P R A D

network of people from whom they will solicit leads and the clients they will insure. Education, dress, and life experiences should be consistent with the clients’ expectations of a professional trusted advisor.

The high net worth producer will also have to deal with unique issues including LLC/ownership issues, farm/ranch/hunting lease exposures, property vacancy, EPLI coverage, D&O coverage, international exposures, and others that are not usually associated with main street business. As a result, their knowledge base will need to expand as needed. The desire to learn and be a team player is critical for the firm to be

“We found a sharp young guy that looks the part, great fashion sense, smart, very confident. He had some previous exposure to high net worth clients with a national broker so he knows how to talk about things. He presents well and interacts well with wealth managers who can be intimidating if you don’t know your stuff.”

An Agent in Colorado

able to support the high net worth client.

Regardless of the type of producer model utilized, one critical characteristic or skill a candidate should have is a large personal network and the ability to leverage it. During the interview, ask questions about the producer’s roots in the community – what organizations are they involved in and what role do they play, who do they know and how would they utilize those contacts to produce new business. One owner shared a simple way to confirm the characteristic during the interview. Ask candidates to draft and provide a business plan on how they would develop a book of business – who would they call on, how many leads would they expect to get, how many would they expect to close, what new relationships would they develop, etc.

How and What to Pay Personal Lines Producers?

Success Rate vs. Starting Compensation

Perhaps the most common question we receive regarding personal lines production concerns compensating personal lines producers. At hire, most personal lines producers are paid less than $50,000. However, success rates increase as initial compensation increases. This is not to suggest that paying producers more will automatically increase success. Producers with more

80%

63%

56%

57%

25%

18%

< $50,000 $50,000 - $75,000 > $75,000 Percentage of Producer Hires Success Rate

Source: Supplemental survey

54 Producer Recruiting & Development Study