Do you know the names of each person you insure? Do you measure your agency’s success by the number of policies-in-force, or by the number of customers with whom you have a personal relationship? Do you focus on selling just one or two lines of insurance instead of meeting all the needs of your customers? Sadly, many of the most successful agencies today resemble direct-writer shops with lots of staff handling the phones, high employee turnover, and have an impersonal feel. Although this approach may be an attractive short-term business model, it will ultimately fail. Why? Because there is no compelling value proposition anchoring the customer to the agency.
Banish Old Ways of Thinking
Have you heard or made this comment recently: “Competition is coming out of the woodwork and it’s killing me on price,” or, “If things don’t change soon the flood of policies leaving by the back door is going to put my agency under.” Rumors of the demise of the agency-distribution system are greatly exaggerated and generally come from agents who are unwilling to adapt to a changing marketplace. Many of these same agents are frozen by fear; fear that they’ll suffer the same fate as dinosaurs—extinction!
OPPORTUNITIES ABOUND FOR ALL AGENTS
It was less than 20 years ago when all of the major insurance companies advised their independent distribution centers (agents) to transform from salespersons to business owners. Did every agent make the change? Some did, but many did not. Remember the days when there were clearly defined boundaries between insurance agencies, banks, and brokerage houses? They’re gone! With the 1999 repeal of Glass-Steagall, Depression-Era national legislation that created those barriers, the lines of demarcation have blurred. Today, companies are focused on retention and organic growth, and many have formed strategic alliances. For the personal insurance professional this is nothing short of the next gold rush, not seen since the 1850s in California.
So why are the majority of insurance and financial services professionals waiting on the sidelines to strike the mother lode? Perhaps it’s because the change isn’t what they had planned. Great opportunities rarely meet you on the same path. Instead you must recognize the opportunity on a new course, in a new direction. You can do it, but you have to embrace change first. You have to become an evangelist of change. Look around your agency every day and find something you can change for better results. Write it down, then next to it write down the date that you’ll initiate the change. When that day comes, just do it! And don’t worry; I’ll be giving you loads of strategies to help you get there.
In the process of writing this book I had the great fortune to talk to thousands of personal insurance agents and witness firsthand the transformation of agencies all across the country. Many agents have made a conscious choice to take an offensive stance rather than playing defense. These agents are redefining their roles as personal insurance and financial services professionals, and adapting to new market conditions. They’re leveraging their greatest single asset—a personal relationship based on trust. That’s what this book is all about, because those personal relationships are the landmarks on a road map to the future.
In the pages that follow I’ll define the opportunity, show you how to exploit the obvious, and help you lay a foundation for the greatest business opportunity of your lifetime.
Your Success Depends on You
If you’re willing to give 100 percent to make your agency a success and if you follow the system that I detail in the following pages you will succeed. But first ask yourself some difficult questions. Am I ready? Am I enthusiastic about changing my agency? Am I ready to change my life and the way I view my business? Am I ready to put the fun back into what I do? Am I willing to get recharged and fully engaged in what I do for a living? If you answered a resounding “Yes!” then you’re ready to join me for this incredible journey.
Congratulations! You’ve decided to become part of the future instead of the past, so let’s get started. It’s time to take a closer look at that glass of water!
Chapter Highlights
— As a personal insurance agent you already have a competitive advantage over other distributors of insurance products—a personal relationship with your customers.
— Consumers need a personal advisor for their own protection. They won’t get that from 1-800-CHEAP INSURANCE. They will get it from you.
— Change is inevitable, so banish your old ways of thinking and profit from it!
— Clearly defined boundaries between insurance, banking, and financial services are gone. Adapt to today’s realities to guarantee yourself a seat at the distribution table.
Chapter Two: Take a New Look at Yourself—and Your Customers
Insurance agents can generally be divided into three groups. The first group is comprised of agents who are always on the lookout for new ways to run their businesses more efficiently and productively. They’re the high achievers, willing to change the status quo to become even more successful. They’re also the early adaptors, and you can count on them to seize the day when a new opportunity arises. When the prospect of selling banking services and investment products became a reality, for instance, the early adaptors were first in line to recognize the value in those possibilities—and to market financial services to customers.
The second group includes agents who are successful, but conservative about embracing change. I call this group “the thinkers.” They typically “think it over” until the early adaptors prove that a new opportunity is worthwhile. Then—and only then—are they willing to make the necessary investment and capitalize on the opportunity.
The third group is made up of “the cautious” agents. They’re the ones who tend to see the water glass as half empty. They’re reluctant to adjust to market changes, and say things like, “We’ve always done it this way,” or, “I don’t want to take the risk.” While they may not be totally satisfied with their lot in life or their level of success, they have no greater ambition than to conduct business as usual, even if they miss out on opportunities along the way.
Of these three categories, which group do you think will still be in business in five years? I firmly believe the answer is all of group one, most of group two, and a few of group three.
My primary reason for describing the three groups of agents is to highlight your need to believe you can alter the way you view your customers, how you think about your agency, and your overall attitude and enthusiasm for the insurance business. If you’re willing to change, I make you this promise: You can take charge of your future. Experience has shown me that opportunities are gifts and that it’s foolish to decline such treasures.
Become an Evangelist of Change
Today’s early adaptors are the insurance industry’s evangelists of change. They charge down a new path, learning as they go. These courageous agents are reaping the rewards of serving more of their customers’ needs while vastly improving their revenue stream. You, too, can become an evangelist of change, and there are lots of reasons for doing so: Your business will grow, your customers will be happier and more loyal, your income will be larger, and your agency will not only survive, but prosper.
The old way of doing things was to sell insurance products to as many people as possible. For multi-line agents this typically included auto insurance and homeowners insurance. Agents on the cutting edge would also sell life insurance or establish some commercial accounts.
The new way of thinking is to focus on the needs of your customers. What products do they want? What products do they need? It doesn’t take a mental giant to
