IBA West Holds Annual Meeting and Installation

Rick Dinger (left photo), president of Crescenta Valley Insurance, brought in the New Year as president of the Insurance Brokers and Agents of the West (IBA West) at the association’s annual meeting at the Glendale Hilton last week.

“It is an honor to be nominated and elected to this position,” said Dinger. “I will do my best to represent the best interests of not only our association but the interests of businesses and individuals that buy insurance in California.”

“I’m grateful to Past Presidents, Paul Bystrowski and Scott Kerns, for mentoring me while I served on the Executive Committee,“ said Dinger. “I will take with me what I learned from them as I enter office and will be the custodian of their initiatives that will carry on during my term and beyond.”

In looking ahead, Dinger noted that last year was one of the most challenging economic periods in history and uncertainty permeates the economic forecast for 2009. He pledged to keep a keen eye on the association’s budget and cut any unnecessary expenditures.

“I want to thank you for your membership in IBA West. I can proudly tell that there isn’t a better run or more efficient association anywhere,” said Dinger. Dinger urged members to take advantage of the association’s wide range of insurance products, professional education programs and networking opportunities provided at IBA West events and conferences.

In addition, Dinger pressed members to continue their support of the IBA West’s legislative advocacy program with contributions of time and dollars.

“IBA West’s complete success in enacting AB 2956 into law last year was a shining example of the broker-agent unwavering commitment to political advocacy,” said Dinger.

In the coming year, Dinger plans to implement a new grassroots marketing program to promote brokers and agents through California called the Trusted Choice Insurance Advisor program in which members will be asked to send out press releases provided by IBA West on consumer and business insurance issues that underscore the value-added services of the Independent Agency System and the benefits of working through a Trusted Choice agent.

Also, local associations will be urged to join their local chambers and other business groups to promote the Independent Agency System.

Dinger also hopes to reinvigorate the IBA West partnership with local community colleges that have insurance programs to help grow the potential workforce of the Independent Agency System.

He called upon members to be ready to provide internships when approached by students working their way through the community college insurance program and urged local associations to become active. As part of that effort, next month IBA West will begin administering the Insurance Careers Program.

“What better way to meet the next star service person or salesperson for your agency,” asked Dinger.

Following his remarks, Dinger introduced luncheon keynote speaker George Joseph, CEO and founder of Mercury Insurance, considered one of the most innovative underwriters in the country and the largest insurer in the state working exclusively with independent agents.


George Joseph Says Independent Agents Will Always Have A Future

George Joseph (top right photo) started his presentation by recognizing Virgil Dinger, Rick Dinger’s father sitting in the audience. Joseph recalled that when he and Virgil began working together in 1972, Mercury was a very small company with about $20 million dollars in writings. But today, said Joseph, because of the efforts of independent agents, that number is equal to less than two days business at Mercury.

"Independent agents will always have a future," said Joseph. "Despite the millions of dollars spent on risk classification technology and innovations to improve underwriting, independent agency companies have a tool that their competitors don’t and cannot duplicate." Joseph added that it is important for independent agents to establish and maintain the relationship with the customer.

Joseph cited studies that illustrate how that relationship inspires loyalty to the insurer and the agent and is convinced that independent agents add a great deal of value to the personal lines products. He said studies show that consumers who shop do so in direct relationship to the amount of attention they received from their agent or company.

Commenting on the state of the industry, Joseph said there’s a great deal of concern about layoffs and job cutting in the news today and Mercury was no different. He said he was closely watching the investments of the company and even predicted that some companies would continue to report poor results. Nonetheless, Joseph was optimistic that prices had bottomed out and that insurers will recover by the end of the year.

“This is my 60th year in the business,” said Joseph “so I’ve been through cycles. As an agent, I remember when I would go through cycles, if my phone wasn’t ringing, I’d be out of the office.” He told the audience of how years ago he would park his car and cover an entire city block gathering new clients.

Convinced it still works that way, Joseph said, “there are still a lot of people who say their only contact is a email or a piece of paper. Your customers want to talk with you. Take that time to make that contact and I guarantee whatever percentage of business you are losing you could cut it in half.” Joseph stressed the importance of working a little harder than your competitor to maintain client relationships.

“If you can show an interest in your client, spend a little more time, we’ll do our part,” said Joseph. “We will build facilities for consumers to get more information from their computers. My goal is for consumers to see their car in the garage being repaired!”

Also participating in the luncheon were Dinger’s friends and colleagues John Drayman, Mayor of Glendale who welcomed everyone and Dario Frommer, former Majority Leader of the Assembly. Dinger's 8-year-old son, Hayden, sung the National Anthem to open the ceremonies.

EDITOR'S NOTE: See tomorrow's Daily Insurer for a write up and photos of the new officers.