2013 Best Practices Study

Analysis of Agencies with Revenues Over $25,000,000

Key Benchmarks Mgmt. Perspectives Profile Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Developing New Producers From all of the research we have done on sales success, the “Producer Development” items listed by the Best Practices Agencies would be considered a great checklist for any firm to use in order to maximize the success of their sales staff. It would be difficult to argue with any of them. As far as the source for producer talent, two of the most common hiring sources mentioned were hiring college graduates (ideally through an intern program) or finding older prospects that have already had some sales experience but in other industries. They reported success coming from both hiring strategies. To get more information on how to do this successfully, we would recommend that you look at Reagan Consulting’s Young Producer Study. (Download for free at www.reaganconsulting.com.) Finally, these Best Practices agencies reference a “purging” strategy that many firms use to keep their senior producers selling (i.ee., get rid of their smaller accounts) and to help their junior producers get experience and build up a book of business. “We need to have the principals of our firm working as hard at identifying and recruiting producers as we work at writing new business. Hiring a talented producer (that will write new accounts for years) has a lot more value than writing a single new account.”

Keys to Developing New Producers (Top 5 Listed in Order of Frequency Mentioned) 1. Investing in mentoring – generally senior producers with junior producers 2. Creating a “learning path” for new producers (teach them an effective process) 3. Providing sales management for all producers 4. Focusing each producer in one or more industry practice groups 5. Expectations/Goals are being clearly established (with accountability being provided as well)

Adjusting to Health Care Reform The responses from these Best Practices agencies certainly confirm that, although a good bit of uncertainty about healthcare reform still exist, a lot that can and is being done to position the agencies for success. Positioning involves adding and expanding capabilities. This includes “staffing up”; adding services such as expanded wellness offerings, self- funding capabilities, ancillary products and voluntary benefits; and getting their people up to speed through education and training. It is also clear that agencies are going to have to train and equip their producers to sell these expanded services and to be much more consultative in their sales approach since clients will need training and educational offerings as well. With all of these changes taking place, it is little wonder that these firms are also finding it necessary to elevate and improve operating efficiencies in order to maintain profit margins.

2013 Best Practices Study

Agencies with Revenues Over $25,000,000

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