Over the years, two names have become synonymous with producer training: The Hartford School of Insurance and The National Alliance. And while neither program is free, both continue to attract enrollment, even in tough times, because of the value they provide.

Hartford

Before the 1980s, many insurers, including The Hartford, Aetna and others, offered their agents “ground- up” training. But gradually, due to mounting expense pressures, they scaled back, and agent education by carriers fell by the wayside. In the late 1990s, The Hartford decided to make producer training a priority once more, said director Marie Alvarado.

The school was relaunched in 1998 with a core program for new commercial lines producers. In its first year, the school offered only two classes; today that's up to 23 classes in varying locations for the commercial lines program alone.

Since then, the school has trained more than 2,800 producers, including 240 last year alone. Alvarado, who has been with The Hartford for 25 years, spent most of her career working with agents in marketing, sales and on the technical insurance side. In 2000, she moved to start up a personal lines program in addition to heading up sales and marketing for the school. “It ended up being larger than I anticipated and gave me the opportunity to work with agents on the growth side,” she said. “I love to work with these small and large business owners and share ways in which they can grow their businesses.”

The school added programs for commercial lines account managers in 2000, and in 2001 added both selling and servicing programs for personal lines agents.

Classes are taught by a staff of dedicated Hartford School instructors who work directly with the producers attending classes. For example, in the 3-week new producer program, the same instructor teaches for the entire course, providing continuity and a trainer who is invested in the student's success. All instructors have extensive technical insurance and sales experience.

Although the school's flagship program is still the class for new commercial lines producers, there has been a definite shift in the type of people enrolling in programs that suggests a change in the way agencies are hiring producers, Alvarado said. “In the past, brand-new producers were almost from a cookie-cutter mold: young, male, hired right out of college. Today that's changed dramatically. We have people in second and third careers, individuals who may have held sales roles in other industries, and they are more aggressive about their education needs. We're also seeing more women, 10 to 20 percent in an average class,” she said. “This has done great things for our industry.”

This isn't to say that a fresh college grad can't come into the business and be successful; typically what separates the good from the great is a “fire in the belly, someone who is passionate about being successful,” Alvarado said.

New in the school this year is a producer coaching model, in which a virtual coach works with the producer when the agency doesn't have the resources to coach and mentor internally. This coach first works with the agency's sales manager to develop a plan based on targeted lines of business and industries to understand the agency's goals and objectives; then the sales coach works with the producer over 6 months on building sales and prospecting discipline. The virtual coach then follows up with the sales manager. All of this is conducted over the phone.

Hartford also added several one-day workshops for seasoned producers and account managers on topics such as business income, EPLI and nuances of the workers' compensation policy, as well as a one-day consultative selling workshop. Last year the Hartford School conducted almost 40 of these workshops across the country.

The cost per producer for the core program is $3,795, the same as it was in 1998. “Since then, we've really worked to add value to the program. For example, successful graduates are now able to earn their Commercial Lines Coverage Specialist (CLCS) designation from National Underwriter and receive continuing education credit as well,” Alvarado said. “The instructor stays with them through validation, so they can always go back months later with questions. We've had students well into their career who have called us with questions on various topics.”

Although the number of enrollments dropped early in the recession, participation is starting to trend upward again, she said. “2009 was a tough year; instead of growing, agencies were downsizing. Now we're seeing a renewed energy, cautious optimism that the market is changing and agencies want to be well positioned when it does,” she said. Classes are typically comprised of 16 to 18 students and filled last year.

Alvarado is confident that agency principals will continue to recognize that comprehensive training is essential for producer success. “I believe strongly that we can fulfill this training need more effectively and at a lower cost than agencies can do in-house,” she said.

She also emphasizes that training and mentoring go hand in hand. “Hiring a new producer is an investment in the agency's future. Principals need to match education with mentoring to make that investment worthwhile. For those who don't have coaching and mentoring resources in house, we are able to help them address this need.”

National Alliance

In its 41-year history, the National Alliance has continued to hear and respond to the educational needs of agents, agencies and companies, said Jim Cuprisin, research director. With four designation programs (CIC, CRM, CISR and CSRM), the National Alliance has become an educational staple in most agencies. Among the nation's top-ranked brokers, 98 of 100 were active participants in one or more programs of The National Alliance. “The primary reason for the adoption of these programs by so many is the rare mix of technical training and sales expertise,” Cuprisin said. “Knowledge without know how is simply theory; know how without knowledge can be a loose cannon on deck.”

Due to the needs of many companies for an apolitical and objective producer school, The National Alliance provides its own in an intensive 2-week format. Far more than a mere indoctrination, the producer school is a full introduction to the business and generates an actual individual “game book” for performance improvement that begins even before participants return to the office, Cuprisin said. “It is a quick start for the best producers and one that provides the direct benefits and return on investment that managers must expect,” he said. There is even a period during the 2 weeks when managers may attend at no cost to be sure they are on the same page as their producers.

With a fee of $2,500, the producer school fee includes 2 weeks of school, 2 online courses, 12 follow-up webcasts, and a sales manager training program.

High registrations for the Dynamics Sales Programs are a strong indication that practical training aimed at everyday producer/company needs are just as important as education leading to a professional designation. One bank-owned insurance company reported a 25:1 return on equity on a series of Dynamics of Selling programs provided to their agents. The Dynamics of Agency/Company Relationships specifically highlights the vital communication process between companies and the agencies they serve. In response to strong requests from the industry, the William T. Hold Seminars are now available to all insurance professionals. These one-day programs (4 hours online) are advanced and focused on important and often-overlooked niche markets.

The CIC Agency Management Institutes continue to be a source for process improvement and cost savings at the organizational level. They offer a broad understanding of the complex relationship between producers, service personnel and companies. For those who have already earned their CIC designation, the advanced James K. Ruble Seminars concerned with Managing People continue to be popular among CICs.

Finally, The National Alliance offers regular one-hour webinars, many free, that allow participants and prospective participants to “sample” instructors and curricula. These webinars are recorded for the convenience of those who cannot listen during the live scheduled times.

With a downturn in the economy, many agencies have also slowed with hiring new producers. Nevertheless, there was still enough of a demand to hold four National Alliance producer schools in 2010; four more are scheduled for 2011. “While the number of attendees in the school may be down slightly from some prior years, there are still many successful agencies that are growing, hiring producers, and looking for a proven method to train and educate them,” Cuprisin said.