Insurance Journal Forums

Do you teach your producers where they should place the business or you have a marketing department that does it?

I just gave mine the option of placing biz anywhere they wanted to.

but do you teach them where to place the business? If yes do you afraid that they will learn everything they need and then leave you?

Sure, I gave them the option, but every company also has certain guidelines and criteria. If a producer's going to leave me, they're going to leave me. I'm not afraid of that.

I think trying to keep your producers deaf, dumb and blind so they will not leave is not a good agency plan. The best agencies in the country invest in education, offer competitive pay and a good work environment. If you are really concerned about keeping star producers, consider an ESOP.

What I really think doesn't matter b/c it depends on your agency and your situation. When I started my agency, I was the show. Now I'm in two states and have two subs under me.

Let me see if I can describe my agency; Since I've started, I've worked out of a home office. I've been selling mostly crop which I do all the paper at the insured's farm. From that perspective, I don't need an office. What I've "hired" is two other ppl that will work the same way. They will also work out of their homes until the book gets big enough to support an office building.

My subs are also on a straight 60/40 split so if they want to work, they can. If they want the day off, it's up to them. I'm not the type of agent who wants a supervisor over my shoulder 24/7. I'm trying to not watch over them as much as possible. I handle the marketing costs (pens, postcards), we split farm shows and county fairs, and I let them know about continuing ed/trade show classes. If I were to have agents under me on a salary/commission structure, I'm sure it would be very different. However, that's how we do things here.

I've also done a lot of hunting for these subs as well. I do NOT post classifieds or take resumes. What I look for is personality and desire. Background is a part of it, but I want an agent who can look down the road and see a future, not a paycheck.

I think if my boss tried to keep me in the dark, I'd find another job.

I Agree with Independent Guy. Alll producers should become familiar with what their carriers want to write. Their success depends on it. If an agency keeps producers in the dark about the marketplace and such they will undoubtedly fail, or go to a competitor. We encourage producers to meet with our top carriers/underwriters at least once/year. In addition, we invite underwriters to attend our quarterly sales meetings. This helps absorb the meeting costs, and the producers appreciate learning more about what the carriers want to write.

Alright, time to get defensive...

The producers I've hired are going to be working only crop insurance; one price, one product, regardless of company. This is a federal program, so there is no difference between competitors aside from commissions and adjusters of which they have total disclosure from me. What I HAVE told my agents, is that they should put the biz where they feel comfortable. Other than that, I have no secrets and will not keep my agents "in the dark".

If anyone else wants to attack my ownership style, learn about crop insurance and then we'll talk.

Ok, so you're a really specialized agency. I don't think anyone was attacking you and since the original question didn't pertain to you - you shouldn't take offense. I share everything with my producers. The more they know about the company or program requirements the easier it is for me and better for my E&O. Producers come and go in this business and their book may or may not stay with the agency. Compensate them fairly and give them a chance to buy their book if they leave. I have 5 producers who all work off site, commission only. They share knowledge and accounts with each other, back each other up for vacations, emergencies,etc.... oh by the way did I mention that they're all female.

If your producers can not figure out where to get coverage placed you should replace them. Smart producers can figure out how/where to place coverage, and would wonder why the owner(s) want to keep them in the dark. Alan.

OK Thank you very much everybody for the input!!!