Insurance with International Flair

What’s going on in Japan? In the midst of the land of hybrid cars, mega corporations, bullet trains and electronics comes the first annual convention of the Independent Insurance Agents & Brokers of Japan. That’s right, Big “I” membership is growing at a steady clip in Japan, and our members had their first annual convention in Tokyo on May 30.

There are many parallels between the first gathering of agents in Tokyo with another historic first gathering of agents. On Oct. 1, 1896, 20 insurance agents from across the United States gathered in Chicago with the purpose of combining forces to protect their businesses and their clients. Agents in the United States at that time were facing commission reductions from their companies, attempts by companies to conduct business directly with the insurance consumer and claims issues as a result of several catastrophic fire events in major cities. This was, of course, the formation of the organization now known as the Independent Insurance Agents & Brokers of America.

The emerging Japanese insurance marketplace is dealing with many similar issues today. As the Japanese insurance marketplace becomes more deregulated as a result of 1996’s GATT trade agreements (now the World Trade Organization agreements), more Japanese insurance agents have embarked on the same path as agents in the United States. Agents in Japan are facing stiff competition from the legacy insurance companies there in terms of rates, commissions and penetration of the marketplace in a fair and equitable manner. The Big “I” of Japan was formed as the chosen model of the insurance professional with a vision of the future.

Why are agents and brokers joining the Big “I” in Japan? For the same reason agents and brokers do in the United States—and Italy, New Zealand, Ghana, Vietnam, Serbia and other countries around the world. Independent agents and brokers join the association to enhance their competitiveness, agency value, education, efficiency, revenue and much more. They also want access to programs such as Best Practices, the Virtual University, the Trusted Choice® brand (yes, there are Trusted Choice® agencies in Japan), the Agents Council on Technology, Independent Agent magazine, Big “I” research and more.

I addressed the approximately 200 Japanese independent agents and company executives at the convention, along with Bill Berkley, chairman and CEO of W.R. Berkley Corp. We delivered presentations and took questions from the audience. Berkley is assessing the feasibility of doing business in Japan and, if he does, he has declared that he will have his appointed agencies own their expirations. The Big “I” wants to empower Japanese agencies in ways that would create a new paradigm in the insurance agent-company relationship in Japan.

Key individuals to the IIAB of Japan include Akio Takahashi, who was elected the first president of the IIAB of Japan during the convention. His agency, World Insurance Group, has branches in Tokyo and Osaka and is primarily a commercial lines agency. Sue Noda is the managing director of the IIAB of Japan. She is also a Big “I” member in California and has been involved with the insurance industry for many years.

During the trip, we also met with insurance company presidents, trade association leaders and others involved in the industry. It was refreshing to see the enthusiasm and passion for the independent agent and broker system in Japan.

Our brethren in Japan face many of the same challenges that agents face in the United States: technology issues, challenges in agent education, problems with regulators, disagreements with companies, the need to increase revenue and become more efficient and the need for more markets.

The insurance industry is rapidly going global and the issues are seeping across international borders. Whether it is net quoting in Finland, transparency in Europe or reinsurance challenges in U.S. coastal areas, the insurance marketplace is becoming increasingly interdependent. The Big “I” members of Japan are enthusiastic independent agents who are committed to taking their agencies to the next level of productivity and profitability, just like American Big “I” members.

Bob Rusbuldt (bob.rusbuldt@iiaba.net) is CEO of the Big “I.”