Agency Education Is Up To You

Bev Butler, director of training with the retail brokerage division at Arthur J. Gallagher & Co. agrees: "You can never sit back on your laurels. Education is for everyone–for those young professionals who are just starting out to those seasoned professionals who need to keep up with industry changes."

One of the primary benefits of education, especially when training new agents, is helping the agency avoid errors and omissions. "Even with experienced professionals there is a need to learn the new laws, regulations and policy addendums as well as new exceptions and exclusions," she said.

Butler added that education initiatives should begin with the organization leaders and can help boost morale and improve job satisfaction. "It rejuvenates interest and excitement as to why they are in the profession in the first place, especially for those who entered the profession a while ago," she said. "Additionally, for newer professionals, as they grow in their careers, education can help determine if they want to take different paths and become
more specialized."

Growing pains

Agents need to continuously improve their techniques while enhancing their technical knowledge about products and developing their careers through education, said Ric Mazon, vice president of partner services with Assurex Global, a network of more than 500 independent insurance brokers on six continents. "It is a fundamental piece of an agency that is committed to organic growth."

Mazon said "quality agencies" are seeing this time of economic downturn as a way to strengthen the abilities of their core agents and, if they want to grow into new areas or specializations, they are using this time to invest in their people and offering them the appropriate training.

A well-educated agency is a valuable agency and may attract suitors through acquisitions, he said. First Research in Austin reported that consolidation is continuing among agencies, a trend that mirrors what Mazon is seeing in the industry.

"With acquisitions, there is less value in an agency if there are gaps in the knowledge and skills of its people," Mazon said. "Conversely, the value of agency is in its people–the expertise of its agents in helping to maintain a quality of culture, is what makes it worth more in the marketplace."

If you are an agency owner, training your agents may seem like an extra expense, but it is really an investment in the success and value of your business.

Another way to grow the agency is by adding new talent. The U.S. Dept. of Labor stated that employment as an insurance producer is expected to grow by 7 percent to 13 percent through 2018. So it becomes important for agency management to cultivate that new talent entering the industry.

Mazon pointed out that the graying of the industry is on everyone's mind. One way to combat the retirement of existing agents is to bring in new, younger talent and train them early in their careers. He recommended that agencies develop defined career paths for their new agents and plan out the appropriate training programs over the course of 3 years, while at the same time providing clear benchmarks for them to meet.

"I often say it is riskier to not have a plan in place," Mazon said, adding that if new agents are not grasping the technical aspects of insurance or gaining ground in sales techniques, education helps bring those non-performers forward.

Different ways to learn

There are many ways to take classes today: online, in-person or self-study.

"Training has to be a mix of different methods," Mazon said. "Agencies have to have a combination of classroom and online learning as well as self-study. Most people learn better in a classroom setting where knowledge comes from the exchanging of ideas; the one-on-one is extremely helpful and it builds relationships that can last a lifetime. The networking is invaluable, too."

Butler agrees that there is nothing better than face-to-face learning, but she does see more classes going online, which are beneficial in helping to keep training costs down and are successful in helping agents supplement their classroom learning.

"Online training has grown and gotten better and better, and it is easy for agents to grab an hour here or there to learn new skills or gain new knowledge," she said. "And young professionals are certainly used to learning this way."

Any learning method can work if an agent wants to obtain a designation.

"For young producers, earning a designation helps establish credibility when they are up against more experienced brokers," Mazon said.

Butler said Gallagher encourages its agents to obtain designations. She said different parts of the country value certain designations over others, so the designations their agents obtain are often dependent upon where they are located.

Designations are seen as a way to fuel success, enhance your standing with the client and improve your marketability to an agency.

How insurance carriers help

"Often, agents think that attending a course sponsored by a carrier will be a 'product dump,'" McDaid said. "In reality, we offer a wide range of classes on a variety of topics, either for continuing education credits, for professional and personal development, or to sharpen expertise. Also, we support every level of agency staff including the agency/broker management and executive teams, both experienced and new producers, and support staff."

The goal is to help foster an agent's or agency's success and growth, and many carriers bring the training directly to the agencies. In addition, this education is often tailored to the direct needs of the agency, or as McDaid explained, "it is never one-size-fits-all" training.

The teachers are industry experts who understand the most current coverage advances, trends and issues in the industry.

"Many are current agents or have worked as an agent previously. They have worked in the world of an agency environment and thoroughly understand what it takes to be successful," McDaid said.

Education is an important component of your success as an agent or broker. If you are the agency owner, education is important to increase your firm's market value, not to mention that intangible component of improved morale and job satisfaction. Or as Aristotle said: "The roots of education are bitter, but the fruit is sweet."