 |
Receive alerts when new articles are uploaded by subscribing to our
e-notification service. |
|
Home |
Insurance |
Mitigation |
All Audiences |
Events |
Publications |
Websites |
Search |
About Us
|
|
Agency of the Year Award Winners
Insurance agents and the agencies they work in are essential parts of the NFIP. FEMA relies on the hard work, creativity, and initiative of thousands of insurance professionals to promote the coverage that will help property owners begin the process of recovery if they become flood victims. Every year, FEMA honors three insurance agencies at the National Flood Conference for the work they've undertaken on behalf of the NFIP. Agencies are nominated for this honor on the basis of their flood portfolio growth during the previous year, the marketing strategies they've used to increase flood insurance policy sales and retention, activities they've undertaken to promote flood awareness, and their adherence to NFIP underwriting guidelines. It is difficult to select just three winners from each year's field of nominees. However, this year, according to one member of the selection committee, the process was even more difficult than usual. Although nominees always demonstrate success in marketing flood insurance and in adhering to NFIP underwriting requirements, this year every agency nominated for the Agency of the Year Award also employed flood education strategies for communicating risk to their communities. Public education is essential for informing consumers about the danger of flooding they face in their communities. If NFIP stakeholders use their credibility within their communities to communicate consistent messages about flood risk and protection, more and more Americans will take steps to protect themselves, their families, and their property. Everyone becomes a winner. Armed Forces Insurance Armed Forces Insurance (AFI) of Leavenworth, Kansas, had 6,370 NFIP policies in force by the end of 2006. The agency wrote 1,420 new policies that year, representing a 66-percent increase over 2005. Of these new policies, 249 were Standard Flood Insurance Policies and 1,171 were Preferred Risk Policies. There are four people at AFI who sell and service flood policies in addition to their other duties. Consumer education of flood risk is a top priority at AFI, and the agency uses several strategies to reach out into the community with its flood risk message. A flood advertisement is posted on the home page of the AFI website, and flood insurance advertisements are also placed on other websites to target the agency's primary audience of armed forces personnel and their families. Flood information also is provided through the agency's semiannual newsletters to its entire client base. All of AFI's new residential (Homeowners, Dwelling, Fire) policies that do not have flood coverage receive a "Notice, This Policy Does Not Cover Flood Loss" sticker before they are mailed. AFI routinely runs flood zone determinations on the residential properties of customers who do not have NFIP coverage. Agents then follow up by contacting these property owners to offer flood insurance policies. Because AFI markets flood insurance to all parts of the United States, the agency creates marketing mailings customized to weather conditions specific to the area targeted. For example, AFI mailings are tailored to weather-related events such as flooding from snowmelt in the north or from hurricanes along the coasts. In 2006, AFI conducted a national flood education mailing to the agency's residential policyholders who were not yet carrying flood coverage. Using a large postcard designed with FloodSmart marketing suggestions, the mailing solicited telephone responses to a dedicated phone line and web responses to an address where requests for flood policy quotes received a 24-hour turnaround time. This mailing produced the highest sales in more than 30 years of AFI's flood insurance sales history. All policyholders are encouraged to purchase contents coverage as well as building coverage. When there is an increase in a client's homeowners coverage, AFI encourages a review of the flood coverage to be sure that it is still adequate. AFI provides quotes on additional coverage for policyholders who are underinsured and offers excess flood coverage to customers whose homes are valued higher than the maximum flood coverage limits. In addition to new policy sales, AFI has actively worked to retain its flood customers. When a policy expiration date arrives without the premium being paid, AFI flood agents use every contact method available to encourage the policyholder to renew coverage. The agency's retention rate is 89 percent. NFIP marketing and sales goals are set at the beginning of each year and individual agents each have production performance standards. AFI sends its agents to flood workshops at least every 2 years to keep them up to date with changes occurring in the NFIP. AFI agents make extra efforts to stay informed about the NFIP's lender requirements so they can guide customers in selecting the coverage and deductibles that will satisfy their lenders' requirements. The Celedinas Agency For the second time, the Celedinas Agency of Palm Beach Gardens, Florida, was the winner of the NFIP's Agency of the Year Award. Their first award was won in 2003. This agency achieved a 9.6-percent increase in new flood policies in 2006, closing the year with 5,611 flood policies in force. Of these, 1,122 were new NFIP policies. Approximately 63 producers (90 percent of the agency's staff) contribute to the sales of flood insurance policies at three offices in the Miami area. This large group of producers makes sure that every policyholder is aware of the importance of flood coverage during any homeowner insurance transaction. In fact, it is an agency policy to discuss flood insurance with every potential client and to use a flood waiver form to ensure that flood coverage is offered and that the signers understand that a separate policy from the homeowners is required to cover losses due to flooding. The Celedinas Agency uses a broad range of marketing strategies to increase flood insurance sales. Although the NFIP "Notice" stickers are used on envelopes distributed in mailings to clients who do not have flood coverage, the Celedinas Agency also created their own envelope stickers that provide NFIP rates. NFIP brochures are displayed in the customer information area of each of the agency's offices. Agency sales staff see to it that each customer leaves with a flood reference brochure, flyer, or other educational material. Last year, a section of the agency's annual client newsletter was devoted to flood awareness. In it, clients were urged to buy flood protection before the onset of the 2006 hurricane season. Tailoring the flood risk message to their community was one of this agency's most successful sales strategies. When an aerial photo of a flooded area in Miami was run on the front page of the Palm Beach Post newspaper after Hurricane Katrina, the Celedinas Agency contacted the Miami-Dade Fire Rescue Public Affairs Office to obtain permission to use the photo on a postcard. On the back of the postcard, the agency published premium rates and emphasized the 30-day waiting period for NFIP coverage to become effective. These postcards were mailed to clients who did not yet have flood coverage. Appreciation for the customization of this postcard to a local threat rather than employing a generic campaign to promote flood insurance was among the positive feedback the agency received as a result of this mailing. The sales force's thorough knowledge of flood insurance contributes to the Celedinas Agency's success in NFIP policy growth. Flood insurance is discussed at every weekly sales meeting. Among the creative activities that have served to focus producers on flood sales has been the posting of signs around the Celedinas offices with slogans such as "Got Flood?" and "Beware a Possible Flood Ahead." During hurricane season, the agency conducts weekly sales contests and provides instructive games and quizzes to familiarize associate agents with the NFIP. These have resulted in increased confidence in the product and consistent communication of flood information to clients. Last year, a successful incentive for boosting flood sales was the promise of a celebratory party if the agency won its WYO-sponsored flood contest. By selling 535 flood insurance policies between June 1 and August 31, 2006, the Celedinas Agency won Nationwide Mutual Fire Insurance Co.'s 2006 flood contest. An agency-wide party was held in celebration. Oswald Trippe and Company, Inc. By the end of 2006, Oswald Trippe and Company, Inc., in Fort Myers, Florida, had more than 8,500 NFIP policies in force, representing growth of 21 percent over 2005 sales. Overall, the company grew by nearly 30 percent, driven in part by the rapid growth experienced in flood insurance sales. Approximately 40 producers contribute to the company's flood insurance sales efforts. Oswald Trippe and Company has built its business on a foundation of personal service. Agents cultivate relationships with their clients and establish the trust needed for discussions about flood insurance coverage. Every customer who purchases a homeowners policy is counseled about the critical need for flood protection, given the risks posed by Southwest Florida's unique topography, low elevation, and coastal location. It is a company policy to urge customers to carry flood coverage regardless of the flood zone in which a home is located. When appropriate, the flood claims history of a building is provided to encourage customers to reduce exposure to risks. The loss history also can be used to establish the most comprehensive coverage for the lowest rates. Before policy renewal, a customer's coverage is reviewed and recommendations are made for retention. No policy is ever simply "rolled over." Customers are told how much coverage is needed, why, what the benefits are of sufficient coverage, and what the risks are of inadequate protection. In addition to one-on-one counseling and discussions with clients, the Oswald Trippe and Company sales team take responsibility for educating residents in the community at large about flood risk and preparation. The company considers this a particularly important service in light of the great risk of flood in the region and the fact that a majority of its population has settled there from other parts of the United States. Mass mailings of educational materials about flood risks and coverage are conducted with partner companies, and Oswald Trippe and Company also distributes flood awareness and coverage information through the service organizations of which the company's producers are members. Oswald Trippe and Company sends agency staff to flood insurance training at clinics, conferences, and seminars that allow them to stay current in their understanding of flood protection as well as changes in NFIP policies and regulations. In addition, regularly scheduled staff meetings always include flood insurance product information. |
|
Last updated on July 1, 2007
|
