Ado an analys<strong>is</strong> to determine if I should sellthe equity interest in my Allst<strong>at</strong>e agency.In order to give you some background inform<strong>at</strong>ionabout my story, following <strong>is</strong> anoverview of my CSRP report:• Annual Premium: $4,000,000• Policies in Force: 3800• Retention: 92%• Loss R<strong>at</strong>io: 38%• Loc<strong>at</strong>ion: Storefront, 600 squarefeet, Downtown Manh<strong>at</strong>tan, NYC• Staff – 3• Sale Price: $900,000. Cash less finder’sfee.• Bank Financing: Allst<strong>at</strong>e Bank• D<strong>at</strong>e of Closing: 1/2/2007As part of the process to make <strong>at</strong>houghtful and honest dec<strong>is</strong>ion as towhether or not I should sell the equityinterest in my agency, I developed a l<strong>is</strong>tof questions and answers. Th<strong>is</strong> procedurehelped me immensely in the dec<strong>is</strong>ionspresident of your associ<strong>at</strong>ion, Ilook for subjects to write about th<strong>at</strong>reflect some positive events happening<strong>at</strong> Allst<strong>at</strong>e th<strong>at</strong> are beneficial to ourmembers. But as you know, the news outof Northbrook these days has been lessthan optim<strong>is</strong>tic as it rel<strong>at</strong>es to the futureof the Allst<strong>at</strong>e agency owner. Hundreds,if not thousands, of your fellow agentswill receive 90-day termin<strong>at</strong>ion letters inthe months to come. Th<strong>is</strong> in itself shouldtell you the sort of senior managementteam you are dealing with <strong>at</strong> Allst<strong>at</strong>e.But today I bring you hope th<strong>at</strong> yourfuture can be brighter. Th<strong>is</strong> <strong>is</strong> becausemy own personal experience and the experiencesof many other former Allst<strong>at</strong>eagents have shown me th<strong>at</strong>, yes, there <strong>is</strong>a gre<strong>at</strong> life after Allst<strong>at</strong>e. But in order foreach of you to achieve your optimum future,you must have an achievable planth<strong>at</strong> either includes or excludes Allst<strong>at</strong>e.president’s letterYes, There <strong>is</strong> aGre<strong>at</strong> Life after Allst<strong>at</strong>eThe first step in th<strong>is</strong> analys<strong>is</strong> <strong>is</strong> tounderstand the reason th<strong>at</strong> you need tobegin th<strong>is</strong> process. First, stand back andlook <strong>at</strong> wh<strong>at</strong> has happened, and continuesto happen, to you and your fellow agents.You are not the valued workers you oncewere and, in fact, are now deemed to beexpendable liabilities. Th<strong>is</strong> greed-basedmindset was introduced to Allst<strong>at</strong>e bythe same leaders who oversaw the nearannihil<strong>at</strong>ionof the iconic Sears Roebuckand Company. These leaders have neverunderstood the Allst<strong>at</strong>e agent and it <strong>is</strong>doubtful they ever will.For most of you th<strong>is</strong> will not be a revel<strong>at</strong>ionof any kind, it <strong>is</strong> merely a fact th<strong>at</strong>must be acknowledged. In addition, it’snot personal. It’s just business and youmust start the process on th<strong>at</strong> bas<strong>is</strong>.After spending 46 years as an insuranceexecutive, including 21 years as an Allst<strong>at</strong>eagency owner, I was in a good position toExclusivefocusN<strong>at</strong>ional Associ<strong>at</strong>ion ofProfessional Allst<strong>at</strong>e Agents, Inc.P.O. Box 7666Gulfport, MS 39506-7666Phone Toll Free (877) 627-2248Toll Free Fax (866) 627-2232Web Site www.napaausa.orgEmail HQ@napaausa.orgJim F<strong>is</strong>hExecutive EditorP.O. Box 7666Gulfport, MS 39506Phone (877) 269-3474 • Fax (866) 627-2232Exclusivefocus@napaausa.orgExclusivefocus and DirectExpress are official public<strong>at</strong>ionsof NAPAA - The N<strong>at</strong>ional Associ<strong>at</strong>ion ofProfessional Allst<strong>at</strong>e Agents, Inc. No part of th<strong>is</strong> public<strong>at</strong>ionmay be reproduced without prior written perm<strong>is</strong>sionof the publ<strong>is</strong>her. It <strong>is</strong> the policy of th<strong>is</strong> public<strong>at</strong>ionto reflect the professional thoughts and <strong>at</strong>titudesof our members and to advance the professional<strong>is</strong>m ofthe insurance industry to the ultim<strong>at</strong>e benefit of theinsuring public.The views expressed by NAPAA, or any of its positionsrel<strong>at</strong>ive to its activities and those of its members’actions on behalf of th<strong>is</strong> organiz<strong>at</strong>ion, are expresslythose of NAPAA, and do not reflect the views or theopinions of Allst<strong>at</strong>e Insurance Company, or any of itsaffili<strong>at</strong>es.Letters to the Editor: All letters must include anaddress and a daytime and evening phone number. Wereserve the right to edit letters for clarity and space.Th<strong>is</strong> <strong>is</strong>sue of Exclusivefocus magazine may containarticles of interest submitted to NAPAA by outside authors.NAPAA <strong>is</strong> not responsible for the opinions, adviceor accuracy of any inform<strong>at</strong>ion provided therein.NAPAA’s M<strong>is</strong>sion St<strong>at</strong>ementNAPAA <strong>is</strong> dedic<strong>at</strong>ed to the success of Allst<strong>at</strong>eExclusive Agency Owners and to advance theindependence and entrepreneurial spirit of ourmembers.NAPAA’s GoalsOur goals are subject to alter<strong>at</strong>ion, influencedby a constantly changing environment and theneeds and w<strong>is</strong>hes of our members.NAPAA encourages its members to activelyparticip<strong>at</strong>e in the process of defining and refiningour M<strong>is</strong>sion, Goals and Positions.Our General Goals:• To provide an organiz<strong>at</strong>ion specifically tailoredto benefit Allst<strong>at</strong>e Exclusive Agents• Monitor leg<strong>is</strong>l<strong>at</strong>ive and legal <strong>is</strong>sues pertinentto Agents and their clients• Maintain an Action Fund to support <strong>is</strong>suesbeneficial to agents and clients• Provide reliable communic<strong>at</strong>ions on all <strong>is</strong>suesth<strong>at</strong> affect Agents and the ability to call upon ourmembers to act• Provide Agents with a d<strong>is</strong>tinct voice on <strong>is</strong>suesth<strong>at</strong> affect them, continually exploring optionsand solutions• Make tools and resources available formembers in an effort to increase agency valueand success.For more inform<strong>at</strong>ion,please v<strong>is</strong>itwww.napaausa.org6 — Exclusivefocus Winter 2009/2010
Winter 2009/2010 Exclusivefocus — 7
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