Recruiting Good Life Agents

RECRUITING GOOD LIFE AGENTS

To the city dweller, the question in the headline may sound silly; Life agents are underfoot everywhere. Even in rural areas, there often seem to be more than enough people selling Life products. But the question is tricky:

Notice the word 'good.' That's an important qualifier: It narrows the field.

For our purposes, 'good' means a professional who knows the products, can identify a prospect's insurance needs, and can fill those needs through his or her own knowledge or through associated professionals. It also means someone who can write profitable volumes of business. All qualities are essential. One without the other will not serve an agency well.

The art or science of finding good Life agents, or spotting recruits with the potential of becoming good Life agents, is shrouded in a thick fog. Some of the larger Life carriers used to spend more than $125,000 to locate, test, evaluate, contract, train, manage, and house one new agent through the first two years. And yet, even with that expense and time, 80% of those agents left after five years. Many established companies no longer go that route.

Fortunately for P/C agencies, recruitment is much shorter, easier, and less costly. You can offer an opportunity that will tempt even the best of the experienced pros. The principle enticements are: a possible chance for equity in the Life business you build together; much better working hours; upgrading of prospects; a chance to shed the shackles of company rigidity in favor of relative independence; and a chance to make more money for much less work.

One of the most important enticements is relief from the biggest monster in the Life insurance field and killer of agents' careers: the prospecting problem. Not only does your agency have file drawers full of Life prospects, but it has access to all the prospects through organized, efficient, proven lead systems that provide live leads every day.

The first step, then, for a P/C agency principal to take in finding the right Life producer is to count the assets most attractive to the potential Life producer: the size and quality of the agency and its body of insureds, its growth potential, its staff, and its standing in the community. Include the package of lead methods that set your agency apart from most others.

The second step is to find Life producer candidates, and to have an idea of what you want to offer them. To define the Life agent you're looking for, the basic characteristics should include:

• sufficient years in the Life business to be beyond the novice stage; having enough expertise to handle certain types of business without help; knowing how to identify other business opportunities and obtain proper expertise for them; and showing the potential of running a book of Life business;
• Personal qualities compatible with you and your associates, and not abrasive to insureds;
• positive response to the opportunities the agency offers in Life, and the desire to earn and enjoy them; and
• anything important enough to be a strong factor. For example, body chemistry-the 'feel' of good communication-may be vital. Clarity of expression, sincerity, good past references, business-like dress and bearing, even the distance from the home, may make a difference.

Now you need to find someone to fit the profile.

A personal recommendation may be the best source. List a few people whose business opinions are valued, but who have not bought Life insurance from you. Call one them and say: 'This may sound like an odd question, but I'm going to ask you the name of the person from whom you buy your Life insurance. My agency has a very attractive position for a high-caliber agent, and since I think highly of your business judgment, I'd like to ask if your agent might know of someone who might be ready to step up. Are you satisfied with the presentations your agent gives you? The explanations? The service, the feeling of professionalism? Any important negatives? This will all be confidential, of course, and used for no other purpose than what than what I told you.' A few calls like this should build a good pool of potential candidates.

When you call an agent, establish a comfort zone early. Assure confidentiality, for some managers frown on the slightest hint of proselytizing. One approach:

'Bob, our mutual friend, Joe Green, speaks very highly of you. In confidence, I'd like to ask if you know of a Life agent who might be ready to step into a special opportunity at our agency. We have [here, list briefly a few highlights of your Life potential, such as 2,000 insureds and a P/C volume of $4 million, meaning an immediate potential of $6 million in Life and Health premiums]. We also have very effective lead systems. We need a true pro. Do you know of anyone we might talk to?'

Sometimes 'Bob' will respond that he may know of someone, but before revealing the name, he would like to find out a little more about you and the agency. That's fine! Bob may be curious or interested, or even itching for a change, but afraid to let word leak out that he's interviewing. So Bob is free to refer someone else, or say, in time, 'I'm interested for myself, let's talk.'

Similarly, you may ask Life managers, general agents, brokers, or others in the field to suggest colleagues. It's not unusual for a manager to apply- not surprising when you consider that often, a step up in title comes with a step down in income. Many a successful Life agent has climbed the ladder all the way to home office vice-presidency, then 'promoted' him- or herself to higher income by resigning the job and going back to production.

Failing personal contacts or referrals to agents, you might circulate announcements at places like CLU/ChFC chapters and Million Dollar Round Table meetings; in publications on the local or regional level; and among Estate Planners Council functions, financial planners' associations, or Health insurance underwriters' groups. Or try Certified Employment Benefits Specialists (CEBS) if you're lucky enough to have some in your area.

You might also ask employees of the state insurance department; sometimes they know of available agents. If there's a school or college of insurance, license-preparation classes, or continuing education courses in the area, ask the teachers about their better Life students. The P/C agents' association might also be a source.

Another source of agents would be your area's professional journals for doctors, dentists, lawyers, and other high-target markets of insurance buyers. Look for agents advertising there. P/C agencies can offer them the powerful prospecting tool of the P/C relationship, for the professional liability topic is a hot button that often leads to Life sales.

Sometimes good results are reached by placing an advertisement in the local newspaper. Generally a display ad on the financial page draws the attention of agents who are not reading want-ads or classifieds. Here's a sample of wording that has drawn well:

Unusual career opportunity for high income, with management and equity ownership potentials. We are a well-known Property-Casualty agency with a large, loyal clientele. We have an effective, proven lead system. Successful candidate should be an experienced pro with high standards. Serious Life agents, financial planners, and PPGAs ready for a mutual commitment are particularly sought. Replies strictly confidential. [Blind box number, city*]'

* Some agencies prefer to list the agency name and phone number instead of a blind box. In that case, add: 'Written replies only. No fancy resume is required, but no phone calls please.'

Arrange the interviews so that candidates cannot see each other, to avoid possible embarrassment for them. In some cases, unknown to each other, both the manager and his or her best producer were applying! Strict confidentiality is important and appreciated.

It's not enough to recruit Life agents; your agency needs agents who can fill prospects' needs and write profitable lines of business. Take stock of the real benefits of working for you agency. Consider the personal characteristics, skills, and experience that could greatly help your agency. How might references and networking help? Try the classified ad we've composed to see how it works for your agency. You've got to explore many avenues to get the best Life producers you can find.