4 / 204
2013 Best
Practices Study
Agencies
with
Revenues
Under
$1,250,000
4
Analysis of Agencies with Revenues Under $1,250,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Developing New Producers
With a NUPP of 3.7% and a producer success rate of
over 75%, agencies in this study group are highly
focused on finding, attracting and developing
producers. In order to accomplish this goal, firms
are relying primarily on training – both internal and
external.
First and foremost, agencies are quick to acknowledge
the value of mentoring. Mentoring comes in different
forms – ride-alongs, time with agency owners, etc.
– but these agencies believe that close coaching
relationships are the most effective way to develop
producers. As one agency executive put it, “I realize
I have to invest in a producer and I look forward to
the process of mentoring a young person in this
business.”
Following the internal coaching and training provided
through a mentor relationship, agencies in this study
group leverage outside training available through
carriers and through sales coaches and sales trainers.
In fact, many of the agencies in this group use both
carrier schools and outside sales consultants to
develop producers. The advantage to this approach,
it seems, is a healthy combination of product training
and education on the sales techniques and strategies
necessary to be successful. “Education needs,” one
firm notes, “are reviewed weekly and training is made
available to address the need.” For this group of
agencies, the key to developing producers may lie in
understanding the producer hired and adapting the
mentoring and training offered to fit that producer’s
need.
Hiring a producer is a relatively rare occurrence
for these agencies – only about a quarter hired a
producer in the past year. Many of these firms have
found hiring in their markets difficult or are gun-shy
from recent hiring failures. Others acknowledge the
time and investment required to develop a producer
and have decided to attempt to acquire producers or
to increase the capacity of existing production staff.
Given the relative infrequency of producer hires – and
the magnitude of the investment for these agencies –
the development of these producers is critical.
Adjusting to Health Care Reform
For many of the firms in this study group, healthcare
reform is not a grave concern. Total life & health
revenues average only about 5% of agency revenue
for these firms, so even a complete loss of life &
health revenue would be only a “flesh wound.” Not
surprisingly, preparing for healthcare reform was a
non-issue for many firms and many others said they
were doing nothing to prepare.
Others, though, are doing what they can to
prepare their business for the evolving health care
environment. The primary responses involve staying
informed, partnering with experienced and savvy
employee benefits brokers and exploring ancillary
products.
Staying informed seems to be the key to figuring out
whether a response is needed and what the response
should be. One agency executive captured the
essence of staying informed: “Our clients are going
to need to be educated about the changes headed
their way. We are attending educational opportunities
ourselves so we can help lower the learning curve for
them.”
Keys to Developing New Producers
(Top 5 Listed in Order of Frequency Mentioned)
1. Mentoring
2. Carrier-provided training
3. Sales-specific training
4. Actively track pipeline and process
5. Promote CSRs to producer rank
“It is a moment of truth for health brokers across America. Some brokers are
not investing the time and effort to be a good consultant.
I see opportunity for brokers who are prepared.”