2013 Best Practices Study

2013 Best

Practices Study

Agencies

with Revenues

Between

$2,500,000 and

$5,000,000

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

Key Benchmarks

Mgmt. Perspectives

Profile

Revenues

Expenses

Profitability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Developing New Producers

Although most of the leading firms are utilizing

a structured, multi-faceted approach to producer

development, the specific approaches vary

considerably.

The most commonly reported element within these

producer development strategies is “mentoring,”

generally provided by one of the firm’s more

seasoned and successful producers. The roles of the

mentors vary by firm but are typically hands-on and

include active participation such as “going with the

new producer on all sales calls to make sure they are

confident and understand the risks.”

In addition, most emphasize structured training and

education, including in-house training programs,

courses offered by insurance companies, continuing

education programs and seminars/webinars. Third-

party sales coaches and consultants are also utilized.

Although the cost of training can be significant,

several firms emphasized the correlation between

their willingness to invest resources in education

and training and their ability to successfully develop

producers.

Qualifying producer candidates can be a challenge

for even the most successful firms. Some report

success working with recruiters while others

emphasized the importance of being thorough in

qualifying a candidate before an offer is made. This

includes multiple testing, multiple interviews and/or

“requiring candidates to be interviewed by the entire

management team.”

Although these firms are successfully developing

producers, they don’t suggest they have cracked the

code. Most acknowledge their approach is not set in

stone but continually reviewed for improvement. As

one executive stated, for us “producer development

is an established program but also an evolving

program.”

Adjusting to Health Care Reform

Due to the continued uncertainty relative to

healthcare reform many agencies find planning for

their employee benefits business to be a continued

challenge. As a result, one of the most common

responses to the question of current adjustments

pursued in employee benefits was “no change.” Some

added that, because employee benefits represents

a relatively small portion of their total business, they

were comfortable waiting for the dust to settle.

Other firms, however, are taking a more proactive

approach. For these, the primary emphasis is on

communicating with clients and educating them on

their options and requirements under the Affordable

Care Act. As one agency shareholder put it “We

are placing a major focus on education for both

prospects and existing customers in order to become

the resource to help them through the uncertainty.”

Others agree with the potential to distinguish

themselves in the marketplace if they seize the

“opportunity to educate clients and prospects.”

But the ability to serve clients through this time

of change, whether through proactive education

or simply being responsive, places a premium on

internal education. Many of these leading firms

describe actively watching and studying the situation

so as to be responsive to clients and prepared to act

strategically. As expressed by one agency executive,

“Due to the total uncertainty of the situation, we are

attending multiple seminars to ensure we understand

all ramifications of the new law.” Another said simply

“We are studying everything we can find on the

subject.”

Keys to Developing New Producers

(Top 5 Listed in Order of Frequency Mentioned)

1. Mentoring

2. In-house training and oversight

3. Insurance company schools

4. Third-party sales coaches/consultants

5. CIC training

“Producer development is an established program,

but also an evolving program.”