2013 Best Practices Study

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.

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

While insurance and sales training are cited as important steps in producer development, most agents in this group listed ongoing mentoring,

2013 Best Practices Study

“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.”

Agencies with Revenues Between $1,250,000 and $2,500,000

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