Get your companies to listen to you — for your mutual benefit.
Recent research has revealed that all company employees receive a vaccine on their 121st day of employment that prevents them from hearing what agents say. This vaccine is critical to their psychological health. Imagine what would occur if they actually took to heart all the complaints, suggestions, demands, and criticisms provided daily by agents. Imagine how quickly they’d descend into the depths of depression if they actually cared when tears rolled down agents’ faces while they deplored the latest commission cut. The vaccine is key to their survival.
What’s this secret vaccine? Agents everywhere provide it! By the time a company person has been employed for 121 days, they’ve already heard so many complaints and criticisms, almost exclusively without supporting evidence, that they quit listening.
An antidote to counteract the vaccine now is available for select agencies. The cure, although potent, is not 100% successful. For this reason, the scientific community around Hartford, CT continues working around the clock for a better remedy. Until the Hartford scientists concoct a more stable antidote, your only recourse is to depend on this less reliable cure. This antidote isn’t available at any pharmacy. You must mix it yourself because the process is so potentially dangerous that insurance companies won’t cover it at any price.
INDICATIONS
Employees of companies that are poorly run, experiencing growing pains, can’t stick to one strategy, or won’t listen to sound advice are all candidates for the antidote. If you do business with such a carrier and you’re fed up with the company people not listening, consider applying this antidote.
INGREDIENTS
- Four Parts Facts (very dangerous to obtain)
- One Part Agent's Kryptonite (the most dangerous ingredient)
- Six Parts Presentation
- Eight Parts WIFC (What's in It For the Company)
Step 1: Carefully gather at least four facts. The most effective facts include:
- Specific knowledge about successful companies. Many company people deny completely that any insurance companies are successful, when in fact some companies are making large sums of money. My analysis suggests that many insurers are doing just fine, while those in trouble prefer to believe that all carriers are in the same, sinking boat. They also like to believe the cause is no fault of their own and beyond their control.
Such denial is prevalent. Here are two examples:
- A cover letter sent recently by a prominent but troubled P/C carrier effectively stated, “As you know, were having trouble, like most other insurers.”
- During a conversation with an insurance company CEO, I mentioned how much another company was making on an operating profit margin basis. He responded, “No insurance company can make that much in this market.”
Help your companies break out of their states of denial. Show them proof that other companies are successful. This is like helping an alcoholic realize that they’re alcoholic before they can begin treatment.
- Specific knowledge about how successful companies operate. Companies get tired of hearing complaints without suggestions and carefully considered recommendations. Show these struggling people how their competitors are succeeding. These facts are often available from the successful companies themselves when they brag about their achievements.
- Specific facts about failing companies. Knowing a company’s situation better than their marketing reps gives you leverage and respect. It opens their ears wider and makes the antidote easier to take. We’ve been amazed at the responses our agency clients get when they present marketing reps with our company stability analysis.
Step 2: Mix in plenty of WIFC
As you gather facts, be certain to address What’s in It For the Company. Some extremely successful companies are now getting high rates because they can — not because they must to survive.
Companies can make a few relatively basic changes to get healthy adjustments that are far less expensive than a plummeting stock price. Show them what you can do for them and what other agents will do for them if they:
- Introduce a stable marketing environment.
- Work with you to find ways of writing your accounts.
- Maintain commissions (remind them that when the airlines cut travel agents’ commissions, customers found lower prices on their own, which eliminated any savings the airlines gained by commission cuts).
- Hire competent underwriters.
- Hire enough underwriters.
- Recognize that underwriting is not a black and white world.
- Work to create core competencies that are real and not just the latest jargon.
Step 3: Pour on the Presentation
Most insurance company employees have the power to say, “no,” but very little authority to say, “yes.” This imbalance creates a natural barrier to finding the perfect antidote. To succeed, you must make a powerful presentation (easy for good salespeople like you and your producers, right?). Companies must be sold, just like customers.
During the presentation, prepare to disable the company rep’s ability to dismantle your advice. How? With the most dangerous element of all: Agent’s Kryptonite.
Agent’s Kryptonite is a tough, powerful, almost lethal element also known as documentation. A written recommendation can’t be denied as easily as a verbal one. However, Agents Kryptonite requires thought and effort, which can discourage many agency owners. They decide that they’d rather just gripe, which is why company people get their vaccines in the first place. Are you strong enough to handle Agent’s Kryptonite?
ADVERSE REACTIONS
Agents are often appalled at the thought of having to educate companies about their own best course. This side effect is widespread and to be expected. However, a little discomfort now could help prevent a major illness or even death.
Company employees have reported nausea, fever, chills, and other flu-like symptoms upon receiving the antidote. Such symptoms usually subside after leaving the agent’s office. The antidote won’t work on many company people. Given its great expense, use it only on the most receptive prospects.
PRECAUTIONS
Recognize that some companies are beyond saving. Don’t endanger yourself by trying to help them. We must resign ourselves to the fact that these companies will die a slow, painful death. Many times it’s in an agent’s best interest to distance themselves from these insurers.
FINAL RESULTS
The antidote, although not 100% effective, is still your best shot (pun intended). The cure is painful, though, and like so much in life, untying a knot can be far more difficult than tying one. Not all the companies that you try to help will get the message. But you have to try — otherwise, you risk going down with failing companies.