I never sold an insurance policy in my life, unless you include Credit Life insurance and Automotive Extended Care contracts. But I've sold newspapers, china, gasoline, furniture, advertising, buses, and a lot of cars. What I've found is that sales are cyclical, regardless of the product or service. There are good times, bad times, and in-between times.
As an industry observer, I'm disheartened by the attitudes of many agents and brokers. After years of listening to complaints about the 'soft market,' I'm now listening to complaints about the 'hardening market.' I've seen the movie too many times. Most bemoan the end of the world as they know it, and only a few see opportunity amidst the problems. From Los Angeles to Chicago to Sydney, agents complain about increasing premiums, clients who shop around for insurance quotes, and markets that are shrinking due to company mergers, acquisitions, and consolidations. As is so typical of most sales professionals, they blame external problems for disrupting their 'serenity'-or should we say 'complacency?'
One Australian agent wrote me, 'Insurers are adopting a 'take it or leave it' attitude-a lynch mob mentality. At last they're on top.' An agent from Illinois complained that his Workers Comp supplier was downgraded to a B+ due to 'problems with California insurers.' A California agent whined that even his best clients were seeking bids from half a dozen competitors.
Too many agencies are hiding from their staff, clients, and companies. They don't invest in sales training, even though many of their employees have no experience in a hard market. They don't address premium increases with clients until the witching hour of renewal or discuss market issues with their companies until one pulls out. The strategy is to ignore problems until they miraculously solve themselves. That's fine if your immediate goal is to retire.
It's All In The Attitude-What's Yours?
I met the owner of a northern California agency who enrolled six of his producers in a recent sales training seminar that I attended. He's thriving in today's market, adding nearly $100,000 in new commissions every month. And he's doing it the hard way, by writing new business-not buying agencies.
Successful sales depend on relationships and the key to every relationship is communication. In a hardening insurance market, an opportunist would change the script to read:
- 'Because my competitors aren't responding to the hardening market, I can take advantage of their fear and complacency to prospect for new business.'
- 'I need to keep my clients abreast of market changes.' Express a vested interest in your client's well-being and confidence that you're on their side.
- 'Now that premiums are rising, it's time to review my clients' risks and exposures.' Position yourself as a risk management consultant who can help implement safety programs, analyze financial exposures, and develop a plan to minimize them, making the client more marketable to the insurance companies.
- 'I owe it to my clients to give them information that's valuable in managing their risks.' Provide newsletters and magazines with truly valuable information, along with seminar tips and expert consultations.
Are you an opportunist or an ostrich? Every problem offers opportunities. Those who take advantage of them will find a niche with little or no competition.