Since prehistoric times, tribes categorized their people as either Hunters or Gatherers. After thousands of years of evolution, today's families and business organizations are not much different, especially in the insurance industry where folks are still identified as Hunters (sales) and Gatherers (service).
The question is: Are you a Hunter or a Gatherer?
Me? I'm neither. I'm a Sniper.
After more than five decades in the insurance agency business, this new category identifies what I do now. In my column last October ("Producer development: What works, and what never works"), I described how producers should be managed according to different criteria and experience. At the top were those highly successful producers, usually with 25 years or more in the business, who easily sat on their renewal book and the nice commission revenue stream that flowed to them and the agency. Some of these veteran producers are even referred to as "RIP" — retired in place. Historically, producers at this stage who have attained RIP-type status are no longer managed effectively, with little direction or motivation to grow and rarely any change in their renewal-commission compensation.
The Sniper's mission is to target low-hanging fruit from his or her existing customer base. Set targets and goals so that the veteran producer can again enjoy the action and show the agency, especially the rookies, that veterans can still have successful, active careers. Don't necessarily set revenue goals; set goals based on producer sales, account rounding and activities, such as working with younger producers. Appeal to the veteran producer's ego, need for recognition and achievement, and his or her competitive spirit and desire to win.
Set Sniper targets for often overlooked sales of:
- Cyber risk.
- Fiduciary liability and ERISA bonds.
- Environmental/pollution liability.
- Personal director's liability.
- Employment practices liability insurance.
- Special collections.
- Personal disability income.
- Long-term care.
- Key person insurance.
- Sales of various new work site voluntary benefits.
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These lines of business are not standard coverages by any means, and require the knowledge and expertise of a seasoned producer. The agency can create other targets for producers and make quarterly Sniper campaigns mandatory for all veteran producers and optional for all others. If a veteran producer opts out, the agency should change the renewal commission payout to any producer who insists on remaining RIP.
Putting a sniper in action
Years ago, the old St. Paul Insurance Co. had a terrific insurance program for car washes on a business owner's policy-type form with premiums developed on a property insurance basis only. I recall there were more than 400 car washes in the Long Island and Queens, N.Y., areas at that time, and we were trying to build a growing agency sales force.
Prospecting was an issue. We had a handful of producers with two or three years of experience who needed new business sales activities. We developed our own in-house Sniper sales program called "Quote & Shoot." Assigning producers to specific geographic areas, their mission was to take a photo of the car wash and bring it back with the address.
Using a three-tiered property premium-rating basis, we calculated business owner's policy premiums for $50,000, $100,000 and $150,000 with all of the liability limits at $1 million. We then inserted the color photo of the car wash and the "Three Quotes" proposal in a bright presentation folder and would "shoot it" to the car wash prospect with a nice cover letter. Guess what the car wash prospect did when they received our photo and insurance quote? They immediately pulled out their current policy to compare it with ours and check what their cost was for the limits they carried. It was easy for producers to follow up for appointments, and often the prospect contacted us first. That was a terrific activity, and we had a lot of fun with it. It provided activities for cross-selling and account rounding and lots of long-term relationships for producers for years.
Look around. There is a lot of low-hanging ripe fruit that can be picked off before it hits the ground. By the way, even the Gatherers can become Snipers. Think about it.
Barry Seigerman is an independent broker/producer. Contact him at bmseigerman@gmail.com.
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