–What's the upfront commitment? By definition, “engagement” means a commitment to something. For example, if you solve coverage, service or relationship problems for your prospect and stay within budget, you will earn the prospect's commitment, right? Don't assume this is so until you state this rule of engagement and the prospect agrees. If your prospect doesn't agree, the rules of engagement are not fair to you or your agency team. Before moving ahead, ask the prospect what it will take to earn his business.

–Who's quoting and why? Avoid excess competition. If your prospect accepts bids from multiple agents, what does that say about your odds of success? More important, what does that tell you about the perceived value of your professional support? Set agreed-on rules about the mix of competition that's fair to you. When the prospect seeks multiple bidders, ask why before entering the insurance-quoting fray.

–How are insurance markets assigned? Has one of your competitors ever given a prospect a list of dozens of potential insurance companies in order to block those markets from you? Not only is that unfair to you, but it also puts your competitor's interests ahead of the prospect's. Don't agree to allow other agents to block your most competitive markets. Insist on access to the companies you count on to bring your prospects the best value. That's fair to you and your prospect. Anything less robs you of your tools and reduces your opportunity to succeed.

–What's the budget? Understand your buyer's budget before committing to compete. Can your prospect afford you? Is the budget flexible if your solutions add cost? Are coverage, service and relationship advantages important, or does the account go to the lowest bid? If your premium cost is within the budget, will your prospect spend what's left over for increased limits, broader protection, life/disability insurance, risk management support or claims-deterrent products?

–Define the decision-making path. What path is the prospect following to reach an insurance buying decision? Who else's input is required? When does the buyer expect your proposal? When can you expect a final decision? Do you have “last look” or the opportunity to adjust your proposal before a final decision is made? If not, does the incumbent or any other agent have those opportunities? Is the upfront commitment still valid at decision time? Insist on a fair, logical and clear decision-making path.

Unacceptable rules of engagement

–“Can't you just give me an 'apples- for-apples' quote like everyone else?” No. Insurance protection plans are not a commodity sold by the square foot, payroll dollar or revenue-rating basis. When a prospect uses the words “apples for apples,” he is saying that price, not value, is the deciding factor. Can you always offer the lowest price? When you deliver a low price, is the incumbent agent given a chance to beat, match or split the cost difference? What happens when your coverage and service are superior? When prospects control competition by requiring an “apples for apples” quote, run for the hills.

–”Would you just bring your best quote so I can present it to the owner?” Once again, no. When an office manager, financial officer or risk manager is delegating the task of getting insurance quotes, be careful. If the owner's representative is not the decision-maker, your probability of success is reduced.

Determine your contact's authority level. Can he or she say yes to your proposal and allow you to bind coverage? Does your contact have the power to recommend your plan to the owner, or is his or her task simply to harvest as many competitive quotes as possible? Ask if the incumbent agent and any other competitors have direct access to the owner. You must have access to the decision-maker equal to or greater than the incumbent's or any other competitor's.

–“Why do you need that?” Prospects must be willing to share information to help you build an insurance protection plan. Loss summaries, financial data and safety control information are critical to obtaining the best value for your prospect's insurance dollars. Past, present and future operational activities must be discussed candidly. Some prospects may not have the information you want. Others might be unwilling to share data they perceive as negative. Perhaps your buyer doesn't trust you with proprietary information such as financial statements or salaries. If your prospect can't give you what you need to create a professional underwriting submission or won't provide negative or proprietary information, you're proceeding at your own risk and perhaps preparing to fail in the attempt to gain a new client.

Create your own rules of engagement before meeting with a prospect, and prepare responses to any of the prospect's rules that are unacceptable. Don't leave your success to chance. When you set the rules of engagement, you present yourself as an insurance professional and become the point of comparison for the competition.

Ed Lamont, CIC, leads Dynamics of Selling programs and teaches at The National Alliance School for Producer Development. Ed presents professional selling, sales management and customer care programs for insurance associations, national brokerages and insurance agencies. Readers can contact Ed at (561) 737-7388 or by e-mail at [email protected]. For more information about Dynamics of Selling or The National Alliance Producer School, call (800) 633-2165 or visit www.TheNationalAlliance.com.