Agents Who Don't Make Recommendations

[kevinraz]

I'm an underwriter for a national carrier. I seem to be hearing more of "we don't recommend a carrier to our customers, just show them all the options and let them choose". It seems that their only job is to be the conduit for the insured to be able to access markets.

Have heard this from major brokers and medium sized shops as well.

I don't like this for several reasons - first, an agent is supposed to provide advice, right? Second, it would 99.999% of the time come down to who is cheaper. Third, all carriers are not the same, all policies are not the same.

Can anyone tell me why this is becoming more prevalent? Are there too many E&O claims out there? What's the use of having an agent if they can't give you a recommendation that one carrier might be better than another for their coverage?

[wlunday]

Kevinraz...

First, a company's marketing reps are doing a poor job if they don't give me a reason to recommend them!

These reps should talk "due dilligence" with the agencies, prove that there are no worries about making a sound recommendation, and the agent WILL suggest a carrier of choice!

Too many carriers rely on the internet to market to me and loose sight of the big picture... relationship building. I'm not just an electronic target, I need a knowledgable rep to come in and train my staff and show me why I should use their products instead of the cheapest one...

Swymmer

[Elizabeth B]

Kevin,

Are you suggesting that Agents are useless? This is a topic for an entirely separate discussion. I suggest that if you're business comes from agents, you refrain from rude comments.

To answer your question:
In most agencies today, all carriers are represented in our proposals equally and original quotes are attached to the proposal. Transparency is very prevalent within our agency. AM Best Ratings, coverage and premium numbers are the only differentials within the proposal. Most Agents will suggest a choice carrier (good AM Best Rating and Loss Control services). If you've had an experience with an Agent or Agency who you feel did not represent your quote fairly, I suggest you contact their state insurance department and file a formal complaint.

[kevinraz]

Elizabeth, I am not implying in any way that agents are useless. I spent 9 years on the agency force before I switched to the dark side. Nothing rude intended.

I'm just wondering why more agents are being so cautious in recommending who an insured should place their coverage with. When I was an agent (until 2002) I would obtain quotes from carriers and usually one or two were better than the rest - coverage differences specific to my clients exposures, carrier services available, etc. I'd make recommendations based on their needs and my knowledge.

[Elizabeth B]

Good agents know that a recommendation is necessary and should have it's own page in the proposal.

This brings us back to Transparency...in addition to our commission, we must supply the consumer with the original carrier quote.

While we cannot predict the future of an insurance co's solvency, if I should recommend an insurance co to my client and the company goes under, who's insurance do you think will be paying for any claims that arise while I'm scrambling to find another carrier? Mine, unless all of the proper disclaimers are in place to protect my "recommendation".

[LadyBroker]

In addition to offering the carrier's quote in it's full form, I always attach a copy of the specimen policy, and any proprietary carrier endorsements. The quote sometimes doesn't give the full information, and I think my retailers should know if a quote gives them Defense inside or outside, or offers the CG2010 11/85 versus the CG2010 07/04...that sort of thing.

It is a product of the times, though, that it is becoming harder to give recommendations, as if something does go sideways with the carrier, then the client looks to blame his agent, and that's not always fair. It's out of our control if a carrier's Best rating goes south in a hurry, or if the claims handling is poor.

[independent guy]

I can understand why some scared little agents wouldn't want to offer a recommendation, but to me not offering the recommendation is like being afraid to do your job. If your companies are all about the same in terms of cost and service, then I can understand letting them pick. But otherwise...

[Rob]

I provide the options and if in fact there is a coverage benefit, all else being equal (A.M. Best rating), I will make a recommendation. In some cases its not clear cut as one policy will have some advantages as well as disadvantages and another policy will have some disadvantages as well as advantages. In a case like that, it becomes more difficult to make a clear cut recommendation. In the absence of a situation like this, however, like I said, I have no problem making a recommendation.

[njexpat]

Lighten up ElizabethB - NO - he neither suggested nor implied that agents are useless! He offered an observation and a question, and you inferred a slight that suggests you may have issues with underwriters. Please note the use of the word MAY ; what you DO have an issue with is the proper use of contractions (you're , it's"¦)

kevinraz "" your company should have an agency management strategy to deal with producers who insist on being totally benign in providing coverage offers. As a former agent, you should recall that it is challenging to fully articulate the nuances between many different coverage offers, and that many consumers are not real inclined to sort through them all. Knowing this, you should provide your agents who are challenged by this task with guidance on how your offer is different / better.

To those whose (not who's, ElizabethB) idea it is to differentiate offers by providing AMB ratings: is doing that a whole lot different than asking the consumer to pick "˜em based on costs? Is A++ that much better than A+ or A?? C'mon.

We as an industry "" u/w and producers alike "" need to become better at providing consumers with quality insights and eal guidance to help them make better informed buying decisions. Responding to important questions like the one kevinraz has asked with thoughtful responses can help us all learn from one another.

[Big Dog]

With all of the crap that came down via the Spitz a few years ago, a lot of agents have been scared off of recommending one carrier or program over another. So, you can thank ol' Elliott Spitzer for part of it.

You're also correct that many agents can only sell price - they have no clue as to how to compare coverages or present the advantages and/or disadvantages of one carrier's coverage vs. another.

Cheap isn't always good. Would you have bought a Yugo?

When I was an underwriter, one of the things we did was to monitor our agent's production - how many submissions they sent in, how many we declined and for what reason, how many we quoted, and who the winning carrier was (and why) if we didn't write it.

This provided a great deal of detail in determining which agencies were simply wasting our time and which ones to continue doing business with.

Side note - based on ElizabethB's response, I'd bet she works for one of the big brokers - most likely Aon.

[Elizabeth B]

Thanks for the lesson in grammer njexpat! I found your post brazen, disreputable and repetative to the information contained in my post.

Agents today have to be more than salespeople. We are also sometimes risk managers, Lawyers, counselors and financial advisors.

It is our responsibility to provide a recommendation, but we must protect ourselves in the process.

[njexpat]

Lizzy B - you are (you're) welcome for the GRAMMAR lesson. While I may accept the charge of being brazen, the label "repetative" eludes me --- sorry.

We all thank you for the groundbreaking concept of agents serving as more than just as salespeople. (there may be a book deal in it for you to detail such a novel approach) I must confess, however, that unlike you I do not assist my clients in either a legal or financial advisory capacity.....

You may consider also providing this wisdom in defining your role to your E&O carrier. "Agents today have to be more than salespeople. We are also sometimes risk managers, Lawyers, counselors and financial advisors." WOW - what a bargain!

Glib (do look this up, Lizzy) and unproductive posts such as yours require a strong reaction from someone, if for no other reason than to discourage future such posts. This will be my last post on this topic; if you mind your manners on future posts and offer anything that is meaningful, I will spare you future "grammer" lessons. xox