Secured Advantage Podcast: Recent Episodes
Secured Advantage
In today's society, the term "independent" has become a buzzword, a byword for success. In the insurance industry, people can't afford an independent insurance agency, especially because they like having more choices and better service.
Independent agencies offer a variety of plans and services to their clients without remaining tied to any one carrier. The downside of independent agencies appears when owners attempt to grow their businesses. Take a look at these three strategies you can use to grow your agency and determine how you can deploy these strategies to your advantage.
Grow Your Insurance Agency OrganicallyThe first step in growing your agency is organization. Organizing your office space will make it easier for you to find whatever you need when you need it. In short, you’re increasing efficiency.
Don’t be afraid to hire extra staff who can help you produce more on a daily basis. No one is suggesting that you hire a bunch of new people all at once, but you should plug holes in productivity as they arise.
Finally, you should foster the relationships you already have with targeted networking. You want to get to know everyone who is even six degrees away from you because they can give you the sort of support you need when you need it most.
Increase Your Credibility in the Insurance IndustryYou should make sure that your agency is respected, trustworthy, and reputable in the community. This will help to build your credibility in a way that makes people in the area think of you when they think of insurance. They may not even have insurance with you, but your name is in their mind—pretty much—at all times.
You should also pour some time into your website because that website speaks to everyone who learns about your business. It’s more likely that a new client will get to know your business through the website, and a beautiful website goes a long way.
Insurance Agency Branding TipsTo grow an independent insurance agency, you must implement an agency branding strategy. What is agency branding? Briefly, it’s the process of creating a unique and identifiable brand for your agency. Branding comes through in a:
· Logo, while others use a tagline
· A color scheme and/or a uniform.
· A name and face to match the business.
While agency branding can pay big dividends, you should remember that it is a long game. You must be prepared to invest in branding and spend quite a bit of time making the right choices for your business so that the trajectory is always upward, even as the economy fluctuates.
Reach out to us at Secured Advantage for more assistance growing your independent insurance agency. We recommend that you be proactive, build relationships, and focus on branding your agency as the expert in the field that your clients need.
When you work in the insurance field, profit sharing is an excellent incentive offered by carriers to drive sales. When your book of business is large enough, the profit-sharing checks come back to you from each carrier, increasing your income. However, you may not know how to reach those goals and increase your revenue. Your book might not be large enough—what are you to do?
At Secured Advantage, we have a few tips that will help you get the best results, grow your business, and earn more income.
Work Smarter, Not HarderYou want to look at your book of business as a “big picture” item. This means that you’re trying to grow the parts of your book that are lagging behind. We tend to want to serve the more robust parts of the book, but you may need some help reaching your profit-sharing goals in other areas.
At the end of the day, some agencies will never reach the goals set by carriers. Therefore, working with a network of brokers like Secured Advantage helps you contribute to the whole instead of assuming that a few extra hours spent in the office will push you over the edge.
Creative solutions can often bring you closer to your goals, especially if you join a network like Secured Advantage and work on growing your business at the same time. Many times, smaller agencies could benefit from bringing on new agents who specialize in otherwise untouched areas of the business.
For example, an agency that writes 99% of personal lines of business may want to bring on someone who sells life insurance. You could even branch out and bring on a commercial insurance expert so that the business is expanding—but not so fast that you cannot keep up. Allow these experts to grow their areas of the business, while also relying on Secured Advantage to help you by joining a much larger network.
Improve Your Bottom LineAs you work to reach your profit-sharing goals, your bottom line is improving. The business is growing. This is an important part of managing your agency. You don’t want to lose sight of your book of business by only focusing on just one thing—therefore you want to spread your efforts across several lines of business.
By doing so, more money is coming in. This is also a good way to help new brokers or producers learn the ropes and grow in the business. They are everything—not just one thing. Plus, this idea ties in with expanding to other lines of business in a thoughtful and measured way.
Reduce Top Line Expenses Remember, you can close insurance deals with a business card and charisma. Yes, you want to market your business, but you don’t want to go overboard assuming you will see that money again. Working with Secured Advantage helps you cut back on certain top-line expenses so that you can focus on the core of the business.
Because insurance is a commissioned line of work, focusing on the task of selling insurance often outperforms mass marketing with no intended audience. If you wish to, however, market your business, do so effectively.
Reach out to our team at Secured Advantage to learn more about profit sharing and/or to increase your profit-sharing potential. Our network of agencies works together to help everyone increase profit-sharing revenue, decrease E&O costs, and network to ensure that everyone succeeds and grows their business.
Inflation is a buzzword in the financial world, but what does it mean for insurance agencies? What is the impact of inflation on an insurance agency, and how does that (sometimes cataclysmic impact) trickle down to agents, employees, and consumers?
The Impact of Inflation on Insurance AgentsInsurance agents must push through objections from consumers when quoting insurance policies. In short, consumers have less buying power, while insurance premiums are rising. It can be difficult to sell insurance in this environment.
At the same time, the insurance producer has less buying power when their commissions are paid unless the premiums paid by their customers continue to go up. Effectively, the candle’s getting burned at both ends.
How Does Inflation Impact Insurance Clients? Inflation hits consumers when they must pay their premiums that are likely seeing increases. As mentioned, they have less buying power, because at the same time, everything costs more, meaning that the limits within every policy are constantly rising.
For example, a client who purchases homeowner’s insurance for a home they bought for $250,000 a few years ago may need $400,000 or more just to rebuild the house in the event of a total loss. As a result, the limit value of the homeowner’s policy jumps and so does the premium.
In the case of auto insurance, the cost to fix a car that has more high-value technology built into its sensors and safety features increases the cost to repair every accident and in turn, increases the cost of the insurance premiums. Layer this on top of the rising cost of the vehicle – new or used - and the premiums are likely to rise significantly in times of inflation.
In short, everyone is stifled by a lack of buying power caused by rampant inflation.
How Does Inflation Impact Insurance Agency Owners and Stakeholders? Insurance agency owners and stakeholders are at their wit’s end determining how best to spend their funds, hire staff, provide benefits, and invest in the future. Moreover, agency owners who wish to sell are getting less back on the dollar when the contract’s signed.
In the event of a sudden succession, the partners who wish to buy in have less buying power, which could derail a succession plan from the get-go—especially if the insurance used to back the succession plan is no longer valuable enough to pay for a said succession plan.
Contact Secured Advantage for Insurance Agency Support Reach out to our team at Secured Advantage for support when you want to improve the financial state of your business. We help insurance agencies join a larger network, save on E&O, EPLI, and D&O coverage, increase profit-sharing revenue, and even plan for succession, retirement, and more. We’re happy to help you achieve your goals and operate on your level today.
Planning is more than a business task—it should be an integrated element of your culture. Below, we will discuss the importance of planning, explaining how you must plan for every eventuality—even those that aren’t all that pleasant to consider. According to Entrepreneur, around 75% of businesses don’t have a succession plan, and that means they’re not actively thinking about the future – all versions of it.
With a robust and detailed business plan, you can push your agency into the future, ready to capitalize on opportunities when they present or be prepared for trouble when it comes, and ensure the financial security of your family and staff.
Regular Business Planning ActivitiesPlanning is an ongoing process as you build a business model, consider any changes you should make, hiring decisions, investments, expansions, partnerships, etc. You’re consistently evaluating the performance of your business and how that matches up with the goals you’ve set. However, there are other items you must consider if you wish to create a robust and effective plan.
Delegating Business Tasks At one point or another, you must delegate business tasks to your team. This could be junior partners in your agency, apprentices, office staff, etc. In short, you cannot be the only person who understands how to manage your business and get the job done.
In fact, this idea must go far beyond the idea of “I want to be able to go on vacation and relax.” You want your legacy—the business you’ve built over many years—to go on for many more years after you retire or pass on. Allowing everyone around you to understand how the business operates protects the future of the business should something catastrophic occur.
Why Does Perpetuation Planning Matter? Perpetuation planning matters because it prepares the business for the future with you in it and beyond. For example, you must plan for all the following circumstances:
- You might pass away unexpectedly, and you need a succession plan in place that hands the business off to the appropriate parties.
- Your succession plan should include junior partners who may need assistance after you’re gone—but before taking over fully.
- Succession plans must include parties beyond those in the office. For example, you may need to include your spouse and children.
- What if your spouse and children do not plan to carry on the business? How can they sell the business in a manner that benefits them and protects their financial future.
- Can you sell a portion of your business now, allowing you to semi-retire or pull back from the business?
- Would selling a stake in your business help you continue to recover after a major interruption or loss?
What Does the Future Hold for Your Business? The future of your business is contingent on your planning and business modelling. At times, you may find that the business cannot grow without improved profit sharing from the carriers with which you’ve partnered. You can turn to Secured Advantage to increase your profit-sharing revenue, to network with others who may want to partner with you, or even to find partners who may wish to help in your perpetuation, now and in the future.
Contact Secured Advantage for More Information on Business Planning Contact Secured Advantage today for help with the perpetual art of planning, be it succession, selling your share in the business, retiring, or moving on after the loss of a loved one. We’re happy to help you organize your agency for the future so that you can rest comfortably in the present.
When you manage an insurance agency, you may have a certain segment of clients that are difficult to handle. They have needs you can’t fulfill, or you may not have figured out how best to help them. At times, they seem to have outgrow your services, or you may need to expand your agency to retain their business.
As you consider how to help each of these clients get the most out of their insurance coverage, take a look at the insights below so that you can modernize you’re agency. Sure, you may not know how best to serve these clients today, but there are solutions out there for you.
Long-Time Clients Need New ServicesYour long-term clients need modern solutions. Sure, you’ve had some of the same clients for ages. They’ve renewed every year and almost never needed your help, and when they did, you could easily resolve the problem. Now, their businesses are expanding, their families are growing, and the world is changing at an accelerated pace.
What do you do for these insurance clients?
Make sure you consider doing all of the following with your clients:
- Reviewing life and business changes each year
- Discussing new insurance products every year
- Reviewing coverages annually (no automatic renewals)
- Streamlining coverage where needed
Your clients will thank you, and you can keep their coverage up to date. At the same time, welcome your clients to bring ideas to you. If they have questions about something they merely read or heard about, consider these ideas, and help them implement wise financial changes.
Business Clients Need Fresh Perspective They always say that you can’t teach an old dog new tricks. That’s not necessarily true. Remaining current on what’s happening in the industry is no more difficult than remaining connected to the insurance industry.
Get to know younger agents in your area. Hire younger agents if need be. Read industry publications. Review data from carriers and get an idea of how the insurance industry is changing with the times.
This is the time when you say to your clients:
- “In the 2020s, insurance carriers are…”
- “This isn’t the 90s”
- “We need a new strategy”
- “Have you considered”
- “I was reading the other day”
It’s nice to see clients renew and pop that commission check into your bank account, but what else are you doing to craft the best insurance coverage and experience for them?
Keep the conversation open and the ideas flowing.
Personal Insurance Clients Need Modern Solutions Your personal insurance clients need coverage that actually makes sense for them. Remember when you added that jewellery rider to your brother in-law’s homeowner’s policy in 1972? One would imagine that all that jewellery is far more valuable now than it was then. What if he got divorced? Is he new wife’s ring covered?
Moreover, personal insurance clients need coverage that keeps up with the times. Sure, kids back in the day just needed cheap insurance the second they got a car. In today’s world, one little accident could result in a multi-million-dollar lawsuit. Are you preparing your clients for the realities of modern life with modern insurance solutions?
Reach Out to Secured Advantage for Help Modernizing Your Insurance Agency Reach out to us at Secured Advantage today to learn more about modern options to serve all your clients. Looking for a fresh perspective and new solutions is the best way to care for your clients. While you can’t make every change right away, we’re here to help you join a network of insurance professionals, improve workflow, increase cashflow, and secure your agency for many years to come.
Joining Secured Advantage helps insurance professionals improve their bottom line and support sustained growth for their agencies. However, you might not have known that there are several other things that Secured Advantage does for you.
As an insurance professional, you know how much it costs to purchase E&O coverage for your agency, and it’s quite helpful to reduce costs where you can. With the median cost of E&O insurance sitting at $713 annually, every penny saved can go back into your business and further your financial stability for the years to come.
So, what does Secured Advantage do and what does that mean for your growing business?
Why E&O Insurance?Errors and omissions coverage is a necessary expense for your agency because you never know when accidental errors or omissions (or perceived errors and omissions) could occur. Your policy pays out to ensure that the affected parties are remunerated properly. You know this because you tell your clients the very same thing.
Even though you’re an insurance expert—mistakes can happen. Doctors aren’t the best patients, race car drivers never think they’ll get in an accident, and you don’t want to ignore certain types of coverage because you’re too close to the situation.
Remember, insurance costs money, but payouts are far more expensive than insurance premiums could ever be. Saving money on a policy like this is a critical part of keeping operating costs as low as possible.
Without professional liability insurance, you’ve put yourself in a difficult position. But, how can you save money on insurance that is, for all intents and purposes, mandatory?
Take Advantage of Your Clean RecordMore than anything, you want to take advantage of your clean record. Do business responsibly, take great care to track how your staff manages their work, and ensure that you confront all issues head on. There are plenty of situation that can be resolved long before you need to file an insurance claim.
What does this mean? You can take control of your agency, prevent mistakes before they happen, train your staff regularly, and supervise (on some level) everything that happens in your office.
Leverage Your RelationshipsYou’ve been in business for some time, and you can use the relationships you’ve built over time through associations, industry groups, or partnerships (like the partnership you’re considering with Secured Advantage) to cut costs.
When you join Secured Advantage, you get a rate based on the size of a much larger organizations—ours. As a result, you can save money on E&O insurance, making your next errors and omissions quote that much more affordable.
Comparison ShopControlling errors and omissions insurance costs requires shopping around as much as possible. This is a bit different when you work with Secured Advantage because you can get the same coverage and savings everyone else is getting. However, you should not be afraid to share insurance options that you believe will be cheaper for everyone.
By working together, Secured Advantage partners enjoy a better top line and bottom line.
Buy the Right CoverageWhen you purchase EnO coverage, remember that you must tailor that coverage to meet the needs of your agency. Because your business may have needs that are far beyond what’s common, you should mention these issues when seeking out coverage.
(For example, you have clients running ships up on Lake Erie and your coverage must reflect the level of risk you’re taking on simply by representing them and writing their policies.)
And again, you will find that your rates improve because you are part of the Secured Advantage network. Your broker insurance should be a line-item on a ledger—not a burden that impacts everything your agency does.
Never Worry About Non-Regulated ProvidersNon-regulated providers are not generally a concern for insurance professionals because we understand who is legitimate and who is not. At the same time, younger, smaller, and more financially unstable agencies may seek any coverage they can find that fits into a rather tight budget.
When you work with Secured Advantage, you can avoid these providers altogether because you get better rates as a partner within our network.
Contact Secured Advantage for Information on PartnershipsContact Secured Advantage when you’re ready to join a network of agencies that can help you save on your E&O coverage. Plus, there’s more to Secured Advantage than saving on overhead. The Secured Advantage is greater profit sharing in your pocket, a network of professionals you can turn to for advice, succession support, and an overall increase in your top line and bottom line.
In Part 1 we covered why you want to become the Trusted Advisor – the benefits and value to you, your staff and all those connected to the agency – directly and indirectly as well as introduced the program that David Levy built to help agencies make the transition to a Trusted Advisor model. Agencies that successfully transition commit to the process and the adoption of a platform that uses the acronym KAR:
K is knowledge base,
A is the activity of analyzation, and
R is response.
In many cases, your agency did not have a base operating model that was simple and clearly defined like this one…so this is new. If you have an operating model centered on core values, then connect those key characteristics into this structure as we review each area individually.
Knowledge is important to being a trusted advisor. To be knowledgeable, is also to be experienced. Knowledge and experience inspire trust, dependability, reliability, and honesty in a business relationship. Industry knowledge should embrace the laws of the industry, policy language, risks management, coverages, competition, products, services, trends, methodologies, techniques, models, and the needs of your customer. Having an in-depth knowledge in these areas stimulates certainty, and confidence which allows for customers to be educated and the ability make buying decision with less hesitation and more confidence. The idea of “not selling insurance but teaching people how to purchase insurance” is the basis of the Trusted Advisor relationship. Having a strong knowledge base will provide the opportunity to gain a greater understanding of the needs of your customer and optimize your ability to deliver the highest quality solutions. Knowledge and experience allow you and your customer to receive the maximum benefit from the customer relationship.
Analyze indicates the ability to accumulate information and in turn examine and explore the significance of the information relating to a particular circumstance. Additionally, use that information to derive a conclusion that offers a benefit, solution, or direction to optimize an outcome. Being able to gather pertinent information that is relevant to a customer’s needs is paramount in providing an effective solution. Central to the success is having an effective “interview” process that can extract the most valuable information illustrating the needs of a customer. Listening skills become a significant factor in performing “the ultimate interview” as well as asking the right questions. This interview should identify inherent risks, gaps, and the mindset of your customer. Evaluations or the analyzation of this information will assess the needs of your customer. Relying on your knowledge, experience, resources, confidence and in some cases your level of empathy, you can diagnose the issues at hand and develop the most effective solutions that supports the goals of your customer.
Response is a thoughtful communication that educates your customer and provides a benefit improving a situation or circumstance. A response identifies the issues, provides information, explains the “how’s” and the “whys”, includes insights, stories of success, examples, information, and is of high quality and viewed as a “safe haven for the hard issues”. Offering a fact base explanation that is includes the issues at hand, a diagnosis of the issues and a plan of action to resolve the issues. A response should resolve problems, add comfort, and give the customer the feeling you have a deep understanding of them and their needs. Being genuinely interested creates a connection with your customer intellectually, emotionally and develops the foundation for a long-term business relationship ensuring optimal ACV’s, robust referrals, and being accepted as a Trusted Advisor.
The result of implementing this approach – that’s what we covered in part 1 - go back and see the list! Practically speaking – agencies that follow this approach are easier to operate, have more value and provide for a better quality of life for all those involved with it. I know that sounds too good to be true, but that is what we work hard to help our agency principals create at Secured Advantage.
Looking around the industry and seeing many (maybe too many!) different agencies, I started to notice that the best ones have a common thread running through them. Whether consciously or unconsciously, they have moved away from “selling insurance” and upgraded their work to being the trusted advisor of the customer. Not every agency takes the same approach to how they enhance their agency’s customer experience in their shift to being the trusted advisor, but there are enough common elements to help you build a solid framework within your agency for improved results.
As I noticed the trend, I reached out to David Levy – a regular consultant and business growth coach for insurance agencies and other businesses. He has been helping agencies make this kind of transition for many years and structured a program that steps the agency through the process of making a successful transition into this new way of operating. The benefits he has found for these agencies who make this commitment are significant.
One thing that emerges from this process - everyone in the agency – staff and leadership, those connected the agency – customers, vendors, and centers of influence as well as those outsides just watching at a distance, find a significant improvement to the quality of the relationships and opportunities made available through this shift.
Here is a list from what David has witnessed firsthand:
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Increase Average Cash Value of a customer
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Increased Lifetime Cash Value of a customer
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Increase potential for and higher quality referrals
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Less customer maintenance
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Drive results
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Better risk management
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Higher level of customer satisfaction
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Better customer experience
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Strong corporate identity
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Stand out in the industry and community
All these benefits are obviously impacting the top line revenue and the bottom-line profitability of an agency in a positive way. To achieve this kind of transformation, the agency and it’s staff will begin to think differently and approach the work of the agency differently…and it all starts with how customers are engaged.
Our next post will focus on the three key elements necessary to successfully make the transition and how these three pieces come together to impact the results of the agency in such a positive and significant way.
Who is a good Brand Ambassador?
The quick answer is - anyone who has been a successful spokesperson for another product, organization, or brand. Unfortunately, those people are not all that common to find in our communities. Your next best option, individuals who represent the brand of another organization in a leadership level. Typically, larger well run or well managed organizations invest in the training of their management teams. A fast-food manager might have been to several classes on representing the brand and working with others to train and communicate their value to the community. These individuals often find it easy to talk with people and feel comfortable in an active environment.
One of the best places we have found for Brand Ambassadors - former professional sports cheerleaders! It might not sound like a good fit at first glance, but very often these women have been coached and trained as much or more on how to represent the ownership of the organization than their craft of cheering and creating the hype! Studies also suggest that women are better at starting conversation and developing a relationship than most men. With a natural advantage, combined with their experience and coaching, this suggestion seems to make more and more sense at every turn. The core of the issue, the best Brand Ambassador knows what it means and is willing to do their part to represent the organization in the best way possible.
What are the key components to look for?
It would be negligent to not discuss a key consideration surrounding the potential success of a Brand Ambassador:
Who is the customer? AND Who do THEY want to talk to?
Consider the demographic of your customer and the best individuals to connect with them. Evaluating the tastes and preferences of your target market will help you find a person that will be the right fit for your agency and for the target market. A simple example, while running the risk of following too many stereo types, your traditional auto body repair shop owner is more likely to stop what they are doing to take an impromptu meeting from an attractive female brand ambassador. Much the same way a salon owner would be willing to sit down with an attractive male brand ambassador.
Now clearly every generalization has its exceptions but based on the key characteristics of your target market customer, you can find a good fit brand ambassador. Pharmaceutical companies, restoration companies and even big car companies have been doing this type of market matching since their respective industries began. Since you know who your customer is, it is not difficult to find the right kind of matching personality to open up doors and build strong relationships.
How does it work?
The Brand Ambassador is focused on opening doors and introducing the team. In smaller organizations, the team might be lean, but an insurance expert is needed to back up the Brand Ambassador. You have the list of where your prospects are, and you have the materials to help tell your story...let those be the tools used by the Brand Ambassador to open doors. Every door opened is an opportunity. Rate the opportunity using the rating system and begin the follow up process to create the right timing to make the ask for their business. The stronger the system and follow up, the more likely the prospect will ask the agency for help to do business together even before you do.
One important note - the Brand Ambassador is not an insurance person per se. Perfectly capable people with no insurance knowledge are successful brand ambassadors for an agency...however, the best ambassadors will learn the insurance business as they go to make those initial conversations with the prospect even more productive. The goal is never to make insurance experts out of your door openers, but rather equip them with a few extra words to help approach the different insurance opportunities from all possible angles. It makes for a great training step in the program for the Brand Ambassador to go on calls to existing customers in the target market with the agency principal. Those "ride-along" opportunities will provide tangible demonstrations of the agency's culture and value in the relationship between the customer and the agency.
What should we expect?
This program is activity based, meaning you first track and measure the activity. How many people on the list need to be contacted each day can be the first measurable and track-able item. From there it's simple sales management, complete with closing ratios and average customer revenue forecasts. Based on the geographic density of your prospect list, you may be able to see multiple prospects in one day. Determine the right level of activity on the front end and follow it through the system OR determine what kind of result you want in your book and work backwards to determine how much activity is needed on the front end. Either calculation will give you a strong estimate for the potential revenue that is possible from this approach and the added work that is needed from the team.
All of those resource constraints should be considered thoroughly, including what will be available to pay the Brand Ambassador for the activity. Some agencies are able to commit to multiple Brand Ambassadors actively working full time, while others may employ only one on a part-time basis. The concept can scale up or down easily based on the defined opportunity of the target market and access to the prospect and data.
Committing to the whole process provides the highest likelihood of success for you, your agency and the members of the team. If something doesn’t work perfectly the first time through – make an adjustment and push forward. There is no need to start from scratch if you have carefully stepped through each part of the process.
Finally, not everyone on the team will understand what you are trying to do with this program. Take the time needed to properly communicate to your team each of the parts to this process and how the responsibilities will be broken out. Once everyone is on board, you can really begin to build your business!
Knowing where the next opportunity for new business will come from, eases the stress of these issues. With good answers to these questions from Part 1, it makes sense to get a few more questions answered. Accepting the status quo as the required path forward should not be the only option being considered. We investigate the answers to this next set of questions to determine what the right adjustments - if any - are to how and where the agency plans to move forward effectively. You wouldn’t build a house without a blueprint and you wouldn’t take a vacation without a plan. Building your business should require the same mindset. Having a good solid business plan exponentially increases any company’s success rates.
- What would my best customer look like?
We start here, because often the clients we have are not always the clients we want. A customer that has been with us from the beginning might look very differently than the customer that joined recently and has a better total potential for embracing the full value being offered by the agency at this time. It is also possible, that as we added more members to the team, we may have added a wider range of expertise, broader network of relationships and varied areas of enthusiasm. Understanding what the best customer looks like today - as the agency is positioned now - will help identify what potential is currently untapped within your agency. The more specific we can be on defining what this best customer looks like, the easier it will be to answer the next questions.
- What exactly would they own?
You may have already outlined this answer when you defined your best customer. It's a separate question to make sure it is not overlooked. The coverages they purchase are determine by what they own. You can't buy coverage on the boat you don't own. For commercial accounts, it is important to be specific on what kind of business they are operating. The more we can define what the best account looks like, the easier it is to go looking for them.
- Where would I find these customers?
There is a good chance that the best customer looks a little different than the current customer of the agency - and that’s OK...and truth be told - it's great news! Many agencies feel like they have tapped out the markets that they have traditionally operated in. They are looking to start fishing in another pond but want to find the right one before spending time and money shifting the focus of the agency. With a clearer definition of the best customer written down on paper, it is time to start digging into where these insureds hang out, get information, network and do business. For those looking to work with individuals, we think in terms of social groups, neighborhoods or maybe less personal, zip codes or counties. For businesses, we look for associations, subscriptions or key identifiers in their name. If we want to work with multi owner businesses, then names like "Smith and Associates" or "Jones and Sons" will work well. If we have a niche (we will talk more about this in the next part) there is usually a key word like "automotive" or "remodeling" or "tool & die" that will be in their name. This question is all about where you can find them, and if their name will have the information to identify them for you...then its a directory of any kind that will help uncover where they are.
- Who knows them?
This is a related question, because we need to keep relationships at the center of our thinking. You may already have all the relationships you need for your agency to jump into this target market, but you may also realize that there are a few key people that could make a big impact on your initiative. It is helpful to think of the inputs, outputs, service and support that may be connected to your group. As you look into a specific commercial target market - is there a CPA that handles this market more than another? It might make sense to find that person who knows everybody - every town has one - and ask them - Who knows the people you want to most connect with.
- How would I be able to help them more than the other agent down the street?
Brutal honesty is the best policy here. Don't try to spin up some kind of gimmick. Dig deep and really define what you can do to serve them better. Many times, this can be as simple as doing what you say you are going to do by the time you originally agreed to do it! (I can assure you that would be enough for any contractor I've ever worked with.) We actually hired a painter one time because he was highly recommended - because he showed up to paint on the days, he said he would. We never even discussed the quality of the job he did. Keep in mind this commitment of being the best at something requires buy in from the top to the bottom of the organization...every member of your team has to be on board with the commitment required to be able to make the claim. While it is always better when the customer just notices the difference - you will need to bring your differentiating features into the spotlight of your marketing and communications with prospects, centers of influence and existing customers. Once folks see the difference, the word will travel, and others will begin noticing without you drawing their attention to it.
Your value proposition is what attracts your customer. The value proposition is the solution you afford, the promise you make and keep. It is the reason why someone buys from you. Establishing your value proposition can be a driving force for growth.
So, where are we?
We know what our best customer looks like; we know where to find them and who can help us; we know what we can do to help them more than anyone else. Now for the inconvenient truth - not all prospects in our market are created equally! It's important to build a method of rating the quality of the opportunity that each prospect presents to your agency. Like most things in life - working off a 5-star system is simple and effective. Identify the 5 key characteristics of the perfect or ideal customer. An agency that offers both property and liability insurance as well as financial services might award a star for any business that has employer sponsored health insurance, another for an employer sponsored retirement plan to go along with the star for the business commercial package policy and another star for the personal insurance of the owner or key contact at the business. Those 4 stars are very specific, and the 5th star could be based more on the culture/personality fit of the customer with the agency. An agency with a focus strictly on personal lines might use a 4-star system, giving each line like home, auto and other (umbrella, boat, motorcycle, etc.) a star of its own and reserve the fourth star for the client's fit to the agency. Many agencies will use a rating system - A, B or C - to give some ranking to the quality of the customer, but here the bulk of the rating is based solely on the number of potential lines of business that can be placed with the customer. Other factors like size, age and geography can also influence the discretionary star. Regardless, build a rating system and apply it to every opportunity.
Do I need to pick a niche?
It is safe to say you don't "need" a niche, but our experience would suggest you WANT one. Defining the best customers for your agency becomes clearer when the agency is focused, and often a niche will help the agency focus its expertise on a certain type of customer that helps each of these questions get answered with more specifics and details. Side note for agencies looking to add producers: An agency with a well-defined niche can often find faster success for new recruits, especially younger producers, because the universe of information to learn and digest is narrower. You also find that people who like the specific areas of focus will surface more easily and present themselves as the right candidate for the job to join the agency. Niches don't provide a guarantee of success in this program or with younger or newer producers, but aligning passion, capacity and resources properly can likely increase your odds of getting good results.
Quantity or Quality?
All the work you have done upfront to define the who, where and how will make the next steps more automatic. Reach out to meet as many of those people that could possibly fit in your target market as possible. Use the rating system to sort the good ones from the better and best ones. Every connection could lead to another opportunity that was never contemplated when these plans were outlined. Timing is a critical factor that often gets overlooked. The saying, "Timing is everything" holds true for just about every opportunity. Doing it better and knowing the right people to reinforce your message will always need to meet favorably with the right timing for the customer. Don't let bad timing now be the stumbling block to momentum. Keep working the process and find the right way to build the follow up system (more on that later) to make your offering available now and until the timing is right. Every customer has their own priorities - some of them are flexible and some are not - just think of how a CPA firm runs in the first quarter of the year...hard deadlines, understaffed and work piling up. If you find consistent timing issues in your niche or some regular interval of availability, adjust your system to better take advantage of those situations to deepen your relationships with your key influential customers.
Where do I find quantity?
This is a task that never goes away and requires a regular disciplined pursuit. You need to build a list. Go back through all those resources you consulted to answer the earlier questions...who has a list and would be willing to share it? Is a list available in some form for the group you are interested in working with? Often associations, conferences and chambers can provide a list, but make sure you comb through the list for the right fit potential customers. Sometimes a list is long - over 1,000 names of those who attended the conference and sometimes a list is short - the 3 people that fit your focus the CPA will introduce to you. Both lists are valuable and should be cultivated with a high degree of professional persistence. We have found that many of your existing customers will have a list of their own they are willing to share. Maybe it is from the conference they just attended. It could be a trade association directory they picked up last month or the one they get next month when they renew their membership with the group. The more people who know what you need to help your business to remain successful, the easier it is to find what you need - because others will be making it available to you - sometimes without even having to ask!
What should I tell them?
Now that we are finding people that fit our model in all the right ways, it is important to help build a compelling reason for them to choose you. The idea of "selling" someone insurance is outdated and unrealistic.
People don't buy insurance...they more often buy an insurance agent's time who provides it for them.
Educate them on how you can meet their needs better than anyone else. Relate to them using stories of situations - like theirs - that highlight the value they want in the relationship. Underinsured/Uninsured motorists’ coverage is not very exciting on paper, but what it does to help protect them if someone only has minimum limits is very compelling. Tell them a story about the last person who had $40,000 in hospital bills and the at-fault driver only had $25,000 of liability coverage. Tell them the story about the last claim that required some "intervention" during the hazard, like the tarp that got placed on the roof before the next rain came and did more damage. Use stories that answer these questions:
- How did your help make sure the client had what they needed in those situations?
- What role did you play the day of the loss that made it easier for the customer to bear?
- What role did you play prior to the loss that properly prepared them with the right coverages?
Most importantly, tell them why you want to help them - specifically! Make sure you can tell the story of why you are in this business and proud to operate as an independent agency. Being a real person that is relevant to the customer in a way that builds a strong connection of care and support will provide a compelling reason for them to choose you, and then you can work out the coverage options that make the most sense. Let me encourage you to be as specific as you can with these examples of how your agency has helped others over the years.
Give these stories to your newer producers and newer employees to take pride in the work they get the privilege to do by being a part of this agency. Owning these elements of your work will dramatically improve the energy and enthusiasm in your current agency culture. If you are doing it right, everything you are telling the customer will be felt already when they walk through your door or meet other members of your team. (My mother once told me you have 2 ears and 1 mouth. What she meant by that was I should probably listen more than I talk.) If we stay true to this philosophy, and truly listen to our customers and prospective customers, we can learn everything we need to know to fill their needs.
What should I do to follow up?
We have the simple answer and the more involved answer, so buckle up! Let's tackle simple first - you have a very narrow niche or maybe offer fewer lines of business...your customers are likely very similar, and your follow up material can be the same for all of them. An email-able piece that tells a few more example stories of who you are and what your agency is prepared to do on their behalf. It is even better if there is something to leave behind at a meeting that gives them a little more BUT further encourages them to want to learn more. If you have administrative support, bring them into the process and help them connect to the value of the work that is needed to shepherd these individuals into becoming customers.
One significant pillar - the more involved answer - of your process will be disciplined consistency. Establish your process for follow up and stick to it. Track your activity to identify adjustments that can be made to improve your results. These key components will build a system that empowers momentum to surge within your agency. The more deliberate you are on attracting the right client to your agency and working with the right people to help you connect with the right potential customers, the more this new momentum will play a part in drawing people into your agency to work, to become customers and to connect.
What do I do next?
With a good process, materials, rating system and defined best customer...You are ready to move your agency's productivity to the next level using the Brand Ambassador approach to grow your book. The program will utilize all these key elements that have been identified thus far to increase the number of opportunities your agency will have to write new business.
We cover this approach in our last installment of the Brand Ambassador.
When trying to manage or grow an agency - it is important to be able to answer the question - Who is your customer... I have only worked with a handful of agencies that could answer this question in the beginning of the process, BUT all of them could answer it in the end – confidently and accurately. A good answer has specific attributes that help to bring clarity around the agency's value proposition and becomes the measure to use in evaluating opportunities as they are made available. An example of the answer that we will work to formulate:
"My agency's customer is a family buying home and auto coverage from us. Their average age is 52. They live in a home valued between $250,000 and $600,000 and typically have one car per driver. They live in this county and have been with our agency for more than 3 years."
Understanding your customer or “Perfect Client Profile”, allows you to drive the customer experience. Understanding your customer’s needs positions, allows you as the agent to provide solutions. Whether through education or additional services, knowing your customers’ needs creates a relationship that transcends beyond the sale of insurance products.
It would be great to add more details to that description like "They are referred to us from current customers." or "They started with our agency by buying a life policy for their children." However, in the beginning - we will aim for the general level of description that holds a few details and add more details as we go.
Before we can answer this question for our agency, we need to be able to answer a few key questions that contribute to that statement. So, let's ask a few questions to help figure this out:
- What do people buy from me?
If we look at the book in the agency...have most people bought their home and auto from the agency or is the agency more focused on small commercial type risks. You might even need to focus this question a little further - what do they buy first? If your agency has built a name for providing auto insurance for youthful drivers - that could be the first policy you sell the family, but in the first 24 months they are a customer, you are picking up the other autos and home policies as well.
In the end, you need to know what they buy - all of it - but knowing what they buy first can help throughout the process as well. It would also be good to look at what your current carrier partners are providing for you to sell. It's safe to say that most carriers are not competitive on everything from the $100,000 to $10,000,000 home. Some like values under $500,000 and others like values between $500,000 and $2,000,000. The age group of the customer also plays into who they are, and which markets are interested in providing them insurance.
Growing an agency should be deliberate, predictable and sustainable. The consultative approach to relationship building and being recognized as a resource will offer a high level of certainty to the decision-making process. Many of the key parameters will center around the products or attributes of the risks, but never lose sight that the relationship with the client is always the key element of every successful agency.
- What do they have in common?
Besides having the best agent in town! Often, I find agents have not taken the time to look at this idea...usually there is a common thread among the clients of an agency. When you look at your book - do most of your customers go to the same church? Do they have kids that play sports with your kids? Do they all have some kind of connection to the long history of Rotary involvement from the agencies multi-generational involvement? Try to identify what is common within your book. Case Example: I was hired by an agency to do some consulting to better understand the differences between the books in their seven office locations. Many of these locations were situated in towns of similar size and geography. Each one of these offices had been a separate acquisition over the last 30 years of the agency's history. We found that out of all the offices, they wrote about 500 motorcycle policies, but more than 300 of them were written out of one specific office. There was a simple reason...the retired principal of that one office location had been a long-time member of a motorcycle club and had done a good job of letting folks know what he did for a living. This doesn't mean the new principals need to go buy a Harley, but it will suggest that there is something shared by more than 300 of the policy holders in that agency.
Business relationships many times originate from social events, memberships to groups or organizations that allow us to participate in events that support our interest. In doing so, we can build relationships with those who we share commonalities with, offering a much easier platform to nourish business growth.
Most multi-generational agencies will see that different groups of clients emerge within the book. Those from the previous generation - the legacy business, and then those that have been added from the younger generation. These books within the book, tend to center on the different personalities and interests of the producers/principals that helped to build them. The key outcome in answering this question is to better understand if there are common threads of membership, personal interest or characteristics that would help you better meet their needs, find more of them to engage or even possibly anticipate what they will need next!
- Where do they come from...or better ...How did they get to me?
As we work to handle the business that is right in front of us at the moment, many agencies will try and answer this question, but they don't always track or record the info for future review. We like to say not all opportunities are created equally, and that applies to referral sources, sports program adds, billboards, radio spots, you name it...not all of them provide equally good results to the same agency. Many agencies deploy a multifaceted approach to their marketing in the hopes of catching their customers attention with one of the tools they use. If we knew where our customers are coming from, we would know what forms of marketing were being successful. If you seem to write more new business during the baseball season than the football season, it is possible the banner on the outfield wall at the high school was more effective than the quarter page ad in the football program. You need to ask, "where did you find out about us", because it could be one family on the baseball team that is your client and saying nice things. They could be the reason, and not the banner. If you don't know where they are coming from, then you need to start asking. Ask your current customers if they remember how they got your info in the beginning or why they chose your agency to work with.
Business success is based on the measuring, managing and adjustment of results. Feedback is an important feature of attaining valuable information to assess. What we think is the beginning, and what “THEY” think is maybe very different.
What have we learned?
Well, if you know who your customer is, what they buy from you and how they came to be a client...then you are well on your way to understanding what you have inside your agency. For many - that's enough! They have determined that what they have is what they want, and they are happy to keep that going. There is probably a sign on the principal’s desk that reads "If it ain't broke, don't fix it". For others, they realize the agency they are trying to build needs a little better or different direction to reach the success they have planned for their future. Too many times we see agencies frustrated with their results because they can't answer these questions adequately.
Where can we apply this?
For the rest of this discussion we will address the key pieces to helping good agencies stay solid with the added element of helping agencies that want to take the next step - meet the challenge of growing and building the agency they see in their future. We regularly get asked to help agencies that are bringing in the next generation to provide some help and direction.
While working with an agency in southern Ohio a few years ago, the principal told me that the office staff, agents and himself, would sit together for lunch in the conference room. You would think this was a great way to build a team environment, and it was...for everyone but the principal. He sat at the lunch table and looked at his two young boys, one newly married and the older one expecting a child, eating their lunch as members of the agency and felt the weight of their mortgage payments on the future cash flow of the agency. In that moment, he realized they needed a plan to help grow and establish the agency at a new level that was more than capable of meeting the income needs of all its current and future owners.
Every time the agency takes on the responsibility of adding another generation of leadership, the revenue of the agency adds the challenge of meeting the income needs of those individuals. By diving deep into these ideas, the agency can navigate the path forward successfully…
Over the past several weeks, I’ve had the pleasure of hearing from a few leaders in our industry, and I wanted to share five key takeaways I got from those sessions. Enjoy!
1. Data is the new currency in our industry
Syd Rowe, who navigates the marketing side of things at b atomic, gave us a few tips and tricks for our marketing endeavors. She said that marketing within the independent agent channel relies heavily on big data. That, coupled with the need to understand the potential fears of those you are marketing to so that you can address those issues right from the get-go, are some of the pillars of what it takes to be successful in the industry.
2. Use and maintain a good NPS score for your agency
Speaking about big data, Matthew Smith at Rocket Referrals understands all too well the importance of using and maintain a good NPS score for your agency. The RR teams helps agencies understand the level of satisfaction of their clients and then use that information to advance the business and maintain a healthy and vibrant book. Happy customers can drive future business.
3. Pick a niche
Justin Buren, partner at INSocial Risk Advisors, shared some cool perspectives on his experience as an independent agent. His agency’s success is tied back to the idea of picking a niche. INSocial works with several niche markets like fitness centers or technology-forward companies which all happen to be things that he or folks on his team are passionate about. Your passions can be a wealth of opportunity!
4. Establish and sustain connections
We spoke with Megan Wetli who works in commercial lines at Encova. One of Megan’s messages that we can all benefit from was on the number of opportunities for connections that are in our industry. There are so many potential partners and resources out there! Make sure you take advantage of networking opportunities because those relationships are essential to our continued growth.
5. Maintain an active LinkedIn account and a well-established professional image
Social media is worth investing some time in! I know that sounds a little crazy, but hear me out! Jess Hall from Ohio Dominican University works closely with candidates to prepare them for their next position as well as multiple businesses who are seeking qualified candidates. She spoke on the effectiveness of having an active LinkedIn account. Not only does it tell the business community who you are, but it’s a great way to communicate the work that you are doing. It’s also a fantastic platform to find and maintain those new connections!
I have more exciting stuff in the pipeline in the next few weeks- stay tuned.
The Independent Insurance Industry is going through a lot of changes right now. Managing an agency through these changes can be tough. With an increasing number of challenges for independent agencies – like perpetuation, hiring needs, qualification thresholds, etc. – it’s important to be proactive in taking steps to manage these issues to make sure your agency stays relevant and profitable in the industry. We believe we can help.
With the constant battle for profitability in their minds, most carriers are changing their programs to keep up and maintain their status. These changes are then impacting you as an independent agency, and your profitability. Secured Advantage is here to help you, the agent, with any challenges that come up from these changes. If your agency is big, small, or any size in between, we are here to help you win when you do business with us.
Let me share with you some examples that show how we have increased many agencies’ profit-sharing in the past. If you have any questions, we’d be happy to offer answers, clarification, or put you in touch with these agencies!
Agency #1
Our first example is a credible independent agency that shares one core carrier with Secured Advantage. Even though they had a great loss ratio for the year, due to recent structural changes in the carrier profit-sharing model, the agency was slated not to receive a check at all.
Since they are a SA member, they received over $14,000 in profit-sharing this past year. This is a common story in the SA world, and we would be happy to share this opportunity with you and your agency.
Agency #2
Much like the first agency in the case study, due to recent shifts in the structuring of the profit-sharing model for one of their carriers, their profit-sharing check was going to be significantly less. In this scenario, they would’ve ended up with only $15,000 when they wrapped up their year.
Being part of SA, they ended up getting an EXTRA $19,000 in profit-sharing, bringing their total check to over $34,000 - that's 127% more in profit-sharing!
Agency #3
This agency has a book with two of our carriers. Though most of their books are profit sharing eligible on their own and are never in real fear of dropping out of eligibility, they understand the advantages of being a part of a network like Secured Advantage.
In total, their profit-sharing check almost doubled by being a member of SA, going from $35,000 to just under $70,000. Their profit sharing advantage was 200%!
Are you ready to join a network of like-minded agencies to bolster your profit-sharing check? Are you a small agency ready to finally receive the recognition and reward you deserve for all the hard work you do? Or are you a bigger agency considering how much of an impact doubling your profit-sharing check would have on you and your agency?
Let us know if you want to speak directly to any of our member agencies. They all have a unique story and have volunteered to share why they remain members of our network here at Secured Advantage.
In continuation of our series in which the IRMA students reflect on their experiences from their first semester, we now get the chance to hear Kayli Carter-Little’s story.
Kayli is a double major in Business Administration and Risk Management and Insurance with a minor in Human Resources. She is a non-traditional student who is going back to college for another degree since she decided that being a high school French teacher wasn’t for her. She worked at a title insurance agency for three years, starting as an Administrative Assistant and working up to a Finals Specialist and then a Purchase Processor. She decided she wanted to go back to school to expand her knowledge in the business world. When she saw the IRMA internship opportunity, she jumped at the chance to expand on the experience she had gained from a parallel field and changed her major to include RMI.
Kayli was most excited for the opportunity to obtain her Property and Casualty license, which will open more work opportunities in the coming semester as well as the job market after graduation. The costs of the study materials and testing have been reimbursed through Secured Advantage’s partnership with OIA, so they were no cost to the interns. Kayli said, “Now that I have my license, I’m really looking forward to starting work on Encova’s book of business and with their customers.” She was also excited for the summer internship opportunities and was very thankful for the small yearly scholarship provided by Encova, which is in addition to the hourly wage!
Having a clearly articulated mission and vision are important to IRMA, and Kayli believes that really came through. “By reading “Start with Why” by Simon Sinek and “Good to Great” by Jim Collins, we were able to discuss at length the values of the program and put serious consideration into our own personal “whys”, what drives us,” Kayli explained. IRMA’s “why” is to share the passion for the value and opportunities that are within the insurance industry and provide students with a positive experience to gain the proper perspective in the insurance industry. She believes that the regular guest speakers have really highlighted this “why”. They have helped the interns explore some of the different aspects of the insurance world that aren’t obvious to an outside observer. Additionally, Kayli only has positive things to say about the leadership and support they have provided. Everyone invested in the program has been incredibly helpful in guiding the interns through the unfamiliar territory of the insurance world. Kayli said, “I cannot emphasize enough how important it is to me to be working with supportive team players who are passionate about what they do. I’m very thankful for the opportunities provided here at IRMA.”
Independent agents are all fighting a battle everyday - a battle to make a profit in their agency. This battle is very similar for many independent agents, and we all want each other to succeed for the strength of our industry.
Carriers and insurance companies are trying to grow their businesses and as independent agents, we are part of their growing process. We, independent agents, are willing and want to help the carriers and insurance companies grow, but it makes the battle for profitability a bit harder on us. We want to be able to partner with the carriers to make this growth happen, but somehow they end up with all the power in the relationship.
Carriers are going to have a lot of power, there is no way around that. We have to meet customer needs AND the carriers needs to grow our books and create a profit. Carriers aren’t the owners of our businesses, and not responsible for our results. However, the way they use their power in the “partnership” can bring a burden on the agent that is tough to carry. There has to be something the independent agency can do to help bring some balance to their situation.
What’s Missing?
We need something, some kind of tool, that gives us back some power.
We need that seat at the table the independent agency principal had in the past.
We need that seat now more than ever, but unfortunately many agency principals today are settling for these paths instead:
1) Selling out to large national firms
2) Giving up their independence by joining an aggregator of some kind.
These don’t seem to be the best options out there - they lead to the loss of independence and we don’t want that. We need a solution that doesn’t give up on what we have worked so hard over a lifetime to create.
As things stand now, we aren’t magically going back to the good old days. The problem is too big for that and independent agents need more options. Here at Secured Advantage we think we have found a solution. It doesn’t require a loss of independence or giving up control. It does help win the battle for profitability. We will cover that in part 2 of this piece, but you can click here to read that now. The Real Battle for Profitability: Part 2 - The Solution
In our previous post, we discussed the problem independent agents are facing in their battle for profitability. If you have made it to this post that means you want to know the solution to this problem!
Aggregators (not the solution but a must to understand)
We left off discussing aggregators. (What are your thoughts on aggregators? I’d love to know - email me your thoughts)
There are several different models of aggregators to choose from. However, these aggregators don’t fit in with many of the traditional independent agencies’ values. They don’t seem to be the solution. Certainly not for an independent agent who has spent a lifetime building their business.
I choose to look at the core of the opportunity and ask these questions:
1) Do the founding values of the organization match the culture of your firm?
2) Who wins when something good happens within the new relationship?
3) What’s lost if it doesn’t work out?
4) What’s the real cost to my agency to achieve a new level of profitability?
These questions might seem obvious, but the process of answering them could be enlightening.
After exploring those questions above Secured Advantage realized there wasn’t an aggregator that could provide the answers to make independent agents feel safe or secure. These questions guided us down the path of how to win the battle for profitability.
Secured Advantage Built the Solution
The battle for profitability could be won by creating an agency NETWORK, that could answer these questions and make independent agents feel safe and secure.
That’s why we created Secured Advantage, a network built on three core principles, uncommon to your typical aggregator.
Secured Advantage is an organization founded by an independent agent, like you, and our goal is simple:
To build a network of historically profitable agencies that maintain their complete independence, and who can bring the right strategy to help each other protect and perpetuate the life’s work of an independent agent.
Independent agents have more power together. This network gives independent agents power and that seat at the table that they have lost. It is better to work together and share profits rather than lose the battle for profitability!
So far, we’ve helped over 85 agencies feel what winning the battle for profitability is like!
To learn more about our story, read through our site or get in touch. You might also sign up to our email list to get useful industry info and profit-building tips on a regular basis.
Avery and Foster recently interviewed each other and discussed their first semester experience as interns with IRMA.
Foster a senior and Avery a junior, both study Insurance and Risk Management at Ohio Dominican University. Here’s their conversation!
Avery Rice: First semester of the IRMA program went by fast…. what were two things in the last 16 weeks that stuck out the most in the program?
Foster Martin: For me, the official launch of the IRMA program was my favorite part of this semester. We had the pleasure of meeting and interacting with people from - Encova, ODU, Secured Advantage and all the influential people who helped establish the IRMA program. Not only do I have this sense of pride for being one of the first interns to take part in this program, but it was nice to see that so many people cared about this new venture.
The other exciting thing as far as the 1st semester goes, was the team meetings we had as a group every Wednesday afternoon. In these meetings, we discuss several important items from the week. We talk about what we have learned that week, work we have done, and what we are going to do in the future.
AR: It’s great to be able to say that we are the first interns to take on this new program-and from the conversations that we’ve been a part of, we can clearly see the direction the program is heading and it’s truly humbling to be part of that journey.
FM: Agreed! I feel like we have been very successful with the work we have done. It gives me a sense of accomplishment knowing we have helped the groups that have partnered with IRMA. As a group, we have learned a lot about insurance because of our exposure to doing work with Encova and Secured Advantage, learning from our professors at ODU, and hearing from the guest speakers. I think with the experience and knowledge we are getting; we stand out among the rest of the students graduating with an RMI degree.
AR: Speaking of guest speakers, we had some great sessions in the fall semester from partners of SA and I know we have a few coming up in spring semester.
FM: That is one area that I am really looking forward to this semester. IRMA has so many connections with OIA, Encova, ODU, Secured Advantage, and more. I feel like there are a lot of people to meet and learn from. We have had guest speakers come and talk to our IRMA group in the past and I always enjoy learning from them.
AR: Sounds like you are really enjoying your experience with the internship and with the insurance industry so far. I’m assuming you have your mind set on the Insurance Industry at this point.
FM: actually, I accepted a job that starts this summer as an underwriter for Liberty Mutual. I’m really looking forward to continuing my growth in the Insurance space with this new position. With how much I am enjoying this internship, it’s just more proof that Insurance is where I want to end up. Also, IRMA is doing a great job of getting me ready for my first position in Insurance.
AR: Wow that is awesome to hear, congrats! From what we have covered so far, it’s clear that you have a lot on your plate and speaking from experience- classes, working for IRMA and being on the school’s soccer team takes a lot of effort to juggle all three.
FM: You’re right- it's hard making everything work. It takes a lot of hard work and time management, but it is manageable. A lot of times I have to hurry from one thing to another but that’s what happens when you work an internship, play a sport, and are a full-time student. I just have to make sure I am prepared for my day. My manager, coaches, professors, and others also do a good job with working with my schedule. Though it’s hard to make all three work, it is still very possible to balance all of them.
To learn more about IRMA, check out the link below.
Insurance & Risk Management Academy (IRMA) | Ohio Dominican University
Columbus, OH – The Encova Foundation of Ohio has committed a gift of $1 million to Ohio Dominican University (ODU) to establish an endowment fund that will provide scholarship support for students who study in ODU’s Risk Management & Insurance (RMI) program. The gift was announced during a ceremony that took place on Oct. 21, 2020, at Ohio Dominican.
Encova also has committed additional support to fund the creation of a new Insurance & Risk Management Academy (IRMA), which is located on ODU’s campus in the Bishop James A. Griffin Student Center. Overseen by industry professionals and staffed by ODU RMI students, the academy will enable students to gain real insurance industry experience through partnerships that will be established with carriers and agencies throughout Ohio.
Through IRMA, students will be introduced to various areas of specialty within the insurance industry in which they can seek employment, including sales, claims, and marketing. During their experience in the academy, they will gain relevant work experience both on and off campus prior to graduation to help them prepare for full-time employment. IRMA also will sponsor any professional licenses pursued by its student-employees. To learn more about IRMA, visit ohiodominican.edu/IRMA.
“We are very excited to support Ohio Dominican University though an endowment fund and the creation of the Insurance & Risk Management Academy,” said Encova President and CEO TJ Obrokta Jr., who also serves on the board of trustees for the foundation. “We strive to make a difference in the communities in which we live and work, and this contribution helps both students wanting to get into the industry and independent agencies. We look forward to seeing what this partnership will bring in the years to come.”
“One of the most important industries in Ohio that have a bright future and a great need for qualified employees is the insurance industry,” said ODU President Robert Gervasi, Ph.D. “This generous gift by the Encova Foundation of Ohio will remove financial barriers to help ensure that our talented and enthusiastic students have the financial resources they need to pursue a rewarding career in this growing field. We are grateful to the Foundation for its investment in Ohio Dominican’s students, and for our partnership with Encova and Secured Advantage for their help in managing this innovative new center on ODU’s campus, which will prepare our students for success while also supporting our local insurance partners.”
ODU established a major in Risk Management & Insurance in 2014 in response to a workforce study conducted by the Insurance Industry Resource Council (IIRC) that identified a significant workforce gap. According to the U.S Bureau of Labor Statistics, approximately 400,000 individuals are expected to retire from the insurance industry within the next few years. According to a 2016 study by Columbus State Community College’s Center for Workforce Development, between 2016 and 2024, the Ohio-based insurance industry will need to fill approximately 29,000 jobs.
In addition to a bachelor’s degree in RMI, ODU also offers an RMI concentration in its MBA program, as well as certificate. ODU’s bachelor’s and master’s RMI programs are available 100% online.
About the Encova Foundation of OhioEncova aspires to be an outstanding corporate citizen in all locations and markets they serve. The Encova Foundation of West Virginia and the Encova Foundation of Ohio support local causes that are strategically managed and mirror the values and interests of Encova’s associates, agents and policyholders. The Encova foundations focus on improving communities and families, promoting education and encouraging wellness. Embedded in their focus is a commitment to helping children succeed, improving communities and supporting industry initiatives.
- Tom Brockman, ODU Associate Vice President for Marketing and Public Relations
Why are we partners? Why would two insurance networks want to work together?
Great questions with simple answers….
Let’s start with a quick description of what or who each partner is:
Secured Advantage – we provide an opportunity for established, historically profitable books to remain profitable in a changing industry environment. We focus on five core carriers and with members primarily in Ohio and the surrounding states. SA consistently delivers excess profit sharing to their members beyond what they would have earned on their own. Through meetings and events hosted throughout the year, we cultivate a member-to-member connection for idea sharing, developing new ideas and providing perspective and advice. We assist agencies in finding a perpetuation plan that fits their agency best and preserves the role of the independent agent and agency in that community and industry at large. The member agreement provides a simple exit path with no handcuffs, blackouts or non-competes.
Indium – provides market access for property and casualty agencies throughout the country. Currently contracted with more than 19 different insurance carriers and programs, they further assist their members in agency growth, marketing and management strategies through proprietary programs and resources developed by agents, for agents. Through a variety of agency-focused meetings and events hosted throughout the year, they develop a sense of community for the agents by fostering idea sharing, developing new products and services, and providing perspective and advice. They don’t have any handcuffs, blackouts or non-competes in their partnership agreement. With small levels of total combined carrier volume, agencies become profit sharing eligible within their program. They encourage agencies to grow and build their books, and when feasible, promote them to their own direct appointments with their common carriers – the very books Indium helped the agency grow. It’s these elements to their contract that make theirs the most agent-friendly in the industry.
Additional value both groups provide to their agency partners outside of their own core business.…
- Provide a group discounted E&O program.
- Provide access to tools and resources to assist in agency sales, customer loyalty and retention, and marketing.
- Provide communication centered on best practices in the industry.
So– Secured Advantage – Why do we value the Indium relationship? SA members need a trusted partner to help provide access to markets for opportunities that don’t fit in the appetite of the agency’s core carrier line-up. We wanted to provide a solution ourselves, but as we moved into the process, it was taking us from our core business focus. When we looked at the landscape of the industry and where market access was a primary offering, we wanted to find a partner with the fewest hurdles to get started and the fewest handcuffs to get divorced. Indium has a very low fee structure, a simplified commission split on business they write on behalf of the agency and an agency first culture that fits well within the SA member focused environment we have built. We found Indium did not compete with us on our core business; we had a common carrier that we could help support and a good percentage of our members already had connected on business with Indium in the past.
How about for Indium – Why partner with Secured Advantage? Their answer here comes from
a couple different perspectives. First, it matters who they do business with. As an organization founded, owned and led by independent agents, they want to partner with organizations who have that same DNA. They recognize that we understand independent agents and put agents first in everything we do, which aligns with us perfectly. With that in mind, knowing that the members of SA needed a market access solution and SA was willing to endorse and support the efforts of introducing SA members to Indium, it made for a perfect fit. As our partnership has grown and our teams have worked together, the SA partnership has helped them navigate different opportunities in our industry successfully. Finally, as Indium strives to bring the best options to their Indium member agencies, if they have a historically profitable book with a Secured Advantage core carrier – they want them to understand the advantages of partnering with SA, and have found their endorsement encourages those agencies to take the time to give it their consideration.
What’s been the results – Both organizations have found new members – good solid relationships - from the introductions to members from each other’s organizations. Good books, good agencies, good members…both organizations have built their member networks to include the highest quality people and resources.
One emerging perspective from the agencies that are a member of both organizations…those who find the most value from both organizations use a refined approach to their carrier relationships. As most agencies will try to limit the number of markets they are directly appointed with in the hopes of maximizing the profitability of each relationship and limiting the frustration and stress around managing different carrier systems, process and contacts, the agencies maximizing the value of SA and Indium will further reduce the direct appointed carriers to accommodate Indium to be treated as a “carrier” of its own. In one specific agency – they have 3 direct appointments and Indium. We refer to this approach as the 4th carrier structure. When new business is being quoted, the “4th carrier” (Indium) is included in the process, and with that multiple quotes are provided from the one submission. If one of the 3 core carriers is close on coverage and price, they likely get the business, but in a growing number of cases, Indium is getting the opportunity to bring their expertise and reach to help substantially improve the offering that the agency would typically make available to a customer.
By treating Indium as a carrier relationship, the appetite guide just got bigger and the agency’s ability to compete for every piece of business just went up. Having access and the support of the Indium team are transforming how small and mid-sized agencies compete in the market. These agencies are moving within their community with confidence, knowing that good risks can be written effectively by their office and bring value to their customers.
Within this partnership and each of these member networks, it’s not about who has more members, discounts or programs, we focus on meeting the needs of our members and helping good agencies join our network. With our focus there, our members will reap the rewards of our efforts and every member, organization, agent and customer get a win all the way around.
As always, let us know if you have any questions and how we can help.
Thank you for your partnership and Stay Safe!
Thanks, Ted Rusinoff
To learn more about our story, visit www.secured-advantage.com. You can also email me back at ted.rusinoff@secured-advantage.com, or send a note to my partner Tim Buren at tim.buren@secured-advantage.com.~
Last week we had a great conversation with David Levy about
Building Agency Strength through earning, building and keeping Top of Mind with
your customers. You can re-listen/watch here.
That was only Part 1 of the discussion – this week, we will continue the discussion for
Part 2 answering the question about how do we engage now as things re-open and
our communities try to find their “new normal”. You will learn how to take the
Top of Mind position and empower your agency to really own your relationships
with the customer.
As always, let us know if you have any questions and how we
can help.
Thank you for your partnership and stay safe!
Thanks,
Ted Rusinoff
To learn more about our story, visit www.secured-advantage.com. You can also email me back at ted.rusinoff@secured-advantage.com, or send a note to my partner Tim Buren at tim.buren@secured-advantage.com.~
Our members got the chance to listen in on a conversation I had with Matthew
Smith with Rocket Referrals. We discussed the research he and his
team conducted on which strategies are working to keep the business coming in
when clients aren't going out.
Rocket Referral is a valued partner of Secured Advantage and the information that they provides, comes from a place of deep research and experience from the 2000 or more agencies across the country currently working with them.
Click on the link below to view the conversation that I had with Matthew on this topic,
https://rocketreferrals.wistia.com/medias/9elxgkqfa4
As always, please feel free to reach out if I can help in anyway.
Thanks,
Ted Rusinoff
To learn more about our story, visit www.secured-advantage.com.
You can also email me back at ted.rusinoff@secured-advantage.com, or send a note to my partner Tim Buren at tim.buren@secured-advantage.com.~
Our main focus has been on information about our customers. However, a 20% plus increase in profit-sharing is becoming standard for many agencies in our industry.
As insurance carriers continue to adjust their programs to match the mandates that allow them to find profitability for themselves, Secured Advantage is helping the agent to adapt and overcome the challenges that these changes present.
As the independent insurance industry continues to evolve, it is becoming tougher to manage and the opportunities seem scarcer. With an increasing number of challenges (perpetuation, hiring needs, qualification thresholds, etc.), it is important to be proactive in taking steps to manage these issues to ensure your agency’s relevance in the industry. We believe we can help.
We are helping agencies (all sizes) to successfully advance, when they do business with SA!
The following are examples of how we have changed many agencies profit-sharing in the past. Please review them and let us know if you have any questions. We’d be happy to offer answers or clarifications!
Agency #1
A credible independent agency with one core carrier from Secured Advantage.
This agency had a great loss ratio; however, the agency was not eligible for a contingency payout that was too small.
But because they are a member of Secured Advantage, their $270,000 book produced a profit-sharing check of $7,000! And since their joining of Secured Advantage over four years ago, they have earned over $37,000 from our program.
Agency #2
A decent sized agency with a couple of carriers and no real risk of falling out of eligibility from profit-sharing with any of their core carriers.
One book in this agency, at one of the core carriers with Secured Advantage, was over $3,000,000 and their profit-sharing check doubled from what they were originally going to receive. This agency, on average, has enjoyed more than 30% better results with every book affiliated with Secured Advantage.
Agency #3
This agency has three common core carriers with Secured Advantage. All of their books are profit sharing eligible on their own, but the agency understands that their value goes up from being affiliated with a network like Secured Advantage. These three books represent less than half of the agency’s total volume.
For one of their books, the agency doubled their profit-sharing check.
For another one of their books, the agency earned a 17% excess profit-sharing check. Over their time with Secured Advantage, they have received close to $200,000 in total excess profit-sharing distributions.
Though it is easy to think of these examples as isolated incidences, we have about 80 members and they all have a similar story to those that I have just explained.
What would you do if you could increase your profit sharing checks by 20% or 30%
What kind of impact would that have on your profitability?
Let us know if you would like to directly speak with any of our member agencies. They have all volunteered to share their story and explain why they remain members of our network here at Secured Advantage.
Thanks,
Ted Rusinoff
To learn more about our story, visit www.secured-advantage.com.
You can also email me back at ted.rusinoff@secured-advantage.com or give me a call at my direct line 330.620.3559.
It is very important to understand who your customer is. Three important questions that we have discussed in previous blog posts are, “What do people buy from me? What do my customers have in common? How do they find me?” Another question that is equally important as the previous questions is, what my ideal customer looks like?
Insurance agencies need to be asking themselves these question more often. It is just not brought up enough.
You can look to your book of business to help answer this question. What is your current book telling you about who your best customer is?
You can look at your team/agency to help answer this question. Does your team/agency know who your ideal customer is?
We ask ourselves this question because often the clients we have are not always the clients we want. This can raise a huge problem. A customer that has been with us from the beginning might look very differently than the customer that joined recently and has a better total potential for embracing the full value being offered by the agency at this time.
It is important to understand what the best customer looks like today for you!
Secured advantage can help you identify what potential is currently untapped within your agency. We are in a great position to help you figure out the question of: What do my customers look like? If your customers aren’t hat you want then we can help you reach out to the customers you want with the resources we have.
Knowing exactly what your customers own, is another key piece in determining the ideal customer. You may have already outlined this answer when you defined your best customer. It's a separate question to make sure it is not overlooked.
The coverages they purchase are determined by what they own. You can't buy coverage on the boat you don't own. For commercial accounts, it is important to be specific on what kind of business they are operating. The more we can define what the best account looks like, the easier it is to go looking for them.
For the next blog- now that we can identify our best customer- we are going to talk about where to find these customers that we just described.
I enjoy helping our members—let me help you too. Email me at ted.rusinoff@secured-advantage.com, or send a note to my partner Tim Buren at tim.buren@secured-advantage.com.
Thanks,
Ted Rusinoff
COLUMBUS, Ohio — Two Ohio companies – Indium and Secured Advantage – are partnering to support independent insurance agents in securing better market access, increase revenue and business growth.
Both companies were founded by independent insurance agents who are passionate about improving insurance operations and supporting other independent agents by solving industry problems they have experienced first-hand.
Indium is a market access network that offers the most agent-friendly partnership agreements in the industry, along with solutions for agency growth, profitability, staff development, and perpetuation.
“Indium is always looking for strategic partners in the marketplace and Secured Advantage has a unique value proposition to independent agents,” said Chad Eddy, CEO of Indium. “This is a complementary service to our agents as well. As two companies founded by agents for agents, it only makes sense we work together to provide greater value to the independent agency channel.”
Secured Advantage is a partnership of independent agencies that allows each member to enjoy the benefits of a large operation – like contingency sharing, workplace benefits, and financial services – while retaining their own identity and remaining independent.
“Partnering with Indium provides expanded market access to our members from a first-class organization,” said Ted Rusinoff, National Sales Director at Secured Advantage. “We always look for new ways to enhance the independence of members, and Indium’s business model will accomplish that for everyone involved.”
The two organizations are excited to creating additional value for agents in the independent agency channel. For more information, contact Scott Richards.
About Indium
Indium (originally MarketSource Agency Network, LLC) was founded in 2005 out of the Ohio Insurance Agents Association (OIA). Everything Indium does is meant to challenge the established model of insurance, giving Indie Agents™ an edge now and in the future. In staying true to our founding principles, Indium is a leading market access provider whose focus is to facilitate enhanced revenue and profitable growth opportunities for our independent agency partners. We are still owned and directed by independent agents, and we support agency partners across the country who have placed over $50 million in written premium with our carrier partners. For more information, visit www.goindium.com/go-indie.
Over the past several blog posts, we have been discussing how to analyze your customer and your relationship with them, and how to use that information to better your company. Today we are going to examine how your customers come to be your customers. What brought them to you in the first place?
Tracking how your customers got to you is significant because it gives you feedback on how well your advertisements and marketing strategies are working. The easiest way to do get this feedback is to simply ask your customer “So how did you hear about us?” Was it from your Google or Facebook advertising? Maybe the billboard or radio advertisement? Do you have a referral program or they heard about you from someone that likes your services?
All of these are great options, but it is important to figure out which ones work best for your clients in your market, which will save you money. If you find out no one is saying they heard about you from your billboard, for example, you should reconsider that advertising option. You could decide to change the location or maybe change the advertisement that is being displayed. Perhaps it is best to scrap it entirely and double down on that radio ad several people have mentioned. Any way you want to look at it, the lack of feedback is in itself feedback that your advertising is not as effective as you might like.
Getting feedback from your customers also prevents assuming that your advertising is working because you see a correlating rise in business. Let’s say, for example, you see an influx of new customers during baseball season, whereas there are far fewer new clients coming in during football season. You may look at this and assume this means that your banner in the outfield was more effective that the ad you placed in the football stadium. However, making this kind of assumption without seeking out the data to back it up may cause you to miss the true cause to your springtime success: the family with a son on the baseball team who have been saying nice things about your services.
If you don’t know how your customers came to be your customers, don’t be afraid to ask! Ask new and existing clients what brought them to you in the first place. Their feedback will be essential in future marketing strategies. After all, business success is based on the measuring, analyzing, and adjusting to feedback. When you take the time to examine all of the facts and how they relate to each other, you may be amazed at what you find!
Next Steps
At this point, we’ve tackled the importance of knowing who your customer is, what they buy from you, what they have in common with each other and you, and how they got to you
For many, that information is enough; they’ve decided that what they have is all that they want, and they are happy to keep that going at a steady, unchanging pace. As the saying goes, “If it ain’t broke, don’t fix it,” right?
However, others may recognize that doing things the way they have always been done is not always the best policy. As Maya Angelou said, "Do the best you can until you know better. Then when you know better, do better." After reflection upon the questions presented in this blog series, they may find that their agency is not quite where they want it to be. Maybe this even means a change of direction in order to reach the success they have want for their future.
If you’re looking to take the next step towards growing your agency, contact David Levy for expert-level coaching in how to put all you’ve learned about your clients into action.
David Levy
Corporate Support Services and Solutions Group
info@csssg.co
(440) 544 - 5666
Another aspect to consider when thinking about our customers is if they have anything in common - besides having the best insurance agency in town, of course!
Try to find the common thread that links you to many of your customers. Do many of them go to the same church as you or have kids that play on the same sports team as your kids? You can use that information to attract new clients, and interest current clients in new policies.
A while back, an agency wanted to better understand the differences between the books of their seven office locations. Many of these locations resided in towns of similar size and populations, and each of them had been a separate acquisition over the last 30 years of the agency’s history. After some digging, it was discovered that there were about 500 motorcycle policies across their seven offices, but more than 300 of those had been written out of a single office. There was a simple reason for it: the retired principal of that office had been a long-time member of a motorcycle club, and he’d done a good job of letting folks know what he did for a living!
Of course, this doesn’t mean you need to go buy a Harley to get more clients. But it does show how your relationships can build business. You have the opportunity to build meaningful relationships, which cultivate trust. Business relationships often originate from attending events we’re interested in, staying active in groups and organizations, and engaging in other social gatherings. Therefore, keeping yourself involved in groups and events outside of work offers you an easy way to connect with others and nourish the growth of your business. Even when you are off the clock, you are always at least a passive representative for your company. Keep a business card handy in case someone wants to keep in touch or expresses interest about your business, since networking opportunities can happen anytime, anywhere.
Stay tuned for the next installment of this series, which focuses on how customers find you.
In our previous blog post, we discussed the importance of knowing your customer. This time, we are going to dig a little deeper into that by examining what they are buying from you.
But before looking at your customer, let’s start by looking at your carrier partners. Make sure you have a strong understanding of what your carrier are providing so that you know what you are selling to your customer. Knowing the limits set by your carrier partners can help you focus on potential clients that you can actually serve, and allows you target new customers.
OK, back to the customer! Knowing what your customers buy from you in addition to who they are can help you turn a single policy customer into a multi policy customer. Start by asking “What do people buy from me first?” If you were to look at your agency’s book, which types of needs would you see your agency meeting most frequently? Would you find that most people have bought their home and auto insurance from you, or is your agency more focused on small, commercial-type risks?
Let’s say you can provide good coverage for young drivers, and a family decides to go though you for their 16 year old’s auto insurance. As you build your relationship with them and prove to be a trustworthy and helpful resource, they may decide to switch all of their auto insurance policies to you. Also, once that teenage driver moves out into an apartment on their own, they will add on renter’s insurance through you, who they know they can depend on. Their new roommate is impressed by the things they say about your coverage and services, and switches to you, too. Thus you cater to the upcoming needs of the clients you already have while proving to new customers that you can serve them, as well.
Seek to build up relationships with your clients by presenting yourself as a valuable continual resource rather than a solution to a single problem of theirs, which will encourage them to return to you with their future needs. Growing your customer relationships – and your agency - should be deliberate, predictable, and sustainable. Knowing what customers are interested in buying from you at the start allows you to take the first step toward developing a relationship with them and meeting even more of their needs down the road.
Next, we will have a look at how your customers are connected, and how you can use those connections to draw in more customers!
This blog post is the first in a series to help you better understand and connect with your clients.
Today’s topic focuses on one of the fundamental topic that any business should know in order to be successful: who is your customer, and why is it important for you to know that information?
The customer is one of the load-bearing pillars of every business, and knowing who your customer is can be very beneficial in keeping that pillar strong. Understanding your customer base can help build a stronger rapport with current customers, create loyalty, and bring in repeat business. Those satisfied customers recommend your business to their friends and family, bringing new customers to your agency. You can also use the information about who your customer is to identify opportunities to appeal to new customers.
Begin with a basic, but specific description of your clientele. Start with questions like, “What do my customers have in common? Are they mostly families, or individuals? How old are they? Where do they come from? What do they buy? How long have they been with our agency?” For example:
“My agency’s customers are primarily families who want to buy home and auto coverage. My clients’ ages average around 52 years old, and they live in homes valued between $250,000 and $600,000. They typically have one car for each driver in the household. Most live in Summit County and have been with our agency for more than three years.”
Consider the answers to all of these questions and how they relate to your value proposition (your strong, first-impression statement that tells customers what you do and why they should pick you over your competitor). Are the customers you have the customers you want? Does your value proposition align with the values of the customers you want?
You can build this profile further, but this basic understanding of your customer base can help you build, maintain, and strengthen your relationship with your customers while also allowing you to focus your marketing strategies to attract more customers that match the profile you want.
Stay tuned for more helpful posts to expand your knowledge and grow your agency!
At Secured Advantage, we have great partners. SLNconnect is just one prime example of the first class organizations we work with to bring the best in class products to our members. This installment of our blog has been provided by their CEO, Keith Latore...
Can Customers Find You Online?
See for Yourself...
Sure. When someone searches your business name, you SHOULD appear at the top of page one. You may even be featured on the right, in the Knowledge Panel (that’s what Google calls it).
BUT what happens when a potential customer searches by keyword or product to find your business or another business like yours? For example, “CAR INSURANCE NEAR ME” or “I WANT TO BUY BUSINESS INSURANCE NEAR ME”. Since 93% of online experiences begin with a search engine, and 4 in 5 local mobile searches result in a purchase, it’s vitally important that you know where your business appears online, how often and how accurately. With SLNconnect, you can click here to run a free listing scan to see exactly how your business appears online today.
However, today is fleeting, especially in the digital world. Every day, your direct competitors and hundreds of different directories, websites and review engines are vying for the same page one space you covet. Furthermore, Google’s algorithm is constantly evolving. It currently uses over 250 attributes to determine who, where and what appears on page one for every search term. Since 80% of users don’t even go to page two before refining their original search, page one is the only place you want to be!
And no matter what any “SEO expert” tells you, you cannot buy your way to the top of organic search, nor can you control what a person is going to search, let alone click. The best strategy is to control every piece of your online information, so Google, Siri and everyone else knows exactly who you are, where you are, what you do and when you do it. All it takes is an incorrect phone number, address or hours of operation on a major directory to lose customers.
Changed your name, merged your business, moved locations or opened a new one? How is the internet supposed to know?
Sadly, what Google, Siri and others don’t know only hurts your business. What if you have a negative review (obviously a mistake 😊) on a popular review engine that you don’t regularly monitor? Unfortunately, no response allows the negativity to echo perpetually through the online ecosystem. We’ve seen examples like these and worse, which is why we recently introduced Total Visibility for Secured Advantage Member Agencies.
We believe that optimizing your online presence is an absolute necessity, but it doesn’t have to take a lot of time or break the bank. Within days, Total Visibility will Sync over 65 of the most highly trafficked website and directories with your correct name, address, phone, website, hours, description, social media feeds, unlimited keywords and other rich content search engines want.
Then, we will Lock down every listing so only you can update them. Updating is a breeze. Just make the change in SLNconnect, and we’ll push it everywhere online. We will also track your reviews and Notify you when a review posts to 22 different review sites, so you can respond immediately to your most vocal customers. All this will increase your online visibility, improve your search engine rankings and drive more online traffic to your actual door. We’ll even give you all kinds of stats to monitor your success.
Since price is the next logical question, here it is: $210 per year is all it takes to immediately enhance, expand and protect your business’ presence everywhere online. The service normally costs $360 per year, but Secured Advantage was able to secure a $150 discount for all our member agencies. Just enter the promo code $advantage at checkout to take advantage of this valuable service at an outstanding price.
Click here to scan your business now
Have questions? Email us at support@slnconnect.com to learn about everything SLNconnect can do for you as a Secured Advantage member. You can also schedule a FREE training on a variety of digital marketing topics here.
Secured Advantage, an independent agency friendly network organization, expanded its insurance company relationships with a first-class national partner in The Travelers Companies. As Secured Advantage looks to continue expanding their network of profitable well managed independent agencies, adding more carriers that understand the value the independent agent brings to their community is key.
“With almost a dozen members of Secured Advantage already appointed with Travelers, it was not difficult to see the potential synergy that would come from adding a strong national carrier to help support the rest of our network members,” said Tim Buren, president and founder of Secured Advantage. “We work hard every day trying to enhance the independence of our members and bring more strength to the independent agency channel.”
“We like working with good people, and we have found plenty of good people in the Secured Advantage organization,” commented Melisa Cuellar, Regional Sales Director, The Travelers Companies. “We are excited to support what Secured Advantage is doing to help strengthen and grow the independent agencies they work with.”
Their working relationship formally launched in the Secured Advantage network in April 2018. Both organizations expect that the relationship will serve the long-term interests of and bring value to all stakeholders from the carrier, network, agency, agent and customers alike.
About Secured AdvantageSecured Advantage was founded in 2014 with the expressed intentions of improving the independence of every member and in turn the independent agency channel. With more than 70 members representing over $250,000,000 in premium, the members of Secured Advantage are providing significant value to their customers in Ohio, Pennsylvania, Kentucky, Indiana and Michigan. In addition to bringing every agency increased profitability, they provide a number of additional programs and value-added services which will increase the independent agencies value. For more information, visit www.secured-advantage.com
About TravelersThe Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has approximately 30,000 employees and generated revenues of approximately $29 billion in 2017. For more information, visit www.travelers.com.
Secured Advantage, an independent agency friendly network organization, expanded its insurance company relationships with a first-class national personal lines partner in Safeco Insurance. As Secured Advantage looks to continue expanding their network of profitable well managed independent agencies, adding more carriers that understand the value the independent agent brings to their community is key.
“With close to 20 members of Secured Advantage already appointed with Safeco, it was not difficult to see the potential synergy that would come from adding a strong national carrier to help support the rest of our network members,” said Tim Buren, president and founder of Secured Advantage. “We work hard every day trying to enhance the independence of our members and bring more strength to the independent agency channel.”
“We are excited to partner with Secured Advantage and their members,” commented Matt Warye, Vice President, Safeco Insurance & Regional General Manager. “We are always looking for ways to grow our organization, and the Secured Advantage members represent a good opportunity for us to grow with good agents.”
Their working relationship formally launched in the Secured Advantage network in April 2018. Both organizations expect that the relationship will serve the long-term interests of and bring value to all stakeholders from the carrier, network, agency, agent and customers alike.
About Secured AdvantageSecured Advantage was founded in 2014 with the expressed intentions of improving the independence of every member and in turn the independent agency channel. With more than 70 members representing over $250,000,000 in premium, the members of Secured Advantage are providing significant value to their customers in Ohio, Pennsylvania, Kentucky, Indiana and Michigan. In addition to bringing every agency increased profitability, they provide a number of additional programs and value-added services which will increase the independent agencies value. For more information, visit www.secured-advantage.com
About Safeco InsuranceIn business since 1923 and based in Boston, Mass., Safeco Insurance sells personal automobile, homeowners and specialty products through a network of more than 10,000 independent insurance agencies throughout the United States. Safeco is a Liberty Mutual Insurance company. For more information about Safeco Insurance, go to www.Safeco.com.
Let me put it another way...Where can you find the divorced single parent?
In our last installment, we determined that divorced single parents often make the best employees in an agency. Now that we know what we are looking for…where do we find them?
We haven’t found a master list of all those who fit this criteria, although our internet research brought up some interesting sites for all sorts of things! We have found that a fully integrated cultivation of your centers of influence works the best. I am sure that you already have a relationship with the local accountant, real estate agent and bankers in your town, but it’s time to add a few more people that will help your employee recruiting efforts.
First, find the active Family Law and Divorce attorneys in your area.
Take the time to meet them, share the story of your agency and the type of person who fits best in the culture of your agency. Maintain this relationship enough to keep your agency on their mind every few months. Most divorces take several months or even years…no need to be stopping by every week in the hopes the right person popped up in the last few days.
Also, take the opportunity to explain some of the common insurance related issues that can be overlooked or challenging to navigate during a divorce. Your new found resource could provide more than a potential employee referral…they just might send over some new business as well.
Next, the person often aware of the marital status of the home is the teacher.
The more teachers you have in your book of business, the more opportunity you have to reach various households of all shapes, sizes and backgrounds. Teachers have a unique opportunity to interact with the parent, and would be able to provide a version of a character reference for the parent – good or bad. Knowing if a parent is active and positive or judgmental and disrespectful can help you avoid spending time trying to hire the next person you have to let go after three months of training and headaches.
Lastly, your local clergy – priests and pastors – often know the status of the home as well as its needs for employment.
Active and well respected members of their church can frequently be assets to your agency. These traits typically demonstrate an ability to work with others well and get things done. The new hire you find here will need to gain confidence in the agency’s ability to meet their customer’s needs first, but it is highly likely they will become a positive force for the agency in these circles outside of work where they are respected.
Building an agency culture that engages with the employees will help bring the best out of all its employees. Tweaking your structure to recognize the unique value and challenges of the divorced single parent could open new doors of opportunity for your agency in some unexpected places.
The season is open...time to get in the game!
Let us know if you would like to speak with any of our members. All of them have volunteered to share their story and the best practices they use to be manage their agencies.
Thanks,
Ted Rusinoff
To learn more about our story, visit www.secured-advantage.com.
You can also email me back at ted.rusinoff@secured-advantage.com, or send a note to my partner Tim Buren at tim.buren@secured-advantage.com.
We’re not actually talking baseball even though the season is officially opened!
Single people make better employees…
As an agency principal, I know the frustration of finding the right people, keeping them happy and maintaining the balance in the office. Working with more than 70 members of Secured Advantage, I get the unique opportunity to see things from many different perspectives. During a recent discussion with one of our members, we stumbled upon a common thread from our experience…our best employees were some form of single.
More specifically, the best employees were divorced, single parents.
As we started working up a list of pros and cons, it was pretty simple. Most often, the single parent understands how to balance time and priorities better than those without children or those with a spouse or partner. They tend to respect the opportunity to be employed and care more about the quantity and the quality of the work they perform – because they feel they need a job…this job.
These good elements come with the “bad” of sick kids, snow days and summer schedule adjustments. All of these issues become ways to help improve the value of the job for the employee when as an employer, you recognize the need to work with them on how to tackle these challenges.
Technology…Flexibility…Transparency…
With today’s technology, forwarding phones or remoting into the server, can be easy ways to help minimize the lost productivity on a school snow day. We know that less work is often done, but the most important items are handled.
We know flexible schedules help cover for school drop off and pick up or special programs and parent meetings.
We have seen how the commitment to the job grows when an understanding employer leads with transparency with the employees.
As you continue to build and grow your agency, keep these fundamentals in mind around hiring the people:
- Hire for attitude…many times the divorced single parent is looking for a place to be valued and is willing to give their best efforts to build that reality. High levels of commitment typically translate into higher levels of productivity.
- Hire for aptitude…learning new things and being capable on new tasks can often be the acquired skill of divorced single people from having to do everything on their own. They can be more capable with less resources required to help them add value to your team.
- Hire for appreciation…single wage earner homes need the income provided by the job often times more than those households with two incomes. Coming to the agency each day grateful for the opportunity to work can boost the level of service provided by your agency 10 fold.
It’s worth noting, that with any strategy, there will be exceptions to the rule. Here too our experience tells us that while there are some who don’t fit these generalized qualities of employees and may turn out to be less than what you were looking for, more often than not you will find better potential in this divorced single parent grouping than in most others.
Take a look around your agency or even reflect back on those who have been employed there in the past…many times the similar characteristics of those we were sad to lose go unnoticed.
Now that we have identified a characteristic or classification of the person you would like to hire, the next question is how to find them...that will be answered in the next installment of our email or click here to get that answer now.
Let us know if you would like to speak with any of our members. All of them have volunteered to share their story and the best practices they use to be manage their agencies.
Thanks,
Ted Rusinoff
To learn more about our story, visit www.secured-advantage.com.
You can also email me back at ted.rusinoff@secured-advantage.com, or send a note to my partner Tim Buren at tim.buren@secured-advantage.com.
Have you asked... What else?In a recent discussion with one of our member agencies, we were reviewing the strengths, weaknesses, opportunities and threats the agency was facing. As we continued our discussion we realized that many of these factors were common to the entire industry and not just this agency located in a medium sized town in Ohio.
We figured out the book in that agency was similar to the demographics that made up the town...
The average age was nearing 60.
The number of residences was flat or declining.
There were no new businesses entering the area.
(That could be a simple summary of the agency’s production reports as well!)
We also established that this agency had significant market share of its local community, and it was viewed as “the place to go” for insurance stuff.
We analyzed what the average customer’s total revenue would look like based on the products and services that have traditionally been offered to them as a customer of the agency. The home and auto insurance and possibly the umbrella or floater coverage that would likely be a part of their insurance program. The average premium came in right around $3,000 producing an average renewal commission of $450.
Then we asked the question…What else?
What else would this group of people possibly need as they were navigating their 60s into their 70s?
Retirement transitions... how could we help?
Medical insurance needs... what could we do here?
Medicare decisions... what do they need in this situation?
This last area...Medicare...every 64-year-old has a required election that must be made related to how they will engage with the Medicare system. The federal, state and county governments provide different rules and programs that are offered to individuals around their 65th birthday.
Most seniors don’t realize that they have options between things like plain Medicare, Advantage Plans or Supplement Plans.
Some of these options are mutually exclusive if selected.
Some of these options can be free.
Most 64-year-olds are unaware that they have a limited window to make the election and that each county provides different pricing and programming on what will be offered in that county.
Now here’s where it all comes together.
These 64-year-olds are already a customer of the agency.
They already recognize the principal as a trusted advisor.
A new decision about insurance is required…who should be helping them with this?
We think their current insurance agent…YOU!
It’s not all that easy to jump into the Medicare space, but finding a good partner that has already met all the requirements for registration is a great way to get started. Being in the business and learning what is needed to do it successfully for your customers will come in time and provide the right level of insight to determine what will work best for your agency long term.
For our member, they moved quickly through the process and are registered Medicare advisors providing the maximum level of support to their existing customers in their 60s. What they have found is pretty astonishing. The average revenue generated from the conversation around Medicare is roughly equal to the revenue that is generated from the primary lines of insurance that these individuals already have with the agency.
The agency is DOUBLING the average revenue from every one of these customers!
Another interesting fact is what comes next in many cases with these individuals...the life insurance review or the annuity roll over or 401k transfer or the inheritance that needs to be invested.
I’m not suggesting that you try to be all things to every one of your customers, but when these conversations come up it’s great to know that your customers value your opinion and directing them to a strategic partner – inside your agency or an outside partner - to help them on these matters keeps the customer engaged with your agency.
Recapping, our member:
- Doubled the revenue coming from their customers.
- Reduced the competitive pressure from other agents to move the business.
- Created more potential sales by helping address a decision required of every 64 year old.
- Increased their visibility as a resource and the value of their brand in their community.
Sounds pretty good to me!
Let us know if you would like to speak with any of our members. All of them have volunteered to share their story and the best practices they use to be manage their agencies.
Thanks,
Ted Rusinoff
To learn more about our story, visit www.secured-advantage.com.
You can also email me back at ted.rusinoff@secured-advantage.com, or send a note to my partner Tim Buren at tim.buren@secured-advantage.com.
Can you remember the last time you got good service?
Let’s get serious – we have a pretty low bar for customer service most of the time and most of the places we find it. BUT we tend to still notice when it is bad or when it is better than good.
Try to think about the last bad experience you had…you probably had a thought running through your head – “I would never hire this person” or “this person would never cut it in my office”.
Now I know this might be a little more challenging, but think about the last time you had a good customer service experience…what were you thinking then? If we are honest, we are so taken off guard, that we are likely just taking it in – a bit shocked but enjoying the moment.
We might have a moment like this and miss our chance to have the thought ready that we need to put into action:
“I need a person like this on my team!"
In a recent visit with one of our member agencies, I discovered that some of their employees came from service related jobs located in the blocks surrounding their agency.
One specific case was the neighborhood restaurant across the street. The principal would go there regularly for lunch and during one visit, he was treated to exceptional service, so he took note of the name of the waitress.
A few days later he went back – requesting the section of the waitress that had provided exceptional service during the previous visit.
During this visit, the principal was looking for ways to get a little perspective on the waitress. He was able to read her behavior as a self-starter, people person that could think on her feet. Instead of eating quickly and rushing out, he stuck around a little working on his phone, but keeping an ear to the conversation/engagement that was going on with the tables around him.
Over the next month, he continued to visit her section, observe her behavior and build a relationship. His tipping increased a little every time, and he found that the service continued to exceed expectations.
It became clear, that she would be a perfect fit for their agency, and he asked her to call the office to schedule an appointment to meet with him about an opportunity to join their team.
Given the conversations they had over the previous month or so, he knew she liked the day time hours, but would like to be home more in the evening and not work on weekends.
He knew she was dependable, neat and even had a little info about her family she shared in their conversations that would be unlikely to surface in an interview.
The right people with the right skills, can learn the insurance business.
The next time you are at Applebee’s or Friday’s with your family or meeting a customer for lunch…take a moment to notice the service, and when it fits with the culture of your agency, you might need to become a regular customer to find one worth hiring.
Let us know if you would like to speak with any of our members. All of them have volunteered to share their story and the best practices they use to be manage their agencies.
Thanks,
Ted Rusinoff
You can also email me back at ted.rusinoff@secured-advantage.com, or send a note to my partner Tim Buren at tim.buren@secured-advantage.com.
Why have over 70 strong profitable agencies linked up with Secured Advantage? To increase profitability, create options for the future and access the resources of programs designed to support the independent agent...agencies of all sizes (1 million to 50 million), some first generation all the way to 3rd and 4th generation independents, all historically profitable with one or more of our common carriers and every member is finding value in their membership.
If you are struggling to maintain the profitability of your book or need help perpetuating...take a moment and give Secured Advantage a call to see how we can help improve your present reality.
Secured Advantage, an independent agency friendly network organization, expanded its insurance company relationships with a first class regional partner in Western Reserve Group. As Secured Advantage looks to continue expanding their network of profitable well managed independent agencies, adding more carriers that understand the value the independent agent brings to their community is key.
“With more than a dozen members of Secured Advantage already appointed with Western Reserve Group, it was not difficult to see the potential synergy that would come from two like minded organizations working hard to preserve the independent agencies’ position in the industry,” said Tim Buren, president and founder of Secured Advantage. “We work hard every day trying to enhance the independence of our members and bring more strength to the independent agency channel.”
“We were impressed by the group that has been assembled in the Secured Advantage network and look forward to working with more of their member agencies,” commented Dennis Manzella, assistant vice president – marketing, Western Reserve Group. “Our company has remained strong by affiliating with good agents over the years, and expect that Secured Advantage will provide more introductions to quality agencies in the coming months and years.”
Their working relationship will be formally launched in the Secured Advantage network in February 2018. Both organizations expect that the relationship will serve the long-term interests of and bring value to all stakeholders from the carrier, network, agency, agent and customers alike.
About Secured AdvantageSecured Advantage was founded in 2014 with the expressed intentions of improving the independence of every member and in turn the independent agency channel. With more than 70 members representing over $250,000,000 in premium, the members of Secured Advantage are providing significant value to their customers in Ohio, Pennsylvania, Kentucky, Indiana and Michigan. In addition to bringing every agency increased profitability, they provide a number of additional programs and value added services which will increase the independent agencies value. For more information, visit www.secured-advantage.com
About Western Reserve GroupThe Western Reserve Group operates exclusively through more than 2,500 independent agents in over 600 locations throughout Ohio and Indiana, providing insurance protection to over 170,000 households, businesses and farms. The company is rated A (Excellent) by A.M. Best. The Western Reserve Group offers a wide range of value added property and casualty insurance products for automobiles, homes, commercial businesses and farms in Ohio and Indiana. For more information, visit www.wrg-ins.com.
Everything I learned about bonds came from one of our member agencies who specializes in bonds…all kinds of bonds. They’re true bond gurus.
I know a lot of agents hesitate to get into bond sales for fear of screwing it up, so here’s a bit of what I’ve learned.
It helps to think through the bond need/opportunity more like selling a house than the typical insurance application.
When you go to sell a house – you first need to know what you’re working with. How many square feet, bedrooms, and bathrooms. You listen to the current owners describe what they have to put on the market. Next, you need to present that home in the best way possible, so you stage it with just the right touches. When the right buyer comes along, they’ll be comfortable making an offer.
Believe it or not, bonds are similar to houses.The first step is know what you are working with in your customer. 60% of writing bonds is understanding what your client looks like to the outside world – especially the bond underwriter.
Listen to what they need, and understand what they’ll look like to the bond market. Then, 30% of the process is trying to make that look as good as you can. Presenting the operations and financials in a way that is staged accurately but attractively.
For the last 10%, it’s finding the right market, and the better you are at really grasping the first 90%, the more comfortable the underwriter will be to make the offer that meets the need of the customer.
Having said that, bond underwriters look at risk completely differently than a commercial underwriter.Every commercial account you have is expected to have a claim sometime…maybe a small fire, slip/fall, or some weather related damage to their building or equipment.
The underwriter knows this and prices for it based on the risk controls and quality of the operation. And again, no matter how clean the risk is, they know it's only a matter of time before even the best accounts have a claim.
The bond underwriter is a different breed.They’re pricing the risk with an expectation of never paying a dime on a claim at any time in the future of the account.
Well, let me rephrase: never paying a dime of the company’s money on a claim. The expectation of every bonded company is to perform no matter what and avoid a claim against the bond, because the bond will pay essentially with the customer’s funds – today’s money and tomorrow’s.
The better you are at understanding how to make your customer look good to the bond underwriter, the more likely they are to agree to a price and write a bond with reasonable terms and conditions.
After all, what good is a bond for $1,000,000 if you have to secure the bond with a $1,000,000 of collateral?
Now that could be an extreme case, but a recent call I received from a member agency had a problem similar to that very situation.
Here’s what happened.The customer’s insurance agent was finding it hard to get the underwriter to write a small bond - $80,000 for reasonable price and terms.
The insurance company wanted a deposit of $25,000 in collateral and planned to charge nearly $6,000 to issue the bond.
Now enter the bond specialist.
He talked to the client, reviewed their financial statements, and got real clear on what they needed the bond for.
Then, after a simple conversation with the customer’s accountant (who properly adjusted the financial statements), they selected a better, more appropriate market, and the bond was written without a collateral requirement for a premium of just over $600.
- Understand the clients and what they look like on paper.
- Make the changes where possible and present the picture in the best way possible.
- Pick the right market.
Do these things and your chances of creating happy customers goes up exponentially.
Like in this case…no collateral, one-tenth the price, and the customer has the bond they need.
(Plus, the insurance agent looks like a hero for bringing in the right specialist for the job.)
I could share several more examples, and maybe a future post can revisit this topic.
But for now, remember to listen to the client’s needs and don’t be afraid to get the right person on the team to bring an expert perspective on what needs to be done.
Let me ask you…have you had a situation where you were able to bring someone in to help and it made all the difference? Good or Bad?
"What am I 'locking in'...?"Do you ever ask that question and take the time to really give yourself the answer?
I know some of you are embarrassed to admit that it doesn’t even matter anymore…the book has fallen below the ever-increasing requirement for profit sharing qualification.
It’s unfortunate when profitable books slip below the level, but that’s the reality most agencies find themselves dealing with for one or more of their key carriers.
So...what are you locking in?
If your book is big enough – what are your expectations? About the same as last year?
OR have the carriers changed the rules again or maybe that one claim really messed up your loss ratio…I know our 60+ members like the way they get to answer the question:
What are they locking in?
MORE.
If their book is under $100,000 or maxing out the grid over $2,000,000 – the answer is the same:
MORE.
Our members know they will get paid more than what they would have been paid on their own. There is strength and opportunity in numbers…and in our numbers, across all of our members historically profitable books, there is MORE to share that any one of them would be able to earn on their own.
Hard numbers verify this.
We want to enhance the independence of all our members, and that starts by helping them be more profitable.
By getting MORE.
Our relationships with our core carrier partners are designed to bring greater profitability to our members without compromising their independence as an agency.
A member with a book under the qualification limit earned more than $3,000 on average every year, and the results get better the bigger the book gets.
It’s time to ask the question: what are you locking in?
Think about it, and then connect with us to get a better answer: one that begins and ends with MORE.
Our numbers tell the whole story. Tap or click here to learn more.
In the past 3 years, Secured Advantage has paid its members nearly $1,000,000 more in profit sharing than they would have been paid on their own.
That’s $1,000,000 more than the roughly $3,500,000 these agencies earned on their own.
Click here to see a detailed list of their results by carrier.
Call or email us (you can just his reply on this email) to join the network and earn on average an extra 28% in your profit sharing check!
I was recently able to catch up with Jeff Smith, the newly appointed CEO of the OIA. Most of you know that as the Ohio Insurance Agents Association.
Jeff is an attorney by education but a real student of our industry and of how associations can empower their members.
He took over his current role on January 1, 2017 and has not looked back. Here’s our conversation.
Ted Rusinoff: Let me start by saying congratulations on being promoted to CEO of the OIA, you have some big shoes to fill when you consider the work product of your predecessor who held the CEO role for over 30 years...
Jeff Smith: Thanks, Ted. It's an honor to be a part of the industry in such a pivotal way. We have seen significant change in our industry over the last 30 years, for sure…I really view our role at OIA as bringing resources to our members to adapt with changes in our marketplace, the employees of our agencies, the changing rules of engagement with our insurance companies, and to continue our role of advocacy with our lawmakers here in Ohio and in DC.
TR: You are about 60 days in now…what’s been your biggest task or challenge?
JS: Introducing myself and the organization to the members that do not know me. Sharing our vision for how we are solving member agents’ problems and really digging in to find what our members truly need to be competitive in the modern insurance marketplace.
I’ve been with OIA for 4 years before taking this new role, and during that time we could see how the generational differences have been creeping into our agency members’ offices, but trying to predict the right adjustments to deal with these changing perspectives has been a real focus for us.
Our Next Gen event in Cleveland on June 22-23 is one way we feel the next generation of independent agent can engage with the association and each other to bring better awareness to the challenges we face and the resources and tools that are available to them.
TR: That’s great to hear. I know many of Secured Advantage’s members feel the same way as they try to find the next generation of perpetuation for their agency. Finding the right apples to add to the bunch are tough. As you know, it only takes one bad apple!
JS: You’re right, and as our members are trying to manage their agencies, it seems like finding and keeping good staff is becoming more and more challenging.
We just announced a new partnership with an organization called WAHVE. I think this group will be a tremendous resource to all size agencies that need temporary or permanent, part time or full time help within their agency.
The organization finds the right fit for the job description from their pool of insurance industry experienced personnel. They came highly recommended, and we have already seen them helping agencies become more productive and effective.
TR: That sounds like a great program, and one that fits well with our mission of enhancing the independence of our members.
JS: Absolutely, and for the OIA, it’s really just the beginning of what we are trying to do to help our members find new and innovative ways to be successful.
The competitive landscape is shifting and the member agency’s book is more vulnerable to many new and different forces that were not a part of our industry 10 or even 5 years ago.
TR: I know the OIA has always been a big promoter of designation programs like the CIC and you provide an outlet for your members to purchase E&O coverage for themselves and their agencies. What else might we need reminded about where the OIA fits for our members?
JS: Independent agents are the reason why we do what we do. Our sole mission is to promote, protect and progress the professional advice that only independent agents provide. We spend every day telling the story about the value of independent agents to consumers, their clients, the media, carrier partners, lawmakers, judges, regulators and any audience that will listen.
In addition to being their advocates, we are the resource for agents on best practices for agency operations, technology, hiring, perpetuation, agency management, agency blog and social media marketing information.
We have built our organization to serve the needs of the members…if they need something, they should look to the OIA first to see if we have it. These next 5 – 10 years will have a large shift in our agency leadership and a changing demographic of our members, so we need to stay in touch and keep the dialog open between our members and the association to stay ahead of the changes that come, avoiding the threats, taking advantage of the opportunities and building a great industry for generations to come. OIA is uniquely positioned to grow the independent agency force and our market share in Ohio.
TR: Wow, I could not agree more, and it’s great to have an association like the OIA doing so much to help all of us in the industry. Thanks for your time today, Jeff. From all of us at Secured Advantage, you have our support and partnership as we make our way forward in this industry.
You can learn more about OIA at their website, ohiopia.com. If you have any follow-up questions for Jeff, email them to me at Ted.Rusinoff@Secured-Advantage.com.
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You are thinking back on how your agency started…those difficult days when you were doing everything you could to build a business that could last.
Maybe you came in as the second generation and had to work even harder to grow the agency to be successful at supporting two generations of principals.
The question today is the same…what’s next? Or maybe a tougher question…who’s next?
Too many times I sit across from agency principals that don’t have a good answer to the question, “What happens if you get hit by a bus on your way home tonight?”
Nobody likes the question, and worse, most people don’t have a good answer.
With 25 years of experience working with all kinds of businesses trying to find the right path to perpetuate their life’s work, I can speak confidently, that most of you reading this right now have doubts about “what” and “who” come next in your agency.
Some have a plan, and others are no closer to an answer, even as they are mere moments from needing it.
I joined the Secured Advantage team to help independent agencies, because our industry has been changing the answer to those questions more and more in the last few years:
- How will your family get the benefit of the value you built in the agency over the years?
- What w ill happen to your life’s work and the promises you made to all those people you call customers and friends and some, even family?
The questions become more real every day and the answers becomes more important with every new client or renewal.
Get in touch and let’s start talking about finding your answers.
We can help you find the best solution to “Who’s next?” and give you the chance to have the most opportunity to answer “What’s next?” the way you want to.
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The independent insurance industry today is tougher to manage and the opportunities seem thinner.
Finding profitability can be a real battle…BUT winning is still possible.
As carriers continually adjust their programs to reflect the mandates they have to find profitability for themselves, Secured Advantage is helping the agent adjust and overcome the challenges these changes present.
Large agencies and small agencies, and every size in between, are feeling a win with us. Let me give you a few examples. (And if you'd like to be introduced to them, just hit reply and ask.)
Agency #1A solid independent agency with a few different markets. One of those carriers was a Core Carrier of Secured Advantage.
As the profit sharing premium threshold continued to go up over the years, their book remained relatively level. Eventually it was no longer eligible, but maintained an exception historical loss ratio.
The agency’s profitability suffered when the profit sharing was lost, but as a member of our network, they are in a better position. Their $200,000 book produced an $8,000 profit sharing check!
Agency #2A good sized agency with multiple carriers and no real risk of falling out of eligibility from profit sharing with any of their agency’s core carriers.
One of those books, at one of the core carriers with Secured Advantage, was over $1,000,000 and their profit sharing check increased by almost 20% compared to what they would have been paid on their own.
Agency #3The next agency has 2 common core carriers with Secured Advantage. Both of these books are profit sharing eligible on their own, but the agency understands the value that comes from being affiliated with a network like Secured Advantage.
Their profit sharing increased between 30-40% on both books.
It would be easy to think of these examples as isolated incidences, but we have more than 60 members and most of them have a similar story with one or more of our core carriers.
What would you do if you could increase your profit sharing checks by 20% or 30%?
What kind of impact would that have on your profitability?
Let us know if you would like to speak with any of our members. All of them have volunteered to share their story and help explain why they remain a member of our network at Secured Advantage.
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My name is Ted Rusinoff. Like you, I’m an independent insurance agent, and if you're reading this, I assume you are, too. I also assume you’re fighting a similar fight to me.
A battle, even.
A battle for profitability. I hope you’ll read this short note and perhaps get back to me with your thoughts.
Insurance companies industry wide are under greater pressure to grow, and they push that initiative with increasing force down to the agency principals. To people like you and me.
As you know, maintaining your profitability as an agency is directly dependent on the terms and conditions each carrier places in their contract around what you get paid.
As you also know, that mark is constantly changing as they adjust the rates, terms, and qualification standards for the levels of commission and profit-sharing payouts.
As agents, we can fight for things to remain the same, but ultimately the carrier has the power to make the changes that they want or feel they need to operate as an insurance company.
The more power they have, the less we do as individuals. This could potentially kill our agencies. I know you’ve thought about this before. (I have. Many times.)
What’s Missing Simply put, we need tools to keep that relationship from being so one sided.
We need that seat at the table the independent agency principal had in the past. Not only that, we need the flexibility that comes with access without the entanglements that bring new commitments.
Is that even possible in 2017? Well, many independent agencies are doing one of two things:
- Selling out to large national firms.
- Giving up their independence by joining an aggregator of some kind.
Personally, I’m not completely satisfied with either option. To battle for profitability and lose independence in the process would be pointless.
(I know a number of agents who hope for a third option: things will simply reverse, and go back to the ways of old. I’ve thought that way myself at times, but the reality is this: there are no magic pills, secret spells, or time machines that can reverse the course of the insurance industry.)
There’s a Fourth ChoiceI’d love to know your thoughts on aggregators.
As I see it, there are several different models to choose from, and there’s not a “one size fits all” or even “one size fits most” scenario. Certainly not for an independent agency principal who has spent a lifetime building their business.
I choose to look at the core of the opportunity and ask these questions:
- Do the founding values of the organization match the culture of your firm?
- Who wins when something good happens within the new relationship?
- What’s lost if it doesn’t work out?
- What’s the real cost to my agency to achieve a new level of profitability?
These questions might seem obvious, but the process of answering them could very well be enlightening.
Secured Advantage AnswersWhen my partners and I explored those questions above for ourselves, we realized there wasn’t an aggregator that could provide us with answers that made us feel safe or secure.
At the same time, we knew the battle for profitability could be won by creating an agency network that could.
That’s why we created Secure Advantage, a network built on five core principles, uncommon to your typical aggregator. (Shoot me an email and I'll send them to you.)
Secured is an organization founded by an independent agency principal, like you, and our goal is simple:
To build a network of historically profitable agencies that maintain their complete independence, and who can bring the right strategy to protect and perpetuate the life’s work of an independent agent.
So far, we’ve helped over 60 agencies feel what winning the battle for profitability is like.
To learn more about our story, read through our site or get in touch. You might also sign up to our email list to get useful industry info and profit-building tips on a regular basis:
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