Tried and true: today's environment generally features yesterday's challenges. (Property/Casualty: Selling Insight).In personal lines, success comes from the relentless execution of tried and true practices. Today's insurance industry has challenges, some new and some old. While Sept. 11 caused the first overall industry loss in 2001, familiar challenges are predominantly featured in this cycle's plot, from rising loss costs to repopulation repopulation 1. introduction of new animals to a farm or part of it after it has been depopulated for health or production reasons. 2. the additional growth of normal cells around a tumor that is being destroyed by irradiation. of assigned risk plans An insurance plan created and imposed by state statute under which persons who normally would be denied insurance coverage as bad risks are permitted to purchase insurance from a pool of insurers who must offer coverage to such individuals. to a shortage of underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. talent. We see some uniqueness in this cycle. For example, it's clear that weak companies cannot survive. Tick through the roster of top-tier companies; some familiar names no longer exist. But today's environment generally features yesterday's challenges. With 29 years and several market cycles behind me, I've read advice on how to operate in this cycle. The best advice comes from the "Book of Experience." Many independent agents also know the story of this market and how to respond. Agents don't need to focus on proving their value. Competing distribution systems can't match the local advice, advocacy and choice that independent agents can offer. It's time It's Time was a successful political campaign run by the Australian Labor Party (ALP) under Gough Whitlam at the 1972 election in Australia. Campaigning on the perceived need for change after 23 years of conservative (Liberal Party of Australia) government, Labor put forward a to regain market share! To prosper, independent agents must find company partners with proven strategies to help agents grow. Many carriers offer marketing, service and automation tools to help agents grow their businesses, but agents must consider not just marketing, but also a carrier's capacity and financial strength. If they can't vouch for vouch for verb 1. guarantee, back, certify, answer for, swear to, stick up for (informal) stand witness, give assurance of, asseverate, go bail for verb 2. the carrier's long-term stability The long-term stability of an oscillator, the degree of uniformity of frequency over time, when the frequency is measured under identical environmental conditions, such as supply voltage, load, and temperature. and financial strength, how can they recommend such carriers to their customers? The late Alabama football Coach Paul "Bear" Bryant's advice to his players applies to all of us: "Be good, or be gone." How can agents and companies work together to "be good" and grow business and profits in this environment? We all know what to do--the challenge is to do it. At Travelers, we call it "Relentless Execution of the Obvious"--or REO reo Noun NZ a language [Maori] . By consistently applying proven techniques, independent agents can grow their market share despite the potential obstacles. Give this some thought: Does your agency relentlessly execute these selling fundamentals? * A systematic marketing process in which you invest talent and money? For example, do you ask for a referral from every satisfied customer? * Distinguishing customer service--such as advice about personal asset protection--from policy administration, such as changing an address, and claim administration to help identify ways to improve workflows? By differentiating among these functions, agencies can identify ways to reduce the time spent on policy administration. * Seeing that your customer service representatives have the time, tools, and training to sell? Do they recognize every phone call as an opportunity to increase commission and customer satisfaction? * Communicating with your customers on a regular basis? Simple marketing programs, such as retention-focused direct mail campaigns, can be very effective. * Offering direct payment services, such as payroll deduction or electronic funds transfer See EFT. (application, communications) electronic funds transfer - (EFT, EFTS, - system) Transfer of money initiated through electronic terminal, automated teller machine, computer, telephone, or magnetic tape. ? Such services reduce the amount of time your agency spends administering premium payments, while increasing customer retention. * Rounding every account with additional coverages and products? For example, for homeowners policies, do you suggest coverage for valuable items? Do you offer additional coverages such as boat insurance and flood insurance Flood insurance denotes the specific insurance coverage against property loss from flooding. To determine risk factors for specific properties, insurers will often refer to topographical maps that denote lowlands and floodplains that are susceptible to flooding. ? To build profit and market share, agencies also should leverage the marketing, service and automation tools that carriers offer. Many carriers offer strong automation platforms accessible through agency management systems or Web sites that help agencies streamline policy processing tasks such as issuing new policies, making policy changes, and fielding billing inquiries. Carriers also may offer administration centers that enable agencies to offload To remove work from one computer and do it on another. See cooperative processing. routine processing tasks such as billing information and processing policy changes. Additionally, carrier marketing programs provide opportunities to enhance agency profitability. By maximizing carrier resources, agencies can succeed in any market cycle. You've probably heard it--or read it--all before. That's because it works. Use "REO" in your agency. It will create a happy ending in your own "Book of Experience." Clyde Fitch Clyde Fitch (May 2 1865 - September 4 1909) was an American dramatist. Born William Clyde Fitch at Elmira, New York, he wrote over 60 plays, 36 of them original, which varied from social comedies and farces to melodrama and historical dramas. is president of agency operations for Travelers Personal Lines. He can be reached at insight@bestreview.com. |
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