A Roadmap to Commercial Insurance Sales Success

By Jeff Swanson

Commercial niche marketing for insurance agencies can be a very effective way to build a profitable, and stable commercial book of business. However, especially in smaller agencies, principals often hire commercial producers and do not create a formal written plan for the producer and therefore have no way of monitoring the sales activity. Quality salespeople want a track to run on so that they can achieve their income goals and be successful.

I have heard producers say that they want to make “X” amount in their first year, but they have no idea what activity is required to allow them to achieve their income goal. Too often we see a new commercial producer hired and the agency owner says, “go out there and bring in some business”. Unfortunately, what often happens is the producer comes back with too much Excess & Surplus Lines business or business that does not align with the agency’s preferred markets.

The E&S business will pay lower commissions which affects both the producer’s and agency’s income, increases the agency’s E&O, and does not allow the agency to maximize on their contingencies with their companies.

Develop a realistic sales plan for the producer. The plan should outline the expected number of initial calls to be made, first meetings with the business owner, the gathering of information, the presentation of proposals and the expected close ratio. Make it clear with the producer that the goal is to generate business that matches up with the appetite of the agency’s top preferred/standard carriers.

Most carriers will provide a list of the top 50 classes of business they want to write, but when you line these lists up, they begin to look the same. The producer should meet with company sales rep and ask, “what are the top 3-5 classes of business where your company has the highest close ratio. I have seen carriers come back with close ratios as high as 70% so go after these businesses. These are the classes of business that the producer should target, and this is a recipe for their success.

As the agency principal, let the producer know that you are investing a great deal of time and money and you want to see them succeed, but they must do their part and adhere to the sales plan. Bring their support person (CSR or Account Manager) into the meetings. For the first six months, set aside time each week to review the producer’s progress. If they are not meeting their goals, have a discussion as to why. Sometimes there may need to be adjustments to the plan. Discuss if there are any additional tools and resources that they may need. Maybe there is some additional continuing education or training that would help them be better risk advisors and help them in meeting their goals.

We sometimes overlook and do not take full advantage of what tools and resources the carriers can provide. Schedule quarterly meetings to have the producer meet with the carrier reps to review any new coverages or resources that are available.

Giving your producers a roadmap is not only a helpful planning tool for them, it’s also a better way for your to keep track of their progress. With guidance, goals, and support, your producers’ potential for success will increase substantially.

Jeff Swanson is a Business Consultant for Agency Focus. He can be reached at jeff@agency-focus.com.