2010 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

Mgmt. Perspectives

Recruiting & Developing Talent It is no surprise that talent recruitment and development is the key performance indicator of the most successful agents and brokers. This is true for both the sales and service positions within the firm as “almost everyone in the agency will have some sort of interaction with a client at some point”.

most often used source of training. They include web- based programs, insurance company classes, and on- site trainers hired to conduct special sessions. However, many successful agents and brokers have developed customized in-house training and mentoring programs to “train our way within the agency”. Finally, the requirement of having employees obtaining various professional designations has proven to be a successful training tool. Achieving Organic Growth Insurance agents and brokers have been hit by a perfect storm over the past few years -- a continuing soft market and a depressed macroeconomic environment. The most successful agents and brokers have crafted strategies and plans to continue driving organic growth in the face of the storm. The most frequently mentioned organic growth strategy is total account development, e.g. asking for the personal lines business of a commercial P&C client, cross-selling employee benefits to an existing commercial P&C client, and upgrading existing coverages. This activity is enhanced by more frequent and personal interaction with current customers. Many agencies are sending thank you post cards/notes with every renewal, visiting clients on a more frequent basis to discuss their business, and revamping to provide exceptional service to existing customers.

Profile

Revenues

Expenses

Profitability

Employee Overview

Keys to Recruiting Talent (Top 5 Listed in Order of Frequency Mentioned)

Producer Info

Staff Service Info

1. Leverage Relationships

Technology

2. Employment and Personality Testing

Insurance Carriers

3. Recruiters

Appendix

4. Internal Referrals

5. Internal Talent Development

In the top agencies the recruitment of sales talent does not differ greatly from the recruitment of service talent. Leveraging relationships is the most common means of identifying potential candidates. While recruiters are still used by many successful agents and brokers, the experience and success with recruiters tends to vary widely. Referrals from current employees are also a great source of new hires. Historically, agents and brokers have preferred to hire people currently in the industry. This position has shifted over the last several years. The most successful agents and brokers now tend to hire from outside of the industry and “train them in our way of doing things”. Many find that the use of employment and personality testing services helps to “give an objective perspective” and “has proven to be dead-on in most cases”. In the most successful firms, training the new talent runs the life of employment. External resources are the

Keys to Organic Growth (Top 5 Listed in Order of Frequency Mentioned) 1. Account Development 2. Leveraging Service Capabilities 3. Producer Accountability 4. Developing Value Added Services 5. Leverage Relationships

Another strategy is the development of value-added services. While this requires an investment by the firm, successful agents and brokers are seeing the returns. One principal stated that “We have created a workers compensation auditing capability and employee benefits compliance department. We do not charge for these, but they are paying for themselves”. Many firms have turned to better management of their production team. As one principal stated, “We are actively focused on sales management and sales pipeline management”.

2010 Best Practices Study

Keys to Developing Talent (Top 5 Listed in Order of Frequency Mentioned)

1. External Training

Agencies with Revenues Between $2,500,000 and $5,000,000

2. Insurance Company Schools

3. In-house Training

4. Mentoring

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5. Professional Designations