For many years, independent agents were little more than policy shoppers–their sole measure of success being how low a premium quote they could get for price-sensitive clients. Thats all changed, and for the better. Indeed, as the profiles of this years finalists for the National Underwriter Commercial Insurance Agency Of The Year award reveal, selling a policy is often the last thing on an agents agenda when pitching a new client. Risk identification, loss control and alternative markets are now front and center.
Whats more encouraging is that top-flight agencies are sticking to their risk management mantra as most of the market softens, even though insurance is a much easier short-term sell.
The change in mindset requires thinking long term (How can I be proactive to lower the cost of risk?), rather than seeking immediate gratification (Insurance is cheap, so why not just buy coverage, transfer the risk and worry about exposure management next year?).
“A challenge for a top agency is to successfully keep risk management at the apex of [a clients] priorities in spite of the inevitable industry ebbs and flows,” warned Paul Hering, CEO of this years award winnerBarney & Barney in San Diego. “At the crux of this is our insistence on considering ourselves risk managers rather than insurance salespeople.”
Seconding this motion was one of two agencies to receive an Honorable Mention this yearMcQueary Henry Bowles Troy in Dallas. “In every way, we try to act as an extension of our clients–their outsourced risk management department,” said Bill Henry, MHBTs chairman and CEO.
Its not just clients who have trouble committing to a long-term, risk management philosophy. Principals at Universal Insurance Services of Grand Rapids, Mich., learned this the hard way after assimilating a 10-person middle-market group from the local office of a national brokerage. The tale of their successful struggle to adopt risk management helped earn them this years second Honorable Mention.
William Rothwell, Universals president and managing partner, described a cultural challenge which, while not without any pain early on, turned out to be a very positive influence on all members of the firm.
All three finalists boasted an advantage over the national brokers in that they can be more nimble, more responsive and less bureaucratic, while having local owners and service providers within easy reach of clients.
Their target is the middle marketfirms perhaps too small to warrant a fulltime risk manager, but big enough to require more sophisticated loss control services and alternative market options.
Marsh purged thousands of these accounts after being denied volume-based retail commissions, leaving many prime prospects in play. Agencies modeled after our award winners are perfectly positioned to pick up these orphaned clients and outperform their bigger rivals with tailor-made risk management programs.
Read over the profiles of our award winners and learn for yourselves the secrets of their success.
While I chose the finalists, I want to thank the two industry leaders who joined me to pick the winner–Bobby Reagan, president of Reagan Consulting in Atlanta, and Charles Haake, CEO of last years NU champion, Haake Companies of Overland Park, Kan.
I also want to thank all those who entered this yearfar more winners than we have space to honor. The competition is always steep, but if you reapply next year (or enter for the first time), perhaps you, too, will receive national recognition as a role model for your peers.
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