IBABC 99 AGM AND CONFERENCE: Regional Unity the Cornerstone

Promoting regional unity and getting out on the road to read member needs and concerns first hand are central issues of the Insurance Brokers Association of British Columbia’s strategic growth plan for the year ahead. Although brokers should remain competitive within their ranks, the time has come for the province’s brokerage community to stand together as an effective force as the battle for marketshare with direct writers heats up.

Driving home the value of provincial unity through membership to IBABC is key to the future success and prosperity of the brokerage community in B.C., says Ralph Libby the president of the association for the 1999/2000 term.

Last year IBABC introduced its strategic growth plan concentrating on streamlining the association’s efficiencies and strengthening its representation of members. A great deal was achieved over the past 12 months, notes Libby, “I’m fortunate in not having to face crisis management issues during my term as president which will allow me to concentrate on positive building programs”.

This year the association’s strategic plan objectives include balancing the budget through cutting expenses as well as building revenue through new membership, final settlement of the ICBC Accord (established last year between the Insurance Corporation of British Columbia (ICBC) and brokers, making the latter the sole distribution means for the corporation’s auto cover), and maintaining a higher profile within member frontline ranks. “We have to get out to our members, it’s vital that the association has a presence in the field to gather direction,” Libby adds.

Furthermore, as far as the unity issue goes, “this is something that extends on all fronts, from membership, ongoing education through to the use of the bipper as a national symbol of broker independence and value,” Libby clarifies. Although brokers are competitors, greater attention has to be drawn to the value of standing together as a single force against the invasion of direct writers. “Brokers may be competitors, but they are also allies in the bigger picture.”

Electronic revolution

The Internet will play an increasing role in IBABC’s ability to serve its members, Libby says. The association will be launching an interactive worldwide web site shortly which will play a significant role for the community in terms of communication and delivery on the education front. Although the Internet site will be not be used initially as an “interactive education tool”, this possibility does exist down the line, says Libby. “It [the Internet] may not be the most important [educational] tool today, but it sure will be one day.”

Past president Michael Megson reiterates the future importance the Internet will play in customer interaction. “Stay involved with E-commerce, I’m not saying it’s going to be the only way of [insurance] distribution in the future, but it is going to be there,” he told members in his AGM report. IBABC’s web site will benefit its members in a multitude of ways, he adds, “the scope of the web site will be far reaching and it should prove to be a real asset to our association and its membership”.

Chuck Byrne, the association’s executive director, points out, “I can’t say what E-commerce will mean, but there will be a substantial number of consumers looking to do business this way. If direct writers have a web presence, then we have to be there.” The potential benefit available to brokers through the Internet is twofold, he comments, “it’s not just E-commerce, but an opportunity for us to enhance our presence”.

The Internet is not the only electronic investment IBABC made over the past year, Byrne notes, with the association having invested in video conferencing equipment for educational purposes. “We continue to perfect its use and believe, through the broadcast of seminars and enhanced cost-effective communication, the association and its members will reap the rewards.” Commenting on the association’s new web site, he adds, “the ability for members and their staff to access IBABC information on a 24-hour basis in the short-term opens up countless opportunities. Service to the insuring public and industry will likewise increase dramatically.”

The bipper and broker presence

Emphasizing the importance of using the bipper in advertising materials and promotional events, Libby says bipper use will also be high on IBABC’s agenda this year. “B.C.’s brokers haven’t used the bipper as strongly as they could have, largely because of the ICBC situation. But we can no longer afford to be complacent [regarding the advancement of direct writers in the province].”

Last year IBABC acted as co-sponsors of several community events, namely a wine tasting festival through which members provided a “free ride” service to attendees, which Libby believes provide an ideal forum for promoting public awareness of independent brokers. Such events are also ideal for promoting the bipper and broker branding, he adds. As such, the association will look at sponsoring similar community events this year.

Byrne concurs that bipper use by B.C. brokers has been poor. “[Bipper] usage and visibility at member offices remains at a dismal 30%. The use of the bip is not the only answer [to public awareness], but it is a big part of branding, and building awareness for our way of doing business.”

Mel McMillan, chairman of the association and its bip committee last year, refers to a market survey carried out by IBABC in 1998 showing the bipper to be more effective with consumers than the marketing efforts of direct writers. McMillan strongly supports the use of the bipper on a broad-scale approach of advertising as well as utilization in sponsored events and consumer educational programs. An educational handbook, titled “Be Safe”, soon to be released by the province’s Attorney General’s Office, was part sponsored by IBABC through which the bipper is prominently featured, he notes. This follows on from several previous educational media projects, primarily on the television front, through which the association gained a high profile of the bipper. McMillan says the association is currently working to tie the bipper into B.C.’s “Road Sense” program which is sponsored by several community pillars, including ICBC. “It is extremely important that brokers are seen to be driving it [the program],” he adds.