36 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
36
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Developing New Producers
Many agencies in this group have focused their
recruiting and hiring efforts on production talent with
little to no insurance experience. Typically, this is
someone right out of college, or a person with sales
experience but in a different industry. As a result,
basic insurance knowledge is needed. To facilitate
this learning, many of the agents have turned to
insurance company producer schools, although a few
have established their own internal training programs.
Professional designations programs are almost always
utilized as well because of the training and continuing
professional development required to obtain and
maintain the designation.
Sales training solutions are achieved in a number
of ways. In addition to training programs offered by
carriers, industry associations and vendors, some
have found an external sales coach to be “invaluable”.
Others have taken a less formal approach by
having new producers attend sales calls with more
experienced producers. Sales meetings are also used
to do role playing and to practice sales approaches.
While insurance and sales training are cited as
important steps in producer development, most
agents in this group listed ongoing mentoring,
monitoring and measuring as having the greatest
impact on the success of their new producers. They
work with their producers, especially new producers,
to establish targets and goals, and some also provide
producers with appointments. Actively managing the
producer’s pipeline activity (i.e., prospecting activity)
and having regular sales accountability meeting is
cited as critically important. Surprisingly, formal and
informal mentoring programs to develop young
producers have become part of culture for many in
this study group.
Adjusting to Health Care Reform
Due to the uncertainty that still surrounds the Patient
Protection and Affordable Care Act (PPACA), the
adjustments being made by Best Practices Agencies
typically fall into three camps: 1) no action being
taken, 2) actively staying abreast of situation and
making marginal changes and 3) view PPACA as a
tremendous opportunity and actively preparing to
seize the opportunity.
The majority of agents in this group are doing
nothing. They feel they understand the business
risks and have either stopped pursuing the business
to focus on developing other lines of business or are
continuing as is. Others are not sure the PPACA will
ever be fully implemented and are maintaining their
existing book but taking a “wait and see approach”
until some of the uncertainty is resolved .
At the other end of the spectrum are several agencies
that see PPACA as an opportunity and driving
factor in their agencies’ future growth. They are
investing more time, money and energy into their
employee benefits practice than ever before. The
belief that customers will need the assistance of a
qualified professional to help them navigate the
waters of healthcare reform law is driving additional
investments in education, training, technology and
value added service within their benefits department.
(See Value Added Services, pg. 43)
Keys to Developing New Producers
(Top 5 Listed in Order of Frequency Mentioned)
1. Internal and External Training
2. Active Management of Activity and
Pipeline
3. Mentoring
4. Lead Assistance
5. Setting Goals and Holding Accountable
“We immerse them in the agency and ensure that they have a solid
understanding of both the agency’s operations and the world of
insurance.”