More from Conn. Big ‘I’ Gathering: Insurbanc Turns Profit; Agencies Face Privacy Demands

While the brokerage investigations took center stage at the mid-year meeting of the Independent Insurance Agents of Connecticut (IIAC), agents did get around to other subjects including how their own bank is doing and what they should be doing about customer privacy.

The independent agents’ bank, Insurbanc, has posted its first profit after three years of operations.

In remarks at the mid-year meeting, Michael Herlihy, chief executive officer of the Conn.-based national “community” bank for independent agents, said the firm showed a profit for the first time in August, a highlight of what Herlihy said has been a “great” year for the institution.

Insurbanc now boasts $42 million in loans and about $40 million in deposits.

“Our modest success is due to the value we bring to agents. We understand your business,” Herlihy told the Big “I” members.

Herlihy told agents that in addition to handling their own financing needs, Insurbanc is in a position to help agents’ commercial accounts in need of loans as well.

Agents also learned about how best to safeguard agency and customer records from identity theft and make sure they are in compliance with Gramm Leach Bliley and other privacy requirements.

Mike Trefz, of United Compliance, walked owners through the steps every agency should take including coming up with a plan, procedures and training to neutralize any possible threats to customer privacy and assuring that third parties an agency uses are also in compliance. He warned agents that all financial institutions can be subject to an audit and fines by the Federal Trade Commission (FTC) over their privacy rules. FTC fines go up to $11,000 per violation.

“So you need a written, customer information security plan,” Trefz stressed.