Two to Tango

He makes a good point: a relationship is a two-way street, yet some insurers perceive agency distribution of their products as a finely calibrated machine that takes in customer orders. The human connection is marginalized, even though numerous studies indicate the public at large prefers to buy insurance from people they can engage in face-to-face settings. "When we don't have a strong relationship with a carrier, it's because they tend to see things as black and white," Garvelli said. "Some insurers just point to their contract and tell us, 'This is the way it is.'"

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Rapport and Respect

It doesn't have to be this way. Good relationships allow give-and-take by each party. If one party is rigid and refuses to bend to the other's critical needs, it should not expect its business partner to go the extra mile. Think of it this way: If an agent has a great rapport with Carrier A and a poor one with Carrier B, which carrier will be given the better business?

Lynn Rasmussen has the answer: "I've been in conversations with underwriters and marketing managers who have said that they are more inclined to do a favor because of our relationship and the quality of business our firm provides," she said. "If I only called the ?carrier when I have a challenging account, they would be less likely to help. I understand this position perfectly."

Rasmussen is the national practice leader of private risk management in the Tampa, Fla., office of Wells Fargo Insurance. She provides several reasons why a strong, valued and shared relationship with a carrier's personnel is crucial from a business standpoint. "When there is a real partnership of mutual respect and trust, I have found that the carrier is more willing to consider an exception, such as a personal lines account with slightly less than desirable underwriting characteristics," she said.

"This occasionally happens for all agents," she added. "But when we are frank about the situation to an underwriter who trusts us and knows we'd never embellish the facts, he or she is more willing to help us out, knowing how important the account is to us. In our private risk management practice, the personal lines accounts are generally pretty sizable."

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Both agents cite numerous instances where a tight bond with a carrier's underwriters and marketing managers afforded higher limits of capacity than normal, particularly for catastrophic exposures, and guided faster claims payment and more diligent claims review. "I've had situations involving a contentious claim that's not going right, where I really need the underwriter to step in and help me out," Garvelli said. "For instance, there might be an outside adjuster involved with a catastrophic claim filed by a very important client and things are getting confusing. Where I have a strong relationship, the underwriter often will step up for me and ensure the claim is put on the top of the pile."

Rasmussen shares this experience. "Even the best claims adjusters are going to upset an important client in some way or another because there is this thing called the 'insurance contract.' But I've had situations where if I think a claim deserves extra attention, I can get a higher-level set of eyes to look at it, simply because of the strong relationship I have with that carrier."

Although this bond may not change the outcome, Rasmussen said the client knows the claim has been elevated, and is being fully scrutinized. "They -understand the claim has been treated with absolute objectivity and fairness at the utmost levels," she said.

Garvelli also used the word "fairness" when describing the value of a real relationship with a carrier. "This is not about giving the best business to the carrier that entertains or 'wines and dines' us the most," he said. "What I'm looking for is consideration and fairness when I have a situation needing attention. I want the carrier to be respectful of what I'm saying and trying to accomplish."

Both agents concede that even with solid carrier relations, there are times when the insurer's personnel change, sometimes overnight. "One day Bob is here helping me out like always, and the next day he's gone and someone new is in the position," Garvelli said. "The good news is that behind the scenes Bob has already sat down with his replacement and explained everything about us. We're not starting up again from scratch; we pick up where we left off. This is because Bob cared enough about his relationship with me to prep his successor."

"Carriers changing underwriters, reps and adjusters happens all the time, and it's a challenge, of course," Rasmussen said. "But it would be hypocritical of me to be overly critical. Our clients feel the same way when someone who has serviced their account for several years moves on."

Nevertheless, some insurers are better at transitioning staff than others, she said. "When we are in a valued relationship with a carrier, we don't get a terse email on Monday saying, 'Susie will be gone on Tuesday and Sally will be taking her place.' We receive a personal phone call from someone in authority who empathizes with our feelings, knows how much we liked working with Susie, and explains that they simply had to make the change. The best carriers ask for feedback on the new person, wanting it to be as good an experience as we previously enjoyed. That's how it should go."

Ultimately, both carrier and agent are seeking the same thing—a satisfied and profitable customer. An effective relationship between the agent and insurer allows both parties to make a meaningful difference to the client.

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