EFFECTIVE USE OF SERVICE CENTERS
by Annie Knox
Implementing these steps by Annie Knox will help you to realize the benefits of placing business in a service center, and make the use of service centers an integral part of your Small Commercial strategy.
In our recent work with agencies, handling small Commercial Lines accounts has figured prominently in the overall recommendations for improvement. We’ve been surprised at the large volume of accounts with commissions of less than $1,000 that reside in both the “Select” departments and within the middle market and large accounts books of business.
Many agencies struggle with monitoring growth in number of accounts by size. Even when strategic objectives are in place to grow in certain segments, small accounts seem to grow quietly to a larger and larger percentage of the overall book. This results in Account Managers spending a large amount of time on accounts that generate a fraction of the revenue in their books of business.
When comparing the volume of accounts with the commission they generate, it becomes clear that, to make a profit, the agency must handle these smaller accounts in a streamlined way. Service Centers are one option of handling this type of business profitably.
These tips can help you use carrier service centers successfully:
- Set the client’s expectations up front about using the service center. Many agents are selling new accounts without communicating clearly about how the policy will be serviced. Customers call the agency expecting service, and are told to call a toll-free number. This experience sets up a disgruntled customer before they ever access the service center
- Emphasize the benefits of the service center. Many service centers offer extended hours, the ability to quote different options quickly, direct claims handling, and other customer benefits. In not talking about the service center for fear that the customer will object, the agent fails to sell the benefits that are above and beyond what the agency can provide.
- Provide ongoing communications with clients. Periodically send communications such as newsletters, topic letters, satisfaction surveys, etc., so that clients continue to feel connected with the agency. This is especially important when transitioning customers from the agency to the service center
- Clearly note service center clients on the agency management system. You need an easy way to identify service center policies so that if these customers call the agency, they can be redirected to the center. If the agency management system is marked clearly, the receptionist can redirect the call without the service staff ever being involved.
- Communicate with the staff. If your agency is transitioning a book of business to a service center, explain the changes to your staff from the get-go. Explain the methods the agency will employ to communicate the changes to customers. Give staff scripts to use if customers contact the agency. Also explain that it’s essential not to provide service to these accounts, for E&O purposes and to ensure the service center strategy remains on track.
- Provide management/owner support for serving these policies within the Service Center. Support from the top in not servicing service center policies within the agency is critical. If owners and managers make exceptions and have account managers service these policies, it’s better not to put them in the center in the first place.
- Implement “hot buttons” for instant transfer of calls. Calls that come to the agency instead of the service center can be transferred quickly and easily, while the customer should be given the 800# for future reference.
- Don’t maintain files. Use the download to the agency management system as the policy file, and do not maintain any other files on service center policies. Turn off paper for service center policies. Don’t take extra measures to obtain policies, forms, and endorsements by accessing them through the Web and then saving them to the system. The service center should be completely responsible for service and claims, and keep the complete file.
Implementing these steps will help you to realize the benefits of placing business in a service center, and make the use of service centers an integral part of your Small Commercial strategy.