Donna Kozik
www.DonnaKozik.com
Donna@DonnaKozik.com
619-297-1749

Article Writing Sample
Writing sample from the April 2000 Professional Independent Insurance 
Agents of Illinois Insurance Insight magazine 

Independent Agents Credited as Competitive Advantage

Although new to Illinois, Erie Insurance Group is celebrating 75 years in the insurance industry.  Its home office is located in Erie, Pa., and it boasts 22 field offices in 10 states and the District of Columbia.  It has over $4.8 billion in policyholder surplus and over 2.7 million policies-in-force.  But there's more than impressive numbers associated with this company -- there's also a fascinating story of a man with a dream. 

Erie Insurance, or, as it's fondly called by its employees and agents, "The ERIE," was started in 1925 by two entrepreneurs from Pennsylvania, H.O. Hirt and O.G. Crawford.  Named after the city where it all began, Erie Insurance and its affiliated companies have grown from an idea penciled out on a 10-cent tablet to the 13th largest auto insurer and the 16^th largest property/casualty insurer in the country with over 2.7 million policies-in-force. Members of Erie Insurance Group write property/casualty and life insurance products in 10 states and the District of Columbia. 

Through it all, The ERIE has relied on independent agents as its sole form of distribution.  It now boasts of 5,500 ERIE agents in Pennsylvania, the District of Columbia, Indiana, Maryland, New York, North Carolina, Ohio, Tennessee, Virginia, West Virginia, and a growing number in our newest state, Illinois. Recently announced plans call for The ERIE to begin writing in Wisconsin in 2001. 

All impressive milestones as The ERIE approaches its 75^th anniversary on April 20. 

Service from the Start 

After O.G. Crawford retired in 1933, Erie Insurance became known as a one man operation and continued to thrive under the watchful eye of H.O. Hirt.  Hirt had a clear vision of what an insurance company should offer -- a vision still closely adhered to by the members of The ERIE. 

Stephen A. Milne, only the fifth president and chief executive officer in the company's history, credits Erie Insurance's longevity and profitability to the service ideals Hirt set in place from the beginning. 

"I knew and worked with founder H.O. Hirt, and I understand what he wanted to accomplish with this business.  As he wrote to agents in the original Agents' Handbook, `The ERIE is committed and dedicated to giving ERIE policyholders as near perfect protection, as near perfect service, as is humanly possible, and doing so at the lowest possible cost,'" said Milne. 

"We have never lost sight of that high purpose." 

An example of ERIE's service lies in last year's Hurricane Floyd catastrophe that hit the eastern seaboard. "Our response to Hurricane Floyd is an excellent example of how our emphasis on exceptional service contributes to our success today," said Milne. "We have a finely-tuned catastrophe response system, and we were ready to act when Hurricane Floyd hit. 

"We anticipated that claims calls would exceed the capacity of our agents and field offices and set up a phone bank in the home office with volunteers from every division.  We even solicited claims from our Policyholders -- and in some cases literally stunned people with our superior service." 

Unbeatable service, dedicated employees and a strong relationship with independent agents aren't the only things that make Erie Insurance stand out in a competitive industry.  Another great strength is the company's financial stability.  "We've consistently been successful in achieving a combined loss ratio of approximately 100 percent," said Milne. "In September 1999, the combined loss ratio for the industry was 106.3.  Maintaining a combined loss ratio of 100 percent with a comparatively low expense ratio means we are giving maximum value to our Policyholders." 

Milne credits ERIE Agents with a large part of the company's success and calls it the company's chief competitive advantage. 

"Our customers want to know that if they have a question about insurance, they will be working with someone who is willing to explain the answer, who will remember the conversation and who will inspire their trust.  There's going to be an increased need for this kind of personal relationship; we're providing that level of service now and we'll continue to provide it. 

"We have a strong relationship with our agents and this is truly one of the reasons for our success.  As the industry changes and there are more ways for people to purchase insurance, The ERIE remains committed to selling policies through its independent agency force." 

From the Beginning 

Even before he founded Erie Insurance Exchange in 1925, Henry Orth Hirt was a salesman with a vision of what he thought an insurance company should offer its policyholders, agents and employees: superior service above all. 

Insurance was a calling he never expected.  "There aren't too many kids that say, `I want to be an insurance man,' like they say they want to be a policeman or a fireman or an electrician or dentist, engineer or anything of that sort," H.O. once told Virginia Field Employees.  "As many of you have, I got into this by pure chance." 

Hirt had his hand in just about every part of the fledgling company.  A very large factor in keeping agents informed and enthused has been a weekly publication called the "Erie App-a-Week Bulletin."  The first was issued on Monday, Aug. 8, 1931 and has landed in the in-basket of agents and employees on every Monday since.  Editor Hirt used to pepper the publication with tongue in cheek drawings of himself spouting words of wisdom to agents. Now in its 3,581 consecutive week of production, today's "Bulletin" informs agents of marketing strategies and technical changes. 

Even though Hirt seemed to have perseverance to spare, the early days were difficult, especially when the nation plunged into a depression in the 1930s.  In addition to tough economic times, competition among insurers was intense, even then. When asked how Erie Insurance, an infant reciprocal insurance exchange, could possibly survive the deadly competition of the entrenched stock and mutual companies of the time, Hirt was philosophical and never put his company in second place.  "You don't understand," he said. "We are the competition." 

Hirt told the story of his superior company and service for 57 years, until his death in 1982 at age 95. He said the secret to his success was stubbornly refusing to fail. 

"I recommend the virtue of stubbornness to my friends," Hirt wrote an ERIE Agent in 1976.  "The easiest thing in the world to do is to fail, but if you stubbornly refuse to fail, you won t fail, and if you live long enough, you will have succeeded in some degree."