Mutuals have to show that they are committed to the marketplace, which he believes is not a bad thing because it means companies are is working with agents who value their relationship with their clients.

He says what is most important is being able to deliver on “two touch points with the consumer.”

“We have to figure out how to add value to the relationship and to add value at the point of automation,” Kennedy says.

The challenge is to provide seamless service for the consumer to access his or her account at any time “while not looking like you are losing the [relationship with the] agent.”

He said accomplishing that goal would go far in differentiating one company from other carriers.

Sandra Parrillo, president and CEO of The Providence Mutual Fired Insurance Co., and outgoing chairman of NAMIC, says the real competition for independent agents is the personal lines side of the business, because of the direct writers. While the demise of independent agents has been predicted for years, she believes that they have proven they can survive and flourish despite the competition.

For mutual insurers, the major issue is branding, she went on to say, noting that “it is a big challenge to get out” the message.

That message, says Chuck Chamness, president and CEO of NAMIC, is that mutual insurers take the long-term view that benefits the policyholder instead of focusing on increasing shareholder value as publicly held companies do.

On the branding issue, Chamness says NAMIC will use a combination of working with other mutuals marketing to get the word out about the value of mutual insurers to consumers, while also turning to social media and limited advertising.

Ross Buchmueller, president and CEO of PURE (Privilege Underwriters Reciprocal Exchange) says that the advantage for mutuals is obvious for independent agents because they are placing their clients with an insurer that has the policyholder's best interest in mind.

He says one practice that mutuals should adopt is sending reports to policyholders on the company's business that outlines its financials and underscores the difference between it and publicly traded carriers.