IIAA Objects To The Hartford-Ford Deal
IIAA is taking a strong stand against the major new direct-marketing program that The Hartford has set up with Ford Motor Co. The new program, which competes directly with the company's 4,300 independent agents, will sell auto and other lines of insurance directly to 17 million Ford, Lincoln and Mercury owners and lessees, as well as customers of Ford Credit.  "We are greatly disappointed that The Hartford would set up yet another major program that passes-and-competes with its independent agents.  The Hartford has an excellent independent agency force, which could have added so much value to this program" said IIAA President Bill Greenwood in response to the announcement.  "Direct marketing deals such as the Hartford-Ford one should serve as a call to action to independent agents everywhere to become more aggressive and pro-active in personal lines to provide consumers with a better solution and beat this competition."

Alabama Dept of Insurance Now To Monitor Bank Insurance Sales
Alabama is one of the seven states that recently signed new agreements with Federal bank regulators to share information about customer complaints related to insurance sales by banks. This action bring the number of states with such agreements to 16 with more expected in the near future.  Under the new agreement, any complaints received regarding insurance sales by a bank will be shared between the state insurance regulators and the Comptroller's office which oversees nationally chartered banks. 

IIAA Convention Goes Live On The Web
Agents and other industry professionals who can't make it to Las Vegas for the IIAA's 104th Annual Convention September 27 - October 1 at Caesars Palace can enjoy a virtual visit to the event through the Big I Web site at www.independentagent.com.  The site will provide live video and audio coverage of the conference and will cover nearly all convention events including high-level speakers, the presidential inauguration, and each general session.  The WebCast also enables interested participants to "attend" the opening and closing night parties, roam the Exhibit Hall with the roving Web Cam and chat with attendees.  The Web broadcast goes live beginning at 1 p.m. est on Sept. 27 and continues through the conference.  RealPlayer is required to access the live broadcasts and is available as a free download via www.real.com or the Web Broadcast area of IIAA's Convention site.  There is still time, however, to register for the convention and earn up to 15 hours of CE credit from among the approximately 40 hours of innovative continuing education credit available at the convention, in addition to the variety of Best Practices and technical training seminars. Register on-line www.independentagent.com and receive a five-percent discount on the registration fee.  For more information, call (800) 221-7917.

Readers Digest To Help Market Torchmark 
The most widely read magazine in the world, Readers Digest, just agreed to put its direct marketing and brand name strength to work to help market life and health insurance for Torchmark Corp.  The company has agreed to use its database of 50 million names and addresses in the United States alone in the marketing efforts and will use advertising in its magazine and on its numerous Web properties which presently include an interest in the online health site, WebMD Inc.  In a separate deal, they agreed to do the same for New York City based American International Group, Inc. (AIG) to help in marketing in 26 areas outside the U.S. and Canada.

PIA To Move Into NALU Building
PIA National's Executive Committee has agreed to move into NALU's new building which will be located in Merrifield, VA.  The relocation should be complete by May 2000.  Meanwhile, NALU is expected to approve its new name at its annual meeting this month.  The new name will be the National Association of Insurance and Financial Advisors.  PIA's move was necessary due to the fact that they sold their National headquarters in VA.  PIA National continues to suffer financial setbacks after losing their Utica E & O program.

New York Agents Association Forms Captive In Bermuda
In a unique move for a state insurance agent group, the IIAANY has formed its own captive for agents who want to share in their clients' risk.  "This is really an opportunity for our members to control their destiny," said Paul W. Babitt, IIAANY President.  Called NYIA Re, the captive is owned by Leading Edge Holdings, a holding company that the association set up in Bermuda.  That company also holds a Syracuse-based marketing company, IA Re, which will handle the onshore marketing operations of the captive.  The agents will be able to participate by acting as an investor, by participating in the risk-sharing arrangements by placing books of business through the captive, or by simply taking advantage of any products that the captive offers.  Leading Edge will unbundle its insurance products and services allowing the captive to create competitive products.  The captive has shown IIAA its business plan with the suggestion that there could be some ways for them to become involved in the future.  However, the option to participate is currently only open to IIAANY members. 

Hurricane Floyd Tested U.S. Insurers Strategies
Stunned by Hurricane Andrew's fury, insurers have scaled back their operations in the hurricane-prone Southeast and have loaded up on reinsurance designed to give them extra cash in the event of another huge catastrophe.  With damage estimates not yet in Hurricane Floyd, one of the strongest storms ever tracked in the Atlantic, is the first major test of these post-Andrew strategies. With Hurricane Gert waiting in the wings, the industry could face a damaging one-two punch. The largest companies in Floyd's line of fire include State Farm, Allstate, Nationwide and USAA, which cover almost half the insured property in the areas most likely to be hit. 

More Agents Accessing the Internet
A recent survey reveals that more and more agents feel that Single Entry Multiple-Company Interface (SEMCI) is very important for enhancing agency/carrier communication, and the majority of those surveyed say they provide Internet access to their employees.  The Internet is simply a way to drive down the costs of placing and processing insurance and an efficient way for agents to communicate with insurance companies.  The survey shows there is a lot of demand from consumers for online insurance products and services and the survey shows that agents and carriers are starting to respond to that.

Upcoming Educational Opportunities
The last CISR course that will be offered this year is the Commercial Property Course which will be offered in several locations across the state during October. Don't miss these final opportunities - Sign up today, class space is limited.  Also upcoming is the Property and Casualty pre-licensing school which will be offered in Mobile, Birmingham, Montgomery and Tuscaloosa.  Keep in mind that you can register online for education classes at www.aiia.org.  For additional information, call Lauren Mashburn at AIIA (205)326-4129.

VESTA CEO To Speak At Birmingham Agents Conference
Norman Gayle, CEO & President of VESTA will be the keynote speaker at the Birmingham Independent Insurance Agents Conference luncheon to be held Tuesday, October 26, at The Club.  Tickets will go on sale the first of October.  For more information, call Cynthia Moss or Laura Barnett at AIIA 205-326-4129.

Agency Acquisition & Mergers Buck Trend
While insurance mergers and acquisitions fell overall during the first half of 1999, distribution was only one of the only two sectors of M&A activity that saw increases.  In a recently released study, distribution was the only sector that saw an increase in the number of transactions - up 27%- as companies focus on broadening their channels of distribution.  About half of this activity was from agencies buying other agencies; banks buying agencies accounted for 16 %.  Meanwhile, M&A transaction value overall declined 71% and the number of transactions decreased 9% compared to the first six months of 1998.