Candid Reflections

Over the last few weeks the question has come up several times as to why I left being an independent agent to join IIABNY. A fair question as I know when I was an agent and I would hear former agents extolling the virtues of being an independent agent and I always wondered why that person left the independent agent ranks. Those conversations got me thinking about what had actually caused me to make the decision to leave. It wasn’t the account development and selling. Don’t get me wrong, those aspects of being an independent agent are hard work but they are also very satisfying. I enjoyed helping people to properly protect themselves, their family and their business. I truly felt a commitment and responsibility to my clients.

The more I thought about it the more frustrated I became because I realized I really enjoyed growing my book of clients. It may sound strange but every time I help a member or teach a class on selling or account development I get excited about the work and even I start to wonder why I left the agency.

Then it came to me. The problem wasn’t the selling or account development. The real problem was many of the other things involved in working at the agency. I was frustrated by the differences I had with how the agency operated. We never really developed a value proposition that was embraced by everyone in the agency. Although as an agency we professed not to sell based on price it happened all the time. I believed we should educate clients and prospects and encourage them to buy the coverages that were important for properly protecting them. Unfortunately agency workload and the desire to process items quickly kept this from happening on a regular basis.

The agency principals and management also gave lip service to cross selling and adding additional coverage that were important to properly protect our clients. Part of the problem was they weren’t willing to invest the time and training to assist the staff to be comfortable and effective in providing these services to our clients. The same indifference and focus on the immediate bottom line was evident in the sales management and support. Sales meetings were very one-way and focused on numbers and x-date selling. Building a relationship and rapport with prospects that would make us different, and I believed more successful in the long run, was frowned upon and a cause for criticism. Producers were directed to find and close clients that fit what the principals and management liked or desired to write. It didn’t matter whether the producer was comfortable or interested in writing those type and size of accounts. In my opinion the important issue was writing new business and additional coverage for existing clients that developed a desired and agreed upon new premium volume or growth. I would get frustrated over the lack of concern and attention that was given to the agency workflow, procedures and training. Changes that would improve the internal operation and make people more effective were not made. Many times the decisions to not make the changes were based on incorrect assumptions about the staff’s work habits and focus on time management when the real answer was we needed to invest the time in reviewing what we were doing and make the changes necessary to correct the situation. Rarely was the staff asked for their input or suggestions on how things could be approved. I will admit that these are my personal perceptions and may be slightly overstated due to my frustration level.

Even though all these issues existed I was still able to be successful in writing new clients and developing new accounts. This happened because I developed my own value proposition, communicated it to clients and prospects and then did whatever it took to make sure it came true. In general I pursued those type and size accounts that I was comfortable with, enjoyed working on and that I was the most successful writing and retaining. I developed a relationship oriented prospecting system that helped me to be effective and successful. I worked “off the books” with agency staff to cross sell and write additional coverage for clients. If a client of mine had a claim, I did whatever was necessary to assure them of fast and fair claims handling. I even followed up afterwards to make sure they were happy with how the claim was handled.

When I look back now on why I stopped being an agent I realize I got frustrated and tired of “swimming upstream”. The additional time I was using to make sure prospects and clients were handled properly and my value proposition was kept took away from my ability to locate and develop even more new clients. I got tired of the stress and friction caused by trying to get the agency principals to make changes in the agency that would have made us better run and more successful. I was tired of constantly being asked to work on new large commercial accounts that had limited potential for success and whose potential for retention was limited as they were the target of every other agency in our marketing area. In addition these accounts did not respond well to the x-date style of new account production. Selling to those prospects meant a significant time commitment with limited success and questionable long term retention.

I have some suggestions for agency owners and management. You need to be committed to making the changes necessary to make your agency effective and successful? Listen and react to the feedback your staff gives you. Involve them in the decision making and planning process. Provide them with the training and support that will allow them to be confident and successful. Make a commitment to not sell based on price, really mean it and support your staff in this effort. Work with your producers, listen to their input and recommendations and support their efforts.

The agency business is evolving. To be successful agencies have to create an environment that attracts and retains clients. You need to develop a value proposition that explains what makes you unique and why clients and prospects should do business with you. Clients and prospects need to be informed and educated about the risks they face and the most effective way for them to be protected. Agency workflow needs to be effective and streamlined using technology wherever possible. Your staff needs to be empowered and involved in the decision making and planning process. Producers need to develop solid prospecting and sales techniques based on relationship selling skills. They also need to be allowed to pursue the type and size of business where they are comfortable and achieve satisfaction as long as they reach their agreed upon growth goals. Your willingness to make these changes will have a positive effect on the retention and commitment of your staff as well as the agency’s success.