This two-part article focuses on how to get the companies and markets your agency needs.
Securing a company appointment is like getting a loan. When there’s a lot of money to loan, it’s easy — but when money is tight, only those perceived as the most sound financial risks get the cash. The key word here is “perceived.”
In the agency business, it’s easy to get an appointment in a soft market; but only those perceived to be the most “professional” will get the nod when the market turns hard again. When do you need a company appointment the most? During a hard market, of course.
Perception plays a significant part in securing a company contract. Remember that when you deal with individuals, their perception of you becomes their reality. Although there are many professional agencies out there, very few do those little “extras” that differentiate them from the other “me too” agencies. For the agent who’s willing to go the extra mile, the reward can be well worth it.
Companies and agencies trying to form a relationship that should never have been pursued from the start are wasting their time. In an environment of shrinking income and increasing expenses, it’s too much of a financial and time drain to pursue a union that’s doomed from the get-go.
To maximize the effort in acquiring a company contract, you need to prepare a series of documents that will create the total package. The first document is an Agency Needs Assessment that defines the need for the new carrier.
ANALYZE THE COMPANY
It’s essential for the agency to attract the “right” company. After you’ve analyzed the need to secure the contract, create a list of possible candidates, and then analyze the companies’ demographics, automation, markets/services, and future direction.
Demographics. Determine the number of agencies representing this company in your marketing area (which should be defined in the agency Mission Statement).
Use trade association publications and public records to determine the premiums written for the lines of interest to the agency. This should be done for the past six years in order to determine a pattern. Since your agency needs to satisfy its specific needs, you must determine the company’s ability and track record in responding to those needs.
Automation. Don’t waste time dealing with companies whose automation system is incompatible with that of your agency. In the rush to go online with companies, many agencies have failed to recognize the lack of efficiency in multiple inputs. In a typical interface today, the agent enters the same information onto the company’s application and the agency quote sheet, and then enters some or all of the information into the agency’s database and into the company terminal.
An in-depth analysis of the company’s approach to automation should focus on these items:
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Does the company have the ability to upload/download?
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Is upload accomplished with single entry?
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Is the automated transaction completed in “real time”?
Markets/Services. To establish the perfect agency/company match, you need to determine how your agency uses the markets and services its companies provide. For the past several years, many companies have focused on providing a market for certain classes of business.
Agencies with a specific marketing plan that they try to match with the companies they represent have enjoyed much greater success than the “general practitioners” whose marketing plans revolve around waiting for the phone to ring.
Your agency needs a tentative marketing plan while searching — and making a presentation to — the company. This marketing plan should cover:
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Personal Lines
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Commercial Lines
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Life, Health & Accident
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Specialty Markets
Future Company Direction. As you’re obtaining the information needed to make a final decision, it’s important to ask company personnel about their future direction. If a company is interested in making any appointments, they’ll prefer to make a long-term relationship. This means that they’ll readily tell you where they see the company going — and seek the same information about you. When you get serious about a company, don’t hesitate to call the home office and ask top management these questions:
To be continued...