Recognize the Diamonds in Your Own Backyard

Acres of Diamonds,” by Russell H. Conwell, is a story with an ageless moral of a man who dreamed of finding riches and fruitlessly traveled the world for decades in search of a diamond mine. Exhausted, tired, broke and discouraged, he returned home only to discover that the diamonds he sought were right under his nose—at the farm he had sold and left behind.

“Diamonds,” in the form of skilled insurance producers who can attract and retain profitable accounts, are in high demand today in hopes that they will bring riches to insurance agencies and in turn to the companies they represent. Profitable accounts help attract and keep top companies. Top companies help agencies attract and retain top accounts. And so the cycle of success goes on.

A key component driving a high-performance agency is a trained producer who can obtain and keep business on a basis other than price.

Successful producers help guarantee agency perpetuation. The Agency Universe Study conducted by Independent Insurance Agents and Brokers of America found that 71 percent of new agency principals were former non-principal producers; 68 percent of this group came from the same agency. Only three percent came from outside agencies.

Where do you find, and how do you hire, train and develop a top producer, especially a commercial lines producer? The answer may be in your own backyard. That “diamond” sought after so diligently, by so many, in so many places, may in fact be in your agency, only waiting to be discovered, polished, and developed into a sparkling gem. We are talking about a special category of commercial lines customer service representatives who are moving into the multi-faceted role of account representative, producer and service technician.

What do we know about these “diamonds in the rough?” Here are some interesting statistics from “The CSR Profile,” published by The Academy of Producer Insurance Studies. Ninety-nine percent of agency CSRs who responded to the survey are female. The average age is 44 years old, but 33 percent are in the 30-39 year-old range and average 17 years of insurance experience. On average, CSRs have been with their employer for at least 10 years. They are loyal. Ten percent of the CSRs in the study have earned at least one industry award and 97 percent are licensed.

The National Alliance School for Producer Development, in conducting 12 Producer Schools in the last four years, found that some of the 600 new producers graduating from its three-week schools are top commercial lines CSRs. They are in the process of moving into a hybrid role of CSR/account representative/producer. A specialized person like this allows traditional commercial lines producers to focus on new accounts.

Following are a few suggestions shared by agencies with experience in developing commercial lines CSRs into multi-purpose producer/account representatives:

• Identify a successful CSR who is not afraid of the word SALES. A sales/servicing role is not for everyone.
• Test the applicant for sales aptitude using a tool such as Omnia Profile to determine sales potential.
• Invest in specialized and ongoing sales training to get everyone on the same page so their efforts complement each other.
• Implement a performance-based bonus arrangement that will fairly compensate the CSR/producer for new sales. Review this plan annually, at least.
• Include the CSR in the regular sales meetings and make this person a respected part of the sales team.
• Establish realistic goals and track performance. New business production will be only a portion of the goals. Other components might be a comprehensive annual review of all assigned clients, and relationship-building with key persons involved with the account on the company and client side. The main idea is to develop realistic goals that add value to the client, agency and carrier.

The cost and risk involved for an agency in developing a CSR into a hybrid producer is generally much less than the risk of hiring and training a brand new inexperienced person and developing them into a producer. The key is finding the right mix of desire, skills and competencies to create a win-win for all concerned.

Take a new look at your dedicated staff. Should you cultivate the ground you are standing on rather than setting off for greener pastures? Is there a “diamond” right under your nose who should be developed? Good luck with your prospecting.

Jack Frick, (jfrick@scic.com) is vice president for business development at The National Alliance for Insurance Education & Research, based in Austin, Texas.

Topics Agencies Training Development