Agents Must Be A Resource, Not Just A Source Rather than simply supplying insurance, agencies need to greater expertise
When change reshapes an industry, individual businesses tend to fall into three groups: (1) those who embrace change and thrive, (2) those who adapt to change and survive, and (3) those who resist change and fade away.
Consider the commercial insurance industry in the past few years since Sept. 11, 2001. The unexpected events of that day drew attention to risks that previously had been deemed extremely improbable. The new underwriting perspective has affected nearly every commercial insurance client, impacting prem
ium rates, types of exposure, risk analysis, and risk financing strategy across the board. What was a fairly predictable world before 9/11 in terms of underwriting is now viewed as anything but predictable.
When I ask agencies if the industry fundamental has changed since 9/11, they universally say "yes." When I then ask them how their agency has fundamentally changed its own approach to the marketplace, the response is often silenceeven though they acknowledge that their role in the agency business has changed.
In our more uncertain world, it is no longer good enough to be a source of insuranceclients today are looking for a resource of insurance expertise. Some agencies have embraced this change and are thriving; others have adapted and are surviving; and still others are resisting and struggling.
In a simpler world, it would be enough for your agency to be a source of service and coverage. In our changed world, however, you must be a resource of knowledge and expertise. You must consult and guide your clients through new and more complex terrain.
In turn, this affects the relationship between your agents and your agency. Its not realistic to expect one agent to be familiar in detail with all of your products and coverages, and with their application to every clients situation.
Instead, your agents now must make effective use of team knowledge, and there needs to be interaction among various agency team members and the client.
How can your agency accomplish this? How can you retool your operational approach into a team effortfrom initial client contact to providing ongoing, proactive services that meet or exceed your clients expectations?
Its sometimes easier said than done. Current agency structure tends to separate rather than integrate the roles of personnel within an agency. This is the performance challenge facing many agencies today. How do you change from a traditional structure to a team structure to meet the needs of the marketplace and create a competitive advantage for your agency?
The process has to begin with a strong desire to shift from being a source to a resource. What does that really mean?
A source is a provider of something. A resource is a provider of solutions to problems.
A source is called upon when a need arises. A resource is depended upon to anticipate current and future needs.
A source can be shopped and priced. A resource is viewed as a valuable business partner.
Numerous agencies have tried team approaches that did not get the job done for them. In most cases, its because they did not have a systematic plan that they could follow with specific roles and responsibilities. Theres a big difference between developing a team based on "chicken soup for the teams soul" and following a specific, step-by-step approach that provides a way to achieve and measure resultsnot just to keep track of progress, but to keep progress on track. (For tips, see the "Team Approach" sidebar.)
With a clear plan, an agency that previously failed to successfully execute a team service strategy can turn things around. Its akin to getting general diet advice from a friend, but not losing weight until you get the actual diet book and learn and follow the specific regimen for yourself.
How critical is it that your agency focus on team building to become a resource rather than merely a source? Here are some of the indicators you can consider in answering this question:
The problem or situation is too complex for any one person to be able to know or handle all the variables.
The interaction of agency personnel to each other is such that good communication is essential to overall success.
The business requirements of the client require a commitment to the clients goals by numerous agency personnel.
There are no obvious answers that are clearly known by one person. The collective knowledge of the group is needed to ensure success.
The expertise required for successful performance is spread among several key individuals at your agency.
If one or more of these conditions exists, then its time to evaluate your agency in terms of how well you have adapted to the post-9/11 realities of the commercial insurance marketplace. Its time to make sure you have structured your agency to be a resource and not merely a source. Its time to thrive and prosper by embracing change.
Randy Schwantz is president and CEO of The Wedge Group, a sales training and performance consulting firm based near Dallas, Texas. Mr. Schwantz is author of "The Wedge: How to Stop Selling and Start Winning," published by The National Underwriter Company, available at www.NationalUnderwriter.com. For more information, visit www.thewedge.net or call toll-free 1-877-999-9334.
Reproduced from National Underwriter Edition, November 18, 2004. Copyright 2004 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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