WOODBRIDGE, N.J.—To grow and improve revenue, producers cannot depend on renewals and price changes in the insurance marketplace, but rather must proactively recruit the best sales force and pursue business, the president of agency-consulting firm Marsh, Berry & Co. Inc. says.

John M. Wepler, speaking before the American Association of Managing General Agents here, says typically a hard market will last two-to-three years, followed by prolonged soft-market conditions. While rate increases today are gradually taking root, Wepler says, “This industry has done nothing to drive predictable organic growth.”

The question for an agent, he says: Will he or she be a shepherd or a producer? The shepherd rests on the strength of renewals and makes no effort to expand the book, he explains, while a producer has a strategy for growth, hiring agents and growing outside of the hard-market cycle.

“If you want to grow your business, you need to hire salespeople,” says Wepler.

But finding sales talent can be a challenge, and Wepler says turning to experienced insurance producers is not necessarily the answer. He held disdain for what he calls “jumpers”—those whose motive is solely to optimize their own income before jumping to another agency.

Among the best candidates to consider, according to Wepler, are former business owners, entrepreneurs hungry for growth and ex-military because of their loyalty, work ethic, and willingness to work long hours.

Unless they have been through an insurance intern program, college graduates are the least desirable because they lack the experience, he says.

A successful sales development program needs to include a mentor to guide the recruit. The recruit should initially receive a salary that transitions to commission over a period of months, says Wepler. At the end of that salary period, it's time for the recruit to sink or swim: no production—no paycheck.

As important as recruiting a sales for is managing it, Wepler notes, and a CEO that cannot do this needs to hire a sales manager. He says a Marsh Berry analysis shows that agencies with a full-time sales manager produce more revenue. A successful agency with more than $50 million in sales revenue averages between four to five sales managers, Wepler says.

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Agents Must Develop Sales Teams to Grow, but Who to Hire?

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