a client something is not covered when in many cases coverage was available at some level and at some price. My clients who purchase this coverage are at risk on these claims made policies. It's about time that the trigger of coverage be made much more specific, i.e., any written demand for coverage so both agents and clients can feel more confident in their policies that they pay thousands of dollar for each year.

David W. Riley, AAI, CIC
John Andrade Insurance Agency Inc.
Warren, R.I.

Cash flow frustration

I want to thank Chris Burand for his excellent explanation in his article, “Cash flow underwriting frustrates agents” (AA&B 11/09). Unfortunately, this rather simple concept of profitability isn't being taught in any business- or insurance-related environments that I'm aware of.

Dan Connor
Connor Insurance
Broomall, Pa.

Christmas present

Chris Amhrein, what a masterfully penned parable, my friend (“Ditch Christmas past with a better present,” AA&B 12/09). At 52, I'm trying to stay young in mind and attitude by learning as much as I can from my 14-year-old and 20-year-old about why they do what they do, and how they do it (and how they don't do it). It's challenging keeping up! But hey, I did get my iPod working and learned how to turn on the family Wii over holiday vacation! It's a process, not a project.

William J. Alexander, AAM, AIT
OneBeacon Insurance Group
Canton, Mass.

Get over your fears

Just wanted to let you know how much I enjoyed the article “Social networking: Same old story?” (AA&B 12/09) by Rick Gilman. Its message should really help independent agents get over their fear of new technology! Kudos to your staff!

Courtney R. Holder
Combined Agents of America
Austin, Texas

Investigating BI

Jerry Trupin and Arthur Flitner are to be commended on their article, “Magnum BI: Calculating maximum business interruption loss exposure” (AA&B 01/10). You have taken a difficult topic and explained it well enough that the average CFOs of mid-sized firms ($10 million in annual sales) should be able to comprehend and use to their advantage with professional assistance. I am sure we both have experienced losses and successes with customers who listened to our suggestions prior to a major loss. Personally, I have had several chemical manufacturers survive a major loss because the BI coverage was correctly structured. I also lost a few that would have been “mega manufacturers” had they thought through the reasoning behind my presentation of business interruption as survival of the firm insurance.

Joel H. Monsma, CPCU ARM
Adcahb Life Group
Jupiter, Fla.

Jerome, I very much enjoyed your article on business income. I am a newer producer and wanted your opinion on the best resource (class/curriculum/training) to become more versed with writing BI. Can you please share your thoughts or direct me in the best direction?

Brian W. Eanes
Anderson Insurance Assocs.
Charleston, S.C.

Author's response: I recommend that you consider either the AAI or CPCU programs, depending on your level of experience. I think that would give you a good all-around foundation in property-casualty insurance.

Mentor Gen Y

With 6 steps, including 26 substeps, for agencies to take to meet the needs of Gen Y, it's hard to know where to start (“Recruiting Generation Y,” by Andrew Liakopolous, AA&B 01/10). There's a strategic reason to begin with mentoring–pairing a Gen Y recruit with a seasoned producer. In our work with agencies, we've come to appreciate the dual power of such arrangements: They help Gen Y hone their business acumen while re-engaging senior producers who may have become a bit complacent. Good for producers, great for agency.

Demmie Hicks
DBH Consulting
Atlanta