83 / 148
Analysis of Agencies with Revenues
Between $2,500,000 and $5,000,000
E
FFECTIVE
P
ROCEDURES
/P
ROCESSES
“After we standardized our procedures,
we got a much better understanding of
the bottlenecks. We were able to free up
some highly paid people by simply
taking a few processing items from
them.”
“After our computer conversion, we
decided to make the most of the system.
That forced us to thoughtfully plan
what data we really wanted to capture
and how. It was painful for the first few
months. Now, our staff can’t believe
what we used to do.”
Many of the leading agencies have learned the problems associated
with having people process business differently. While new
automation purchases have forced some standardization in
business processing, creating processing standards remains a
challenge. However, when compared against the costs of not
actively addressing these issues, standardization is an obvious area
of focus. Many have turned to resources provided by their agency
management system user groups, outside consultants, or industry
organizations for help in developing and implementing such
standards. Others have established employee teams to develop
them. The key is making sure they are adhered to.
The prevention of E&O exposure, productivity losses, and poor
follow-through is good reason to standardize workflow and
procedures. Many firms have used the process of “reengineering”
to develop formal service standards, checklists and methods to
evaluate the abilities of the staff. This leads to better customer
service, better retention, and in the end a better agency.
C
ARRIER
R
ELATIONSHIPS
“Loyalty used to be defined as the last
accommodation on an account. We are
increasingly aware of the pressures on the
companies, and we need to change the
way we do business if we expect to
compete.”
“Our companies are as important as our
clients. The latter is who we serve. The
former is what we serve.”
“Give me an experienced underwriter with
a desire to write profitable business, and I
will be unstoppable.”
In the changes that are currently taking place in the market, most
agencies cite close carrier relations as central to their future
success. In light of the fact that many carriers are losing faith in the
agency system to deliver an increased flow of quality business, the
leading agencies are clearly striving to overcome that perception
and build strong relationships. The “carrier of choice” for agencies
varies greatly, but is often based on the personal relationships that
have grown between agents and carriers. And agents are
increasingly more dependent on their lead carriers. As a result they
are concerned about their ability to feed a number of companies a
sufficient quantity of new business and to focus in the sales area.
Some of the practices used to maintain and build company
relationships are open communications, a willingness to put
themselves in the company’s shoes, complete and accurate
submissions, and adherence to the company’s underwriting
guidelines.
83