General Articles

Information overload has serious implications. Failure to respond to a client or carrier request can be harmful from both an E&O and a client service perspective. Laura Nettles tells you how to manage your work intelligently when everyone is expecting an immediate response.

When it comes to our privacy, trust, and security in this modern age, we have come to have more of an inherent focus on how we can obtain more access, easier and more securely. When we want to learn about online privacy systems like VPN technology, we opt to find out more online , to educate ourselves. The way that we handle our insurance is no different. In fact, insurance is the latest industry to find itself infiltrated by the modern prowess that is blockchain technology. Decentralised in nature, blockchain is the pioneering force in the drive to a future that is more sectioned, more secure, and safer than ever before. Insurance is one of the last pieces of the puzzle in the pursuit of this ideal.

Why Is the Referral Process the Most Powerful Way to Sell?

Without question, selling through referrals is the most powerful way to build your practice; not to mention the most enjoyable. Producers who really love prospecting for business through cold calls are rare birds. My guess is that you're not one of them. In this age of voice mail, increased competition, and everyone being super busy, cold calling has become less effective.

Bob Kerrigan, one of the most successful agents alive, says, "The way of the world is to meet people through other people. And the referral is the warm way we get into their lives."

Independent Agency System carriers that rank high on the Gomez insurance Web site index probably congratulate themselves on their achievement - the result of hard work, creativity, and spending in the nine or ten-digit range. But what if these high-ranking carriers are scoring well in the wrong game?

Suppose Gomez and other Web ranking services have no idea what they’re talking about? What if they base their evaluation criteria on an implicit misunderstanding of the insurance business? What if "winning" means embracing a bankrupt business strategy?

Ten years ago it took $5 million in total agency revenues and about $30 million in Property/Casualty premiums to land on the top 100 agency list. Now an agency needs to have in excess of $10 million in revenues and $60 million in premiums to make the cut. Ten years ago the average independent agency in the country had $250,000 in total revenues with six to seven people. Today the average is close to $600,000 in revenues, also with six to seven people. To use a phrase from Bob Dylan, "the times, they are a changing."

Most agencies plan, measure and record the sale of new business, but very few take the time to really control the loss of business to the agency. It is the opinion of our firm that no agency really profits if business keeps coming in the front door and going out the back.

Do you regularly negotiate such contractual issues as commission rates, growth goals, etc. with your companies?

Congratulations to the 57% who responded, “Yes!” Based on those positive responses, it appears that agencies of all sizes are negotiating. Negotiations aren't limited to larger agencies. If these agents weren't succeeding in their negotiations, even in a hard market, they'd be giving up. Although 57% is a good percentage, I'd love to see this number keep growing. If you aren't negotiating contractual issues with your companies, isn't it time to begin?

With the dawn of every new media technology comes the fear on the part of agents that their customers will either find a new agent or buy insurance direct from the company. In this document, Sam Meyer describes how you're now in a position to encourage your clients and prospects to buy their insurance direct — direct from you!

After an automated sales center is up and running, it's up to producers to act on the qualified leads that the sales center coordinator, assistant, and support staff have worked on.

Prospecting is an old term; replace it with "business development."

Business development requires a positive attitude, confidence, and discipline. The business development mind-set can be picked up by anyone who has a desire to step to the front line and just do what must be done. Commit to a business development plan of action, then organize and follow through.

In a small company, the death of the key executive can often trigger a complete business failure. A larger business can take basic precautions,...