Chairman and CEO Brian K. McCarthy (standing) and John F. McCarthy, Jr., senior vice president for agency services for CISA, with a model of the proposed Sam's Club/GROUPadvantage in-store kiosk.
The GROUPadvantage sales team is led by CISA executives John F. McCarthy, Jr., (far right) pictured here with three of his four regional vice presidents: (from left) Michael McShane, Richard Metivier and Dennis Ryan. Gary Fornari was not available.
There are four major areas where independent agents are always looking to gain control. They are: development of diversified market reach, technology that truly reduces their redundant efforts and increases accuracy, affiliations with large organizations that offer captive sales prospects and the ability to gain market share from the direct writers.
Consumer Insurance Services of America, Inc. (CISA), believes that it can accomplish those objectives, and more, for independent agents who are seeking the opportunity to: commit to the growth of their organizations, become part of a rapidly expanding national network, and adopt a technology platform that will change the ways the insurance industry has historically performed many, if not all, of its everyday functions.
All of the above, coupled with CISA's recently announced contractual agreement with Sam's Club, the nation's leading membership warehouse club, is clear proof of their taking the proper steps to deliver on their corporate commitments.
The terms of the contract were recently announced at CISA's annual conference in Amelia Island, Florida. CISA has developed a franchise program for its affinity marketing program, GROUPadvantage®, and over the course of the next seven to twelve months will begin to roll out the GROUPadvantage program to independent agents who have locations proximate to Sam's Club stores.
This relationship program will offer a full complement of personal lines insurance products, including life, accident, health insurance and financial services but will also offer limited commercial lines products. This platform for delivery offers franchised agents access to business and consumer members of the Sam's Club store in their vicinity and the authorization to sell Sam's memberships to consumers through their affinity marketing efforts.
The links among all of the objectives are the multiple sales channels found through affinity marketing, Sam's Club membership base, in-store or at-store sales stations, call center and the workplace, as well as technology and carriers. Bringing all of these elements together creates a unique sales and growth energy.
CISA's sister company, Insurance Technology Services of America, Inc. (ITSA), is a key link in this process and will provide agents the total connectivity package of Internet-based technology necessary to expedite sales, reduce costs and streamline paperwork. The business and technology model that these two companies have designed and begun to implement has enabled them to garner the partnership and support of many insurance and technology industry organizations, which will play important roles in the overall execution of this program.
"This is our strategy for establishing the standard for affinity and workplace marketing and for the technology of our industry," Brian K. McCarthy, chairman and chief executive officer of CISA and ITSA told Rough Notes. "We believe this opportunity with Sam's Clubs gives agents the chance to participate in the most effective insurance marketing concept of our generation and, in turn, increase independent agency market share against the direct writers."
CISA has been on the national scene for a little less than two years, during which time the Beverly, Massachusetts-based firm has developed a network of agents from New England to Hawaii for the distribution of the multiple-company, multiple-product program, GROUPadvantage for workplace and sponsored programs.
ITSA's technology platform has proven to be the crucial final element to making this concept an attractive option for agents who are committing to growth and adoption of the new technology.
Now, with the Sam's partnership, CISA/GROUPadvantage/ITSA are about to make a dramatic splash in the affinity market that could have far-reaching effects on the industry for agents and companies alike. "The potential for success in this venture for both agents and carriers is unlimited," McCarthy declares.
CISA currently is enlisting a variety of national and regional carriers, which will deliver one or all of the above mentioned product lines and, because of their affiliation with the technology and the GROUPadvantage program, these products will be discounted offerings. The discounts will be a direct result of the technology delivered in this process to all points in the sales, underwriting and policy issuance and change process.
Sam's Club, boasting membership warehouse stores in 48 states, sees its implementation of GROUPadvantage as a perfect fit for its new corporate focus on member benefits. The delivery of high quality expanded member benefits falls into line perfectly with Sam's new membership and membership retention goals, and Sam's expressed its full-fledged support for the novel program at the CISA convention.
Sam's Club's support provides a significant boost for a program that has yet to be implemented. McCarthy gladly accepts the endorsement. "The clearly defined quality and value within this program creates a winning situation for everybody involved: agent, carrier, Sam's Club consumer, business member and GROUPadvantage," McCarthy says. "This type of opportunity comes far too seldom and it has to be driven by independent agents for it to be successful.
"Sure, there are challenges ahead," McCarthy continues. "But those are what make this kind of a venture so exciting, motivating and rewarding."
CISA's immediate challenge is to parlay the proper mix of franchised agents and carriers to execute a successful rollout of the program to Sam's Club members in selected pilot states through '98, then complete the rollout nationwide by the end of '99.
Agencies such as The Laub Group in Milwaukee; and Ramsey, Krug, Farrell & Lensing in Little Rock, Arkansas, have been seeking to revitalize their operations and have found GROUPadvantage to be just the vehicle for injecting growth through cross sales into their organizations.
"The GROUPadvantage/Sam's arrangement is a great opportunity for agencies to enter into the affinity marketing arena in a significant way," says Ron Lensing, a partner at Ramsey, Krug, Farrell & Lensing. "This partnership gives immeasurable credibility and leverage to GROUPadvantage and its agents, as well as access to a market we previously never have entered into. Link in the ITSA technology and it's a complete package any agent should be thrilled to get his or her hands on."
"This offering opens all kinds of doors for agents wanting to get ahead of the pack, so to speak, in affinity marketing," says Carol D'Amato, a vice-president at The Laub Group."I realize, after 26 years in the P&C industry, that this is a phenomenal way to change our business in a positive way. We can now be more innovative and clearly stand apart from our competition (the direct writers).
"With this kind of program," D'Amato adds, "there is no more need to sit behind the desk and wait for the phone to ring, then sell from the kitchen table while sipping lemonade and petting the family dog. Now we can sell not only in the workplace but from a Sam's Club/GROUPadvantage location or even over the Internet."
Additional options for consumers
The GROUPadvantage/Sam's offering will also allow consumers to conduct business from the agency office or via a 24-hour, seven-day-a-week national insurance center.
The concept is so appealing to E.W. (Ted) Blanch, Jr., chief executive officer of E.W. Blanch Holdings, Inc., the largest and fastest growing domestic reinsurance intermediary and risk management consulting services firm in the country, that his organization is investing more than $7 million in the venture.
"The current distribution system demands changes. There is too much duplication," Blanch told the CISA convention audience. "This (GROUPadvantage/Sam's) program strengthens the focus on what the customer wants and needs and also drives down costs and reduces duplication. This program changes the game. Just as important, this program enhances what customers want as much as anything: friendly and close relationships with those they do business with." *
©COPYRIGHT: The Rough Notes Magazine, 1998
Further information is available at groupadvantage.com