2001 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

E FFECTIVE P ROCEDURES /P ROCESSES At this size, there is no room for flying by the seat of the pants when it comes to procedures and policies. Best Practices agencies report that frequent changes in technologies and products require a more “dynamic” approach to establishing and managing procedures and policies – the days of a somewhat “static” procedures manual are a distant memory. The Best Practices surrounding this critical area include: a dedicated “Quality Control” manager or committee, periodic E&O audits by a third-party, a procedures platform (online manual, Intranet site, etc.) that is easy to update and access, an ongoing commitment to reviewing procedures to ensure they remain current, ongoing training for producers and support personnel, a cooperative partnership with the agency’s technical employees, and the unwavering support of upper management. C ARRIER R ELATIONSHIPS The Best Practices used to ensure carrier and vendor relationships remain maximized tend to revolve around a partnership paradigm in which shared values and objectives serve as the foundation. Carriers still complain about inadequate volume and agents still complain about constantly changing carrier appetites, but at this size and with this much volume at stake, agents and carriers find themselves with a tremendous incentive to truly partner with one another. Many Best Practices agencies in this size group report that their key carrier business partners serve as active participants in their own agency planning process. Other Best Practices identified include: frequent social gatherings, multi-tiered company relationships throughout the agency, a limited number of markets that are supported, partnerships for niche and program development, and frequent and open communications.

“ Procedures must be written and people must be held accountable for abiding by them.”

“Procedures are continuously updated.”

“We never, ever burn a bridge with an insurance carrier, even when a contract is terminated, recognizing that there will probably come a day when we will need each other again.” “The same fundamentals that support good employee and good customer relationships support carrier relationships. Relationships should be established at multiple levels and should be built upon mutual respect, clear communication, and integrity.” “We try very hard to find those partners who share the same values we do.”

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