A balance of power.In the article "Winning Small" (Best's Review, June June: see month. 2004), the author is concerned about the increasing leverage that growing agencies have over insurance companies. He appears oblivious, however, to the far greater consolidation in the carrier ranks and their consequent con·se·quent adj. 1. a. Following as a natural effect, result, or conclusion: tried to prevent an oil spill and the consequent damage to wildlife. b. increased leverage. His message is that larger agencies are bad, but larger carriers are good. The author's position is summarized nicely in the last sentence of the article, "[Insurance] companies interested in harvesting a brighter future are following a strategy that keeps them in control." Again the message is that negotiating leverage is good, but only when in the hands of the carriers. He cites that carriers' profits are reduced by "... agency's demand for greater compensation and more liberal underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. ." I must disagree. In every business transaction both the buyer and seller seek increased value and lower transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). . This is the nature of commerce and should not be perceived in any way as a bad thing. If an insurance carrier suffers, it is not the result of an agency's unreasonable demands, but rather the result of the carrier acceding to such unreasonable demands. When dealing with agency/carrier relationships, it is ludicrous to suggest that one or the other be "in control." The very best relationships occur when both the agent and company clearly define and communicate their needs and aspirations aspirations npl → aspiraciones fpl (= ambition); ambición f aspirations npl (= hopes, ambition) → aspirations fpl and then work together constructively to achieve their goals. William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack R. Fisher Senior Vice President Rebsamen Insurance Little Rock, Ark. |
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