Search
 

Wresting profits from small commercial accounts

MAKING a profit on small-commercial accounts can seem hard. In our 20 years of consulting in the insurance industry, we've seen many agents and brokers treat small-commercial accounts like the "forgotten stepchild." They are sent to the corner and

By staff Writer | Updated on September 30, 2004

MAKING a profit on small-commercial accounts can seem hard. In our 20 years of consulting in the insurance industry, we’ve seen many agents and brokers treat small-commercial accounts like the “forgotten stepchild.” They are sent to the corner and given little attention by owners and managers, who consider them necessary but unprofitable. Some agencies try to avoid handling small-accounts business at all. Others establish a small-accounts department just to keep the business isolated and out of the way of busy producers.

Many agents have told us they write small-commercial business only because they can’t seem to avoid it. Perhaps this is because insurance agencies, by their nature, are community-oriented businesses. They advertise in the Yellow Pages, and their producers are constantly out “on the street,” seeking new contacts and getting involved in community activities. When small-accounts prospects call or visit an agency, it’s hard to turn down their requests for help. In some instances a large client refers a small account, and an agency handles the small account to keep its large client happy.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.