Carrier Classes Help Agents Climb The Ladder Of Success

Carrier Classes Help Agents Climb The Ladder Of Success

General Casualty puts 1,500 producers, CSRs annually through education programs

No matter how big or small an agency happens to be, education is a vital component to its continued growth, both in terms of personal and professional advancement as well as in hiring new blood to bolster the firm's ranks.

One regional insurance carrier has engaged this need by offering the educational foundation for insurance producers and support staff, along with materials to help agency owners understand the costs of growing their sales force (see sidebar, “Agencies Overcoming Hiring Woes”).

For the past 40 years, General Casualty Insurance Companies–a regional insurer based in Sun Prairie, Wis.–has used its own resources to sponsor in-house educational programs for independent agencies.

The company, founded in 1925, operates in 25 states and reported direct written premium of $1.2 billion in 2004–largely from commercial insurance. It is a member of Winterthur U.S. Holdings Inc., an affiliate of Swiss-based Winterthur Insurance Group, which is part of Credit Suisse Group.

The current head of the program–Kurt Knauff, agent education program manager–said the program has been consistent over the years, benefiting thousands of agents and customer service representatives who go through its educational doors each year.

“The thought process is that we offer this as a value-added service to our agent partners. Some of the courses are needed for license renewals. The agents win by complying with continuing education requirements,” said Mr. Knauff.

“For us, it creates a lot of goodwill, and agencies find this to be very valuable because they get something that they can apply to their job immediately,” he added. “One hope we have is that we will see more business from them.”

The educational offering is a very comprehensive program, explained Mr. Knauff, ranging from classes in the basics of insurance for novice producers and customer service representatives to advanced courses for the more experienced agents and support staff on forms and coverage.

“We are constantly keeping up-to-speed on current issues,” he pointed out.

The company's commitment to education goes beyond the class offerings. The carrier does not charge agencies to attend the four home office sessions it offers, or the 20 one-day field sessions offered throughout its operating region. General Casualty also picks up the tab for the student's hotel stays and meals. Mr. Knauff added that the program ushers an average of about 1,500 producers and support staff a year through its doors.

The company also sponsors a sales training course with an independent instructional service. Agents pay a discount rate for this program–but again, General Casualty picks up the tab for hotel and meals.

“It is very valuable to learn just how to get the foot in the door to meet with clients. We've gotten nothing but a tremendous response from our agency partners on the course,” noted Mr. Knauff.

“The agencies appreciate our willingness to put on the classes,” he added. “Fewer companies are willing to invest in continuing education for agents. If the agents go outside to get this continued education on their own, it costs them a lot of money. It is a significant savings to them for us to provide this service. Our education program is on par or exceeds what they would get from any CE provider.”

One appreciative agency is Mortenson, Matzelle & Meldrum Inc., an independent agency based in Madison, Wis.

“We are in growth mode,” said Michael Moore, the agency's executive vice president of property-casualty. “We added a lot of people this year and last year,” he said.

The agency has more than 150 employees in five locations. It deals largely in commercial accounts, placing more than $300 million in premium each year.

The benefit of having General Casualty offer these educational programs is that Mortenson, Matzelle & Meldrum knows it can hire individuals with little or no experience in the insurance industry and have a place to turn to teach them the basics.

“We have the confidence to know we can turn somewhere to get training,” explained Mr. Moore. “It has allowed us to broaden our scope of who we can hire. If we did not have this program, we would be forced to hire people with experience, or make a significant investment in sending them somewhere else for training.”

The agency sent 35 people through the General Casualty program last year. The technical knowledge that the students came away with gave them a “jump start” in the industry, observed Mr. Moore.

“It's not all they need to know, but it gives them a base line to work from and move up the ladder,” he noted.

Mr. Moore also noted that the financial investment General Casualty makes in education allows his agency to invest its money into growing the business and improving customer service. He added that as important as that is to an agency as large as his, it can be invaluable for a small agency with far fewer resources.

Bob Marshall is a member-owner of Mid-Alliance Insurance in Lincoln, Neb., a small agency of five producers and six salaried employees. For his agency, the cost of education is less of an issue than the need to round out his and his employee's knowledge of the business. Being a small agency, everyone is cross-trained–even the receptionist has an agent's license.

“Education is extremely important,” said Mr. Marshall. “One thing that is happening out there is that the service representative's role is changing dramatically. It used to be just data entry. Now, technology has allowed them to do more in the area of sales and products. To be proficient, they need as much training as I do.”

He noted that a benefit of the courses offered by General Casualty is that producers get a different perspective on the issues facing agencies.

What independent educational services talk about “does not necessarily coincide with what the company says,” Mr. Marshall explained. “The educators say you need to do this and this, and the company says it's not going to happen. That is the most important thing–the company education vehicle lets you see two sides of the fence.”

There is another advantage to having an educated staff, he noted. “We do not just look at continuing education for the sake of continuing education. We want our people to talk intelligently with customers and companies. Each hour of continuing education helps us avoid an errors and omissions claim. The more education our people have, the better it is for our clients and it protects our backside.”

From a career perspective, generally speaking, education reinforces the ability of the agency to follow any path it needs to. He noted that he and the other member-owner, Tom Powell, in addition to having their agent's licenses, have broker and consulting licenses as well.

“We just try to be safe,” noted Mr. Marshall. “I'm 61 years old and I'm still taking tests.”

Knauff mug and teaching class photos in Hoboken–PNC 7-4-05 folder. Too big to e-mail.

“For us, it creates a lot of goodwill, and agencies find this to be very valuable because they get something that they can apply to their job immediately. One hope we have is that we will see more business from them.”

Kurt Knauff

Agent Education Program Manager

General Casualty Insurance

Caption for pix of class:

General Casualty's program is comprehensive, with classes ranging from the basics of insurance for novice producers and CSRs to advanced courses for the more experienced staff on forms and coverage.

Caption for art of happy grads climbing a ladder:

Continuing education helps producers and CSRs hone sales skills and expand coverage know-how so they can grow their business and advance in the agency.