Since that post, much of the East Coast has suffered significant flooding from both Irene and Tropical Storm Lee—and the companies mentioned in my earlier post along with many other firms continued to make effective use of social networking to stay in touch with their customers.

They used everything from e-newsletter and blogs to Twitter and YouTube to post information on how to contact carriers, storm updates, emergency shelters locations, road closings, office hours, FEMA info, tips on cleaning, preparing a disaster supply kit, storm surge maps, “thank you’s” to emergency responders, photos of local flooding, and insurance policy coverage information.

Carol Reese, CIC, CRM, from the Henry D. Young Insurance Agency, sums up much of the rational behind the use of social networking under this type of circumstance: “I feel that social media is a great way to get information out to many people immediately to help them deal with disasters and their aftermath. It also shows the community that we care about what may be happening to them and are here to help them get through the claim process and disaster recovery.”

Yes, these firms provided a valuable service to their customers. Yet, I think we can—really, must—do more. I would like to see our industry develop a single resource, or clearinghouse of up-to-date information, as well as, a comprehensive industry-wide social media response plan.

In the recent East Coast disasters, most agents had to come up with their own content and find relevant resources. Without sacrificing the significance of local community information, I think there would be great value in our industry creating a single and centralized repository of information. Not only would this give agents access to event relevant content but populate the social space with a strong unified and consistent message. For example, if IIABA or a carrier created a video about disaster planning, agents across the country could access, share, and link to that resource.

The communication plan would be designed to enable our industry to deliver a cohesive message and leverage the local presence of the 25,000 independent agents. Thus, the plan would define and model the process of moving a timely communication from the national association level to a local agency.

In my opinion, creating a single resource and communication plan would allow us to take control of our message and offset the typical popular media stories about increased premiums and uncovered losses. Implementation of this model would give us the means to demonstrate the value of the Independent Agency System. What do you think?

Often, I hear agents who are not yet actively participating in social networking question its value and/or its return on investment (ROI).Clearly, the use of social networking by our industry during the past couple of weeks has demonstrated that “social” is not just about ROI. During the earthquake and now the hurricane many East Coast agents, carriers and associations effectively used social networking to connect with their followers and communicate valuable information.  Some examples include:

• New York agent, Ryan Hanley who created a video blog offering, “6 Hurricane Preparedness Tips for Homeowners”
• Connecticut agency The Founders Group blog posting, “Hurricane Irene is on her way – Tips for protecting your home!”
• Many Facebook posts and status updates by Connecticut agent V.F. McNeil Insurance including links to the town’s emergency preparation and a request by the governor to sign up for CT Alert Emergency Notification.

Other examples of agents effectively using Facebook include:

• New York agent R.J. O’Brien Insurance
• New Jersey agent Henry D. Young
• Pennsylvania agent William B. Parry & Son

Several carriers including Travelers and Harleysville also did a great job posting storm-related risk management information on their websites and Facebook pages. Marsh USA, @Marsh_inc did a particularly nice job using Twitter. IIABA, New Jersey, Virginia, North Carolina and IIABNY all used social networking to communicate relevant information.

I also found our industry actively involved in Twitter conversations and followed them using the hashtags #irene, #hurricaneirene and #insurance.

Our industry shines in times like this. In contrast to popular media stories about increased premiums and uncovered losses, this is our chance to demonstrate the value of the Independent Agency System. I congratulate all of you who worked to make sure your customers had access to the information they needed to properly prepare and recover from Irene.

(The agencies, carriers, and associations listed above are only a small sampling of the many who took advantage of social networking during Irene. Please let us know how you used the social space to communicate and stay connected during this disaster.)

To help drive home the importance of innovation, she quoted Henry Ford as saying, “If he’d asked the American people what they really wanted, they’d have said faster horses.”

I have been thinking a lot about it lately because I think our industry has a tough time making the distinction—let alone acting—on situations when innovation rather than improvement is needed. Sometimes, improvement simply is not good enough. We fail if we apply new technology to old processes. New technologies give us the chance to innovate and create new processes.

All the “social” technologies provide opportunity to reinvent the way we communicate, market, sell and service to the insurance consumer. More significant is the impact technologies such as mobile and cloud computing could have on many of our industry’s outdated processes. For example, rather than just improve certificate of insurance processing why not rethink, reinvent and create an entirely new and different way to access and validate the existence of coverage? Could we invent a new and better way to confirm identity and insured acceptance or approval and eliminate the need for signatures altogether? I get that there are legislative and regulatory constraints but I don’t think that is an excuse for our failure to improve and progress.

You get the idea. Given the technology available to us today, what process do you think would be better served by innovation vs. improvement?

Today more than ever brand is being defined by consumers and what they think is more important or has more influence than your brand messaging. Interestingly enough, even if you are not engaged in social networking it is having an impact on your brand. In fact, not engaging in social networking may be doing great harm to your brand.

When you search for a business on Google are you more likely to click on and follow-up if the business has a website link? What impression are you leaving with potential customers if they can’t find you on Linkedin or if your profile is poorly done and incomplete? If Facebook and other social sites have replaced the yellow pages, what damage to your brand is taking place if you can’t be found? How do you think consumers feel about an inactive Twitter account or a Facebook page that has not been updated for several months?

Social networking is not a project. Rather, it is about being a social business and has a great deal to say about who you are and what you do.

Are you using the new tools of social networking to help position your brand in a positive way?

According to the Small Business Administration, “Small businesses represent 99.7 percent of all firms, they create more than half of the private nonfarm gross domestic product, and they create 60 to 80 percent of the net new jobs.”

It wasn’t that long ago that the Internet was expected to be the great equalizer. That is, the Internet would provide independent agents with the ability to expand their reach and the give them the tools necessary to compete with the big boys.

As it turned out large well-funded direct writers applied slick technology and even slicker ad campaigns to buy attention and garner consumer trust. The end result was that most online sales went to a relatively small number of sites controlled by large insurance companies. Small business was simply out spent and outgunned by big business.

Social media in now being hailed as the technology that has leveled the playing field. Has it?

A couple of weeks ago I received this tweet from @carrie_AGIns, “@rickjmiv have you written a post or done a podcast addressing how insurance agents can compete w/ the big boys?”  Carrie then followed up with, “@rickjmiv I would be very interested to see your take. We insurance agents don’t have the funds to do everything. But SoMe is supposed to level the playing field.”

Before answering, I wanted to know what others thought and posed the following using Facebook Questions: “If you are a small to mid-sized agency how has social media helped you compete with the larger firms or even the large direct writers? Has it leveled the playing field?”

Many think it has. In answering the question some of you indicated that it had dramatically helped increase agency brand awareness. Others indicated that social media enabled them communicate and connect quickly with current clients.

One agent commented: “Yes I believe that it has and will continue to allow us to compete. It is all about “connections” or relationships. I would go even further though and state that the whole of technology is more important to us. When a little agent like ourselves can have all calls after hours routed immediately to our cell phone, now that is service 24/7. When I can use Google Voice to text message a client instantly and get business done “in their hand”, it blows them away. So these tools allow us to provide exceptional service and the social media allows us to keep our name in front of people at a fraction of the cost of traditional advertising.”

Another agent replied, “Yes, we can target market to our neighborhoods on a pay per click basis. We can get in front of more of the right people and get our message out.”

I believe that social media has created a new level playing field that appeals to a customer that values having a local trusted relationship. But the expectations being placed on business are also adding a new level of reasonability and how they respond may greatly influence their success.

So, unlike the Internet, why is social media working as an equalizer? What is different? Help me out here…Let’s continue the discussion. What do you think? As a small business with limited resources what challenges do you face in creating an effective social media strategy?

Clearly the tools of the social Web work well with individual consumers. But they also can work and they are relevant to communicating with, marketing to, or servicing business clients.

The all-too-common excuse (‘what works in personal lines won’t work in commercial lines’) is an argument that is not only wrong–but it’s an excuse that is denying many companies the opportunity to reap the benefits of the social Web.

The truth of the matter is that whether creating a relationship with a personal lines or commercial lines customer you are doing so with individuals. All consumers want to “feel” that they know their business partners and want a relationship built on trust. Social media allows you to humanize and personalize your corporate brand.

Don’t take my word for it. Here are examples of insurance agents and brokers that are making effective use of social media with business customers:

Founders Insurance Group, Inc.
Parker Smith & Feek
American Collectors Insurance
Holmes Murphy
Clinard Insurance
Noyes Hall & Allen Insurance

As you check out their blogs, videos, Linkedin accounts, Facebook Fan pages and Twitter streams, you’ll see a variety of approaches:

– Some of these organizations are using blogs to position themselves as subject matter experts and become curators of insurance relevant content.

– Some use video to amplify their message and strengthen their brand. For example, Holmes Murphy has used video to record customer testimonials from commercial clients.

– Some have tapped Facebook and Twitter to provide new opportunities to introduce themselves to prospects and clients.

In addition, these tools enable these companies to build awareness, stay relevant, generate curiosity, engage in the dialogue, and invite participation in the conversation.

Social networking is not new. Rather, it represents a new way to interact with customers. Smart agents and brokers will increasingly assimilate and fold social media into their overall business strategy.

What is your experience in using “social” in the business space?

They are using technology and social media to build relationships and communicate subject matter expertise, differentiate their brand and grow their business. Collectively this group has built virtual offices and produced informative, creative and occasionally outrageous videos. They have been industry leaders when it comes to blogging and effective use of Twitter, Facebook,  Linkedin and YouTube. While protecting client’s assets is serious business for these agents insurance is also fun.
Yet, it is not all about the technology. This group represents an influx of young agents entering our industry who reject the argument that personal lines is a commodity and the need to sell price. Rather, they sell the value of having a trusted relationship with an agent, choice, a local presence, and providing insurance expertise and knowledge. Yes, they are “digital natives” but they also fully appreciate the value of “off line” and “in person”.

The example being set by these agents speaks to what I think is a wonderful opportunity to attract new young talent. They are demonstrating that insurance can be interesting and exciting – and they are doing it their way.

Are our traditionally conservative insurance organizations prepared to embrace this new generation of insurance agent? For example, are carriers willing to offer contracts to young independent agents and rethink their volume requirements?

Peter van Aartrijk and the late Akio Takahashi at a Big 'I' Japan convention in Tokyo.

This is a blog entry I should have written more than a year ago. Perhaps I’ve been in denial about losing such a good friend.

The photo here is me with the late Akio Takahashi. In the last several years, I’ve had the honor of talking about the U.S. Independent Agency System at seminars coordinated by the Independent Insurance Agents & Brokers of Japan. This was taken at IIABJ’s second annual convention in Tokyo, held June 2008 in a conference room of Kyoei Fire & Marine Insurance Co.

Takahashi was IIABJ’s first president. He was a loving husband, father and grandfather. He chaired a strong, multi-faceted brokerage, World Service Corp., based in Osaka. In all of these capacities, he was a true leader.

Takahashi died on April 5, 2009. I received the following note from his staff, which said in part: “Mr. Takahashi visited Europe and Asia in February and March, and he was looking forward to attend the IIABA meeting in U.S.A. this month. His sudden departure saddens us greatly, but we will continue to uphold his dream of changing the Japanese insurance business. We thank you for your friendship during his lifetime, and look forward to your continued friendship to his family and World Insurance Group.” It really was about those friendships and “dreaming,” as the note says.

Takahashi was proud of the accomplishments of the association he helped found in April 2005.

For instance, a contingent of IIABJ members has come over to the U.S. for IIABA conferences each year, tying in field trips to independent agencies each time. I’ve been on some of those field trips. Watching the faces of the IIABJ members during those meetings is fascinating. They drink in the information they hear from agency principals: how to compensate producers, how to market commercial lines, how the agency management system works, etc. Why? Because the Japanese Independent Agency System is 30 years behind the U.S., as Takahashi would say. (And believe me, the guy knew his stuff; he was constantly in the U.S. working on multinational accounts.) In Japan, a select few huge carriers—with the support of an active (some say overbearing) government regulator—dominate the business of literally hundreds of thousands of mom-and-pop agencies, most of which lack leverage or technology to manage multiple customer and carrier relationships.

Takahashi aimed to change all of that—he dreamed about a more competitive, vibrant personal and commercial lines marketplace for IIABJ members.

And he knew, too, that the Japanese business climate evolves slowly—very slowly. But I think he rests knowing that the proper path has been set, and his association is leading.

IIABJ honors the memory of Takahashi as it continues to pursue that improved insurance climate in Japan. It’s a tall order, sure. But I can see that proud, confident grin of Takahashi as he said repeatedly to his fellow Japanese agents, “We must do it.”

What a lesson for those involved with member organizations. In order to truly make a business difference for their constituents, trade associations require strong, confident, strategic, can-do leadership—not just staffers or volunteers counting beans (or deck chairs on the Titanic). Someone, or a select few, must step up and lead. Takahashi indeed was that leader.

And if you’re a member of an association, perhaps its time to think about leadership—your leadership. What are you concerned about? What can you give back to your industry? How will your fellow members perpetuate their businesses?

Time to step up?

Just showing up on social networking sites does not lead to social networking success. Rather, success comes from a commitment to delivering outstanding service, being a good communicator, implementing smart marketing initiatives, and being comfortable being transparent and authentic.

Note: What I’ve said above isn’t new for independent insurance agents and other insurance brands. Those points have long applied in our business. What is new is that you, as an insurance marketer, now have a whole new set of powerful tools to help you build relationships and grow your business.

The agencies below understand the difference between just using these tools and incorporating them in the the agency culture. They are making the transformation to become “social businesses.”

McClain Insurance Services
Atlanta Insurance Live
Parker Smith Feek

How are you transforming your business?

Pat Alexander, founder of InsuranceEcosystem.com

The Aartrijk team is pleased to welcome — for the first time — guest bloggers from in and around the insurance industry, starting this month.

To kick off this occasional series, we welcome Pat Alexander, founder of industry blog InsuranceEcosystem.com and a Brand Camp 2009 alumna.

About Pat: In 2009, she launched InsuranceEcosystem.com as a resource for the insurance industry and a way to spark more conversation about her areas of expertise in independent agencies, coaching and technology. She describes Insurance Ecosystem as a blog that “provide[s] you with communicators that don’t normally blog but have great views and information to share. Each of these individuals … [has] so much to contribute in their area of expertise.”

1. What has happened in the past year with your firm now in the area of branding? What changes or initiatives have you been working on?

After Aartrijk Brand Camp 2009, I developed a plan to redesign my primary Web site, PatAlexander.com, and give it a fresh look and to develop a blog where individuals of interest to insurance agents could blog regularly or at their whim. Developing this blog included developing a brand for it as well as an audience.

Often watching and listening is a great way to learn how the various social networking tools can work for you. I also follow a number of non-insurance industry social networking “gurus.” One of my favorite is Amber Naslund of Brass Tack Thinking. Amber is director of community for Radian6. Smart young lady providing great thoughts and tools.

4. Now a word from our sponsor. Tell us one thing that you learned at Aartrijk Brand Camp 2009, and how you have implemented it or changed your branding since then.

At Brand Camp 2009, I learned so much about the importance of brand. I have always told agencies that I work with it is important that everyone in the agency delivers the same message about the agency.

I now believe that the brand and message are inseparable. I developed a presentation, specific to insurance agents, on the importance of brand and social media. From this presentation, I have gained a couple of clients, and I am assisting them in developing and implementing their social media plan.

The focus is on providing their clients and prospects with useful and informative information. We develop what they want their brand and message to be — and carry that through the tools that they choose to use.

Pat Alexander’s Web site also has a great resource: a list of industry blogs and other relevant blogs. Follow Pat on Twitter.