Agents Can Make Hard Market Easier

Recent headlines in the National Underwriter confirm what agents, insurance companies and policyholders know by now–the business is changing.

“Risk Managers See Hard Market For Next Two Years” was the headline on page 1 of the May 7 edition.

“Prices Keep Rising, Broker Survey Finds” was the page 1 headline the following week, May 14.

“Market Hardening In A Hurry” reported NU in its July 30 edition.

While most of the reports address the hard market issues in relation to pricing and capacity, the challenges that sales people face today are much more involved than that.

Insurance markets are disappearing, the world economy is slowing down, client customer service expectations are rising, and there is a shortage of knowledgeable industry professionals to deal with these market conditions.

It is easy for producers to become overwhelmed with all that is happening, and for good reason. There is a lot to learn, to do, and to keep track of.

However, producers who work hard now with their clients and companies will benefit in the years to come. Here are a few tips to thrive in this hard market.

Get help when you need it:

Successful salespeople know when to ask for assistance. Do not think its a sign of weakness to bring in reinforcements. It demonstrates a good analysis of the situation and the courage to put your own ego aside in order to win.

To explain a difficult account situation to your client, a co-worker or company representative can help give details about complex coverage issues, loss control management strategies, claim reduction programs (such as employee return-to-work programs), or add credibility.

Make joint client visits productive and professional:

Always let your client know whom you will be bringing along and why. This ensures there is adequate meeting space and gives your client the chance to invite the appropriate people from their firm.

Prepare an agenda for the meeting. In it, decide who will cover what subjects and answer questions, and who will handle the closing of the sale.

This may seem obvious, but if these topics are not addressed prior to the meeting, you might look disorganized, and worse yet, embarrass yourself and diminish your credibility in the eyes of your client.

Have presentation materials for all attendees and suitable visual aids.

Never disagree with your colleagues in front of your client. Disagreements must be handled outside of the meeting and the individual in charge of a topic must make any corrections. Anything else is unprofessional.

Cultivate company and wholesaler relationships:

The market is literally flooded with submission activity. If you were an underwriter, which submission would you choose to work on? The choice would be the account that can most easily be worked on for a positive result.

To ensure positive results from the underwriter, supply all the necessary information to do the job. Keep underwriters abreast of changes to the risk and your status with the client or prospect, and relay knowledge you have about the account or industry-related issues to them.

Don't put your company or wholesale relationships in jeopardy by withholding information. Once trust dissolves, it may be irreparable. Bad press travels fast and will put you out of business.

Maintaining strong interpersonal relationships is at the core of developing the trust relationship needed between agents and their markets. People want to do business with those who have their best interest at heart.

Help clients lower their costs:

Good insurance salespeople know that our business is not just about selling policies, collecting premiums, and paying claims. Our business is advising our clients on the best way to manage their risk to lower their overall costs.

To accomplish this, learn risk management techniques to be able to offer valuable advice to clients. Work in partnership with human resource, loss control, or claims handling specialists to advise clients on ways to lower costs and improve operations.

Use a cost-benefit analysis sheet to help your clients analyze the expense of risk management implementation and the return on their investment.

While todays market is a challenging one for clients, companies, agents and brokers, this is an opportunity for our profession to shine. We are in a position to restore trust among all the parties, improve workplace conditions for clients, and develop the professionalism of our people. If we all do our part, the insurance industry will continue to be a great place for us to make a difference.

Emily Huling is president of Selling Strategies, Inc. Her latest book is “Selling In A Hard Market.” For more information on her consulting services and books, go to www.sellingstrategies.com.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, September 17, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.

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