Field research with insurance agents

What do agents do?

Motivations, behaviors and workflow Notes from field observations Proprietary – Competitively Sensitive Information

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executive summary abstract

We’re back from the field. 24 agencies in six cities over two weeks. Here’s what we learned: While the goal of the project was to discover the practices of our successful agents, the researchers quickly discovered that best practices are not always obvious – or simple. Many of our agents are succeeding in spite of outdated tools, weak marketing, and inefficient processes. The clues to their success are hidden in the details of how they build relationships with their customers, their communities and their employees.

The informal processes matter.

Researchers spent all day in each agency, observing workflow and agent interactions with customers and each other. The quality of customer service was usually the priority. Sometimes tools and processes helped – and sometimes they got in the way. To the disbelief of principals, agencies are full of work arounds, short cuts and informal practices that, while they may subvert the best intentions of office rules and policy, are almost always deployed in the interest of offering better service to customers.

Agents refine their techniques based on years of experience.

They see office processes and rules as guidelines and have a general expectation of autonomy in how they approach their job.

Conversely, some principles placed a high priority on process and office rules and may not have been aware, or effectively leverage the benefits, of the degree of autonomy that their agents display.

Constant randomization.

Agents suffer from almost constant distractions coming from multiple directions. Uninterrupted work time is extremely rare – and valued by agents. We observed poor discipline / process at managing distractions, and it’s impact on productivity.

Agents want to be knowledgeable.

Agents default to things that make sense to them and that seem fair, straightforward and honest. They resist things they don’t understand or have a hard time explaining to customers. Their level of trust with a carrier/product is directly related to their ability to understand and communicate its value.

Different is not always better.

Agents have limited capacity to understand our processes and offerings. We compete with all the other carriers – and – previous processes and offerings. We saw examples of agents discarding options because they were exceptions to standard product categories and comparisons.

CSRs are different – and the same.

They are very different from us and because of this we need to work hard to understand them better. Fortunately there was a high level of consistency in their approach to their overall work style and task management. They are remarkably similar in terms of their demographics as well.

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These informal processes and behaviors are best communicated through stories and photos capturing the things agents do – and the context that they do them in. This is how the researchers shared insights from their agency visits, and this is how the research was consolidated and aligned with the operating models. New patterns emerged that both supported and expanded operating model definitions.

Primary Carrier Agencies. “Don’t ask me to change the way I do things.�

Don’t give them a ‘black box’ to sell. Their customers expect them to have deep knowledge of carrier offerings and options.

Understand the goals and strategies of these agents and help them get aligned to Safeco products.

Classic Retail. “If it ain’t broke don’t fix it.�

They are not looking for new or cutting-edge technology. Help them build on (and make the most of) what they have.

Remember not to get in their way of providing excellent customer service.

Growth and Efficiency Agencies. “Our clients need financial and legal so we hired a CPA and licensed him.�

Shower them with ideas for growing their business and don’t worry about strategy or bending the rules a little. Fuel their desire for new and creative ways to grow their business and become a trusted partner.

Traditional Independent. “We don’t need Facebook – we have a real book.�

Listen and learn from these agents, they are a wealth of best practices. Adopt a broader definition of a ‘family’ policy.

These agents manage vast and deeply interconnected client relationships.

New Generation Agencies. “Safeco is a huge corporation – can’t we get a discount at Kinko’s?�

Send them even the warm leads and never overlook any small opportunity to help them grow their business. Support them by providing suggestions for infrastructure improvement.

Blended independent. “If anything goes wrong they (young staff) will blame us (older staff).�

Don’t only focus on the senior agents and principals. Somewhere in this agency is a ‘young’ highly motivated agent with lots of ideas and boundless energy. Support this catalyst for change in the agency.

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What’s driving their agencies?

Goal: To understand the motivations, behaviors and workflow of agencies.

Observations and learnings found in this report will inform steps toward a more robust relationship.

Understanding the behaviors, workflow and culture of our agencies is a critical complement to existing performance-based metrics used to establish agency success and operating model alignment.

With this understanding, we will be able to support/generate more successful partnerships with our agencies. The Agency Operating Models capture the “big picture� of agency operating styles and motivations. Using social science research methods, we focused on the details of agency workflow or practices, and were able “get at� many activities, routines and attitudes that people often don’t consider representative of the “real work� of their agency.

We took a close look at the human side of how independent agents do business. Our two-person teams (one experienced research lead, one Safeco Open Seas Innovation staff member) spent the better part of a day at each agency—watching, asking questions and documenting the practices agencies use to run their businesses. In a marathon four-day analysis session, we noticed that common work practices were being used by lots of successful agencies. We organize practices and behaviors by operating model in order to support the objectives of the Distribution Strategy group at Safeco.

This report is a deep dive into the observational research data. It illustrates how we transformed interesting—but sometimes seemingly random or disconnected—anecdotes and stories and distilled them into practices, by honing in on motivation, emotion and behaviors. We did not identify an agency’s operational model until we completed our analysis of practices. At this point, we recognize a complementary relationship between the operational models and the agency practices. This document also contains many insights and opportunities that will spark continued research and development efforts beyond the operating model work.

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“We’re a small big agency.�

The insights are organized into three areas our team feels guide the agencies’ overall trajectory. We separate ourselves from judging the agencies. Rather, we focus on learning from them, listening and making meaningful connections we can share.

focus areas ACTIVITIES The nuts and bolts of the day-to-day.

This area includes how customer service reps handle their activity sheets—how the principle governs. Tasks, tools, technology use, marketing efforts and policy management fall into this area.

PEOPLE Live/work balance is a key factor driving people to this profession. From the administrative staff to the agents, the producers and customer service reps. The ability to manage stress in a way that makes sense for the agency is at the core of live/work balance. These businesses are built for and around people for whom family is a strong value.

PROCESS Vision, tone, and flow of the practice.

This area incorporates findings around the flow and feeling of the agency. Are they a “well-oiled machine?� Are they a “family?�

Has the owner established a philosophy that’s driving the tone of the activities?

In some cases the process is healthy and inspired. In others, the essence of work is challenging. In every case we are able to learn about this project’s core: The behaviors and motivations of communication.

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“There is a human aspect to this business. That’s why the independent agent exists�

what we saw • How relationships are built, maintained and let go • The level of customer service “touchâ€? or “hand-holdingâ€? • Retention, renewals and rewards • How the staff and organization is structured • Practices in the day-to-day for CSRs and Producers • Techniques for hiring and selecting staff • Guiding principles or “visionâ€? • Book buying, rolling and management • Thoughts on Safeco and carrier tendencies

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project hypothesis from Safeco Distribution Strategy We’ve proven agencies perform and behave uniquely. Not only do we want to know what is motivating them, but we want to know how to help them...uniquely.

If we can understand what agencies that are successful with Safeco are doing, we can use those practices to build strategies, develop tools, and inform TMs. We want to help them to replicate those practices across agencies not yet successful with Safeco.

As Safeco Distribution Strategy, we entered into this field research with the intent of identifying each agency’s “operating model�—a broad spectrum of practices and approaches. We will use the information uncovered by our a qualitative study to inform our quantitative next steps—reaching out to many agents via survey to identify daily practices that are in fact “best� practices. This team, comprised of social science and behavior experts, did not know the operating models going in. They were not influenced by our organizing principle, yet uncovered some amazing surprises and consistencies. We found it helpful mid-project to use the models as an organizing principle.

The models are:

Growth and Efficiency

Classic Retail

Traditional Independent

New Generation

Blended

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what we did THE PLAN THE FIELD THE WORKSHOP

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PLAN The first step was to create a plan that would allow a team to efficiently visit a representative group of agents—across the country and across operating models. Teams were made up of one “insurance person� from the distribution team or Open Seas, and one “non-insurance� professional researcher. The non-insurance researcher would provide a valuable set of fresh eyes while the insurance person would guide and focus the interactions. Three teams worked concurrently for two weeks. Each visited eight agencies (four per week).

FIELD Since the goal was to immerse each team in the daily lives of agents we decided teams would spend one day at each agency, shadowing and interacting with a variety of different people including the agency principal, office manager, agents and quoters.

A typical day: - Interview of the principal learning background, goals, and priorities for the agency - Principal usually offered a tour of the agency with introductions to employees - Researchers split up to “shadow� one of the agents or quoters for about two hours (observing someone while they work, with occasional questions to clarify) - Lunch with an agent or staff out of the office for a more candid conversation - More shadowing with different agents - Review of notes and document insights, quotes and practices from the day - Conference call with other teams to discuss the day’s events. Stories were shared, methods were refined and logistics issues for upcoming agency visits were resolved.

WORKSHOP The week following the field research the teams gathered in Seattle to share what they learned and structure their insights around operating models. Each team composed their research from each agency on a large presentation board (4’x8’) including quotes, photos, diagrams, notes and various artifacts. At the end of the first day the conference room was filled with 24 boards each chock-full of agency stories and insights. Days two and three were spent sharing stories with the team. 30 minutes per agency visit was barely enough time to cover all that was learned.

The rest of the week was spent consolidating the research based on the operating models.

Agency insights and observations evolved into practices—and the practices started to define (and validate) the operating models. Research teams combined and recombined around different practices and models to ensure cross-pollination of experiences and insights. The end result is a very human picture of each operating model brought to life by the researchers from their experiences in the field. This human perspective will add critical illumination and refinement to existing operating model definitions.

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Primary Carrier One agency we visited had their voicemail system removed so that their customers would always get to talk to a real person if they called. Unfortunately, if a customer called after business hours the phone would just ring and ring. The lack of voicemail necessitated some complex workflow rules (process) to make sure someone would always be available to answer the phone during business hours.

This heavy-handed process was driven by a desire to provide excellent service— and added to increasingly complex office processes. .

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Primary Carrier

This operating model is defined by agencies with one (or possibly two) primary carriers. It may also be defined as an agency with a primary carrier for a particular market but with multiple carriers – each addressing a specific market with little overlap. Process-driven. Efficiency-minded. They would resist change to some degree if it meant redefining their process. Ritualization of process—or processes for process sake. These agencies are particularly resistant to change, because so much is tied up into a single carrier. Changes in carrier offerings can be very disruptive.

Opportunistic strategy where they will seize an opportunity when it comes along but will not put together a formal plan to achieve a vision or long -term goal.

These agencies may typically be high-touch, service-focused organizations. This can cause a conflict between somewhat rigid process and desire for customer touch...

Primary Carrier agencies will want to hire employees who can offer excellent customer service, but who are also comfortable with process and routine.

Potential TM approach

Signature practices

Build on what they have, less on newfangled strategies. Stick with what works.

- Embraces carrier changes that fit within their established way of doing things.

What they might need A recommendation about new business or community orgs that may be interested in a partnership.

- Deep knowledge of carrier products and terms. (expectation they sell to customer—especially resistant to black box as result) - Customer speaks to “live person� during office hours.

- Has comparative rater “just in case� even though they only have two carriers.

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Growth & Efficiency .

This model has an excellent balance between “high touch� and time management. For example, one practice we saw was an agency that had a new campaign to stop “cancel calls.� This way the book would clean itself, allowing the PH ‘s that are thought to be more high maintenance drop off naturally—ultimately saving the staff precious time. Working smart. While they may be streamlined in some ways, if their loyal customers still want them to take payments, they will. .

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Growth & efficiency

This operating model could best be thought of as a healthy family comprised of high achievers directly linked to the style, reinforcement, validation and multitasking “think ahead� qualities of their parents (the principles). A tight ship mixed with caring and thoughtfulness. This ethos is reflected back to the policyholder. Good boundaries and smart steps are inherent to this model. Hire those with “curiosity, empathy and willingness to work hard for the policyholder.� “Understand what’s of interest to the producer and help them exploit it to the benefit of everyone.�

Technologies are smoothly blended in support of agency services. We saw intranet staff education tools, meaningful use of alerts, reports, stickies, and blogs. Vision included a “fireside chat on Youtube and Facebook to better understand complaints.

Potential TM approach Support high-functioning staff with incentives and rewards. Compliment and recognize their achievements.

What they might need A quick way to analyze books available to them to ensure they are worth the investment.

The group mentality in the office is supported by unified process. for example, we found highly tailored tools for managing customer phone and email interactions, including note taking templates and scripted conversations.

Personal line producers and CSR’s work in teams that can relate to the niche client groups. They are incentiviized as a team and extend that interoffice relationship with loyal commercial agents who trust them to handle the personal lines of the companies.

Signature practices - Cross-sell commercial for personal lines strategically for example insuring the companies who install sprinkler systems in restaurants, bars, hair salons...then insure the small business, then the employees.

- Hire someone who speaks multiple languages and relates to various subcultures in the community, Spanish, Russian, Chinese, Japanese & Polish.

- Principle attends national meetings of agents who are non competitive to share strategy.

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New Generation Connecting with their local community was observed within this group. However, the type of community relationship being sought varies from other operating models like Traditional Independent and Classic Retail. New Generation agencies see their community primarily as a source of new business rather than a stepping stone to a long-term relationship.

Agencies in this category were on busy streets and welcomed “walk-ins.�

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New Generation

Regardless of how long they’ve been in business, these agencies focus on new business. We noticed a high degree of energy and creativity applied to this cause, but less to retention, customer service or staff nurturing. We saw several agencies operated by two leaders with complementary approaches to running the business. Many “tag teams� worked in close proximity and looked at each other when they finished sentences. They were also heavy handed with staff: “If you’re only working 60% of the time, that’s stealing.�

These agencies demonstrated clear hierarchical leadership structure. There were clear leaders – and everyone else.

We found these agencies were exploring creative approaches to learning about which customers they valued – and which they did not. For example, a grading system A, B, C... to indicate how much time should be spent on which customers. (A’s were good payers)

Investing in staff was not a priority. Rather, incorporating new ways to generate leads for the principles to work with seemed to be the norm.

However, much of our conversation was about the difficulties finding and retaining staff.

Potential TM approach

Signature practices

Support by providing suggestions for infrastructure. (staff incentives, producer schools, staff mentor programs)

- When PH’s call to cancel they are filed as “new leads� rather than canceled.

- Maximizes phone menu when calling the agency. “push 2 for a new quote�

- Will take anyone.

What they might need Agencies express difficulty recruiting the right people. Carrier support in this area would most likely be valued.

- Uses marketing effectively: postcards, website, newsletter, event swag (ready for next step)

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Classic Retail A CSR/Agent manually populated an invoice, printed it out, hand addressed an envelope and put in the mail basket. The customer has been with the agency for many years and has always paid the agency directly. The customer prefers to continue this practice, since “he has always done it this way.� So the agency pays the carriers and rebills the customer. This was not considered a waste of time, it was customer service.

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Classic Retail

This operating model is defined by agencies who are devoted to servicing their customers with tried and true methods. Their longevity and deep understanding of the carrier system gives them the confidence to continue conducting their business as usual. Personal service is more important than the individual carriers. They are not the early adopters—they sit back and wait for others to try out new processes and technology. One principal noted that they wait and see if other agencies fail with new methods.

Most CSR/Agents do not use comparative raters because of the broad brush results and feel they have to go to each carrier site for a “real� quote.

Competent CSRs were not comfortable with commonly used carrier sites—treating them as something that could backfire at any moment

The agency values their customers and is selective about customers. They do little or no marketing, preferring referrals for of new business. Having a mastery of software is not apriority as long as the customer’s request is fulfilled.

Potential TM approach

Signature practices

These agencies do not want anything new or cutting edge. Build on what they have.

Strategy is centered on providing high touch/high service for existing customers, and referrals will follow.

What they might need

Office processes are driven by checking and doubling checking, and replicating information.

High quality customer experience is the agencies first priority. If needed the staff will shepherd customers through the claims process, or become licensed in a new state.

-Transparent interfaces -Strong underwriter relations -Perpetuation strategies

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Traditional Independent

One agency was so embedded in the community that they had to strategically step away from some policyholders and bring in another trusted agent. “It’s a bad risk to insure the entire town. On the other hand, if someone is off their turf and is not polite about it we’ll make sure he knows what’s what.� “We work with the Buddhist community, we specifically hired a CSR who is married to the Buddhist leader . We have a 6% loss ratio in that community. We work hard for our clients—we live in this area. One guy said to me but you’re not Asian. I said, Yes I am! I go to the farmers market every Sunday and help set up and break down with the farmers. I know their kids.�

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Traditional Independent

This operating model is confident. A nice hybrid between smart process and long-term thinking mixed with niche policyholders and steady growth. They see insurance as an integrated part of life, not only participating by insuring their policyholders but investing in the community. For example, donating thousands to a “wellness center� for seniors (California). The family is involved, but hiring to support a new niche/community is on the table. Referrals and long-term multi-generational clients “go without saying�

Staff and agents have a unified mission established by a respected leader. This sets the stage for thoughtful selection of both policyholders and staff. Those that fit in.

This group would never use Craigslist. They prefer to hire from the community (someone with contacts who is deeply educated)

The challenge is to not overdo it with policyholders who want them to extend far beyond insurance services. “Contractors think you’re their secretary!�

Potential TM approach

Signature practices

Trusted partner. This model does not want to be treated as a subordinate.

They want respect.

- No voicemail during business hours (one after hours) - Strong adherence to time-learned process and practice - Limits on what they will write (no low limits) - Cheat sheets and memory combinations - Uses rater but not interested in new tech and social media - Everyone is liciensed - Don’t quote too early (understand timing) - Work within their community (embedded) - Share large accounts with other agents - Consider accounts not policy lines (clan view) - Multi linguistic

What they might need Assistance in balancing book, building on their expertise. Connecting with consultants & partnering with other agents for support.

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Blended Independent Transforming from the “status quo�—maintaining a relatively profitable book built over years, and simultaneously finding ways to “take it to the next level� through various initiatives: learning the legalese of insurance contracts, learning another language to serve new markets, consulting to commercial clients regarding change management, etc. Improving office operations by: repairing a worn-down office building, identifying new offices to grow into, redesigning the workspace to create more collaborative spaces, and evolving the process to include more collaboration, social networking tools and information visualization.

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Blended Independent

This operating model has a ton of potential. There are many efforts in place to learn about new ways to work, but not as many efforts around execution. There are several processes running in parallel. Each staff and principle has their own unique way of doing things. At best, the members of this model refine their craft. At worst, there are several “one off� ideas and methods in place. For example, one agency was very excited to have digital photos of everything. The photos were available “just in case.� On the other hand, there was also attention paid to the policyholder in a unique way by the agent—he would go out with the roofer with them after a claim.

This group has many focused processes going on simultaneously. Not much crossover in jobs.

A network of independent people doing their job under one roof.

They recognize the website is important, but it is not one person’s job so it’s on the back burner. Expressive individualistic process’s that work- such as graphic notes on expiration sheets.

Potential TM approach

Signature practices

Individual job-based incentives rather than collective agency incentives.

What they might need Links to outside consultants who could provide needed services that expand beyond any one persons job description.

-

However, one agent is interested in “change management� so he is planning to offer that as a service to policy holders.

Hire young talent Explore new options for everything Maintain long-term relations with policyholders Leave at 5 Buy books, but don’t want to sell books Hire outside the family Keep passwords handy, right next to the computer Use technology, Silver Plume, VM, AMS, Outlook

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overview Insights & observations Motivations Behaviors

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“Policy holders have never heard of Safeco, they remember things like the umbrella and the deer�

REAL RELATIONSHIPS ARE FORMED BY AGENT WITH UNDERWRITER AND TERRITORY MANAGER When the underwriters and TMs change after a strong relationship has been established, the consequences are huge because the agent, underwriter and TM have to understand each other to work together. They are responding to the complex needs of policyholders— and that takes context and human understanding. Agents shared that a big part of their job was as an advocate for the policyholder, being able to: a. Do the research up front before talking to the underwriter b. Build a case for a policyholder c. Persuade the underwriter to reconsider a decision and to understand the ramifications when warranted.

AGENTS FEEL THEY HAVE KNOWLEDGE TO COMPLEMENT DATA Agents feel they have deep knowledge about their policyholders and want to have a forum for appeals when the data is too rigid. Examples were used to describe how long-term Safeco policyholders would move all of their lines when there were premium increases for age, minor violations or late pays. Agents feel they must “go to bat� for policyholders to explain. Shifting requirements make it hard for agencies to be successful and cause them a lot of rework.

“You show me the bulls eye—then you move where I’m standing�

insights & observations ABOUT CARRIERS Each frontline person works with 5–10 companies. And many times each company has multiple systems or procedures. It’s very hard for them to know Safeco really well—especially when you get outside of longtime Safeco regions.

CSR’s really struggles to remember who has what special thing.

Or what contract covers what. They really want simplicity. It’s their personal connection, trust, and exact information that will close the sale—not “elephant stampede coverage� (coverage that’s allencompassing in an extreme way).

We saw that it can take up to 2–3 hours to quote current customers with other companies. A lot of the frontline staff didn’t appear to be super techy (retyping instead of cutting and pasting, basic, basic proficiency skills) and struggles to maintain different systems concurrently.

INFORMATION OVERLOAD Agency staff rarely read the carrier’s bulletins and materials.

They are bombarded with different emails, updates, etc. from various companies. They do utilize wall space and regularly sit in the lunchroom. Funny, charming idioms are rampant. Blending in with useful tools such as calenders or idioms or even workplace exercises would go a long way. Agents and CSRs are stressed. Anything that can help them relax would be welcome. They love to spin the In$tant wheel because it’s fun. They also love Safeco’s technology, website, and appreciate that Safeco is thoughtful about the emails they send. “I read Safeco email because it only gets sent when it’s worth reading.�

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“The brothers got smart & realized ethnic groups stick together�

POLICIES ARE GROUPED NOT THOUGHT OF AS SINGLE LINES We hear stories of how underwriters would drop a long-term multipolicyholder’s auto line, or add a steep premium because their child was now of driving age. This prompted the policyholder—who pays on time and has never had a claim—to completely drop all of his Safeco policies because he was more or less offended. Agents feel the need to advocate for such situations, not be held to the line on the stats. The agent considers the accounts holistically—like a circle, not a line.

PAPERLESS AGENCY DOES NOT MEAN PAPERLESS AGENCY Translation – we found a hybrid of digital and paper. CSRs or “account managers� as one best-practice agent put it, use paper as a way to signify actions needed for the whole office. For example, one agent highlighted the top of the file to show that someone has looked at it. Another agent pulled files out of the wall stacks to give everyone in the office a general idea of how many PH’s files they had to work with each day. Visual, environmental ques were ever-present in the office as a collective reference for management.

PERPETUATION: WAITING, ACQUIRING AND GETTING THE KIDS IN THE BUSINESS Some senior agents are just plain tired. Others are popping into the office in their Porsche. Others build a hand-picked staff that they invest in via producer schools and serious mentor programs, cultivating a longterm commitment that will pay off for them as they slow down. On the other end, we saw young sons and daughters being offered hundreds of books from “Dad’s friends� who were not as lucky as Dad to have their kids taking over. They want help navigating the potential. They recognize getting those books could be great, but it also could come with “junk.�

insights & observations GOLD SERVICE USE WAS VARIABLE Gold service attempts to address the information overload challenging agents. In some cases with high touch agents the service was not customer oriented enough. We witnessed one woman sitting on the line with her PH (while she did two other things) listening to the conversation and chiming in when needed. One agent noted as an example for not using Gold service: “When a policyholder calls GS to cancel, the attendant says simply, “Okay. Thank you very much for calling� and the PH is lost. Agents want to use GS, but they don’t want to loose the connection to the customer.

SOME AGENTS ARE VERY SELECTIVE A lot of agencies had a definite target customer and didn’t want low limit or “internet� business, even if it were given to them. The time servicing it wouldn’t be worth the effort, and the loss ratio would go up. Best-practice agencies had a very defined niche client base as an agency. Having a niche builds loyalty. It’s great for referrals and fosters nuance-based knowledge about the book overall.

Referrals are the main source of new customers. This can work really well if embraced as a proactive practice. For example, working within subgroups. One agent insures most of Japan Town near San Jose, California. They hired a CSR who was married to a Buddhist Monk and leader of a Temple. Soon, the entire Temple community was working with the agent. Developing cultural knowledge aids the customized needs of the policyholder, which builds loyalty and initiates referrals.

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“I work most of the time with customers who don’t deserve it�

HOW BUSINESS “EMPIRE� HAPPENS We saw agents spread out by “subbing�—allowing smaller agents with a particular niche in another town use the “master� agency as a route to more carriers, staff support, and CSRs with excellent underwriter relations. For example, a one-man operation in a small town with great contacts can bring in new business easily, but he may not have the customer support staff or the relations with carriers. The master then receives a commission for his infrastructure sharing, and the agent out there on his own doesn’t have to sweat the details—just bring in the new business.

SIGNIFICANT AMOUNT OF TIME CHASING PAYMENTS Over and over again we saw customer service representatives spend time trying to help a PH avoid a late payment. One agent said he was working with a doctor who was just really busy. He had sent multiple forms of notices via email, voice message and so on. He did not write in the message heading that it was a payment related matter, nor did he state that on the voicemail.

The PH’s privacy is protected by not providing a detailed subject line, but for a busy person like a surgeon we discussed how the doctor might not know the messages are payment-related. Either way, the amount of time chasing payments is huge.

“ The early bird gets the worm— but the second mouse gets the cheese �

insights & observations TAG TEAMS AT EVERY LEVEL Several agencies had dual heads. Principle partners had complementary skill sets; one more strategic and vision-focused the other more of a salesperson. Similarly, the producer/CSR teams functioned in pairs. CSRs often sit in close proximity to share information on-the-fly in between calls about carriers and accounts.

NON-INSURANCE SERVICES FOR PH’s ARE OFTEN PROVIDED We saw agents nearly all support PH’s with a variety of formbased and liability (although not directly insurance) related matters. These included finance, divorce, contracts, estate planning and business development questions policyholders would bring to them. One agent reported happily that he “helped a client remove a diving board� to mitigate risk. A few agents offered those services with in-house professional CPA’s and Lawyers. Agents also connected PH’s with vendors after claims.

In some cases, agents could use support finding services for their own companies. Those services might include web design, graphic design—we even had a request to provide interior design for one agent.

COMMERCIAL LINES LEAD TO PERSONAL LINES We saw a consistent pattern of cross-selling beginning with a small commercial business, then moving to writing the policies of the staff at the small business. Drycleaners, dance studios—in one case we found the agents had a tight relationship and a commercial policy with a sprinkler system company. One agent was approached by a State Farm agent who does not insure non-profits.

The State Farm agent “hooked up� the independent agent. The independent agent noted the activity sheet: “do not cross-sell� because that was the State Farm agent’s deal.

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next steps The result of insight consolidation is a richer view into our agents’ world.

Qualitative research builds on and complements a knowledge-base of performance, demographic and survey data.

Over time the value of field research extends beyond the insights it generates by providing a structured and repeatable approach for Safeco employees to engage with our agents. Conducting qualitative field studies enables Safeco employees to enhance their perspective, providing them with authentic stories and shared knowledge —adding value to any role.

Going forward.

In December 2010 a comprehensive agent survey will be sent out to more than 20,000 principals, producers, office managers, CSRs and agency staff. This survey quantitatively explores the rich findings we uncovered during our field research by aligning scenarios with operating models. The survey will reveal best practices – the practices successful Safeco agents employ to get the job done.

Agency Operating Models provide a useful lens to view the agency population through.

The survey findings will be used to enhance the focus of the lens, identifying those things successful Safeco agents do by Operating Model. Soon, we’ll circle back to the field research as we develop implementation plans to identify the best way to approach and work with agents, guided by Operating Model, with these practices.

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Examples of scenario-based survey questions: Hiring and finding new agents This agency focuses on hiring from within and mentoring (Growth and Efficiency) Hiring is rare but we do provide some training and development (Classic Retail) We’re looking for agents that will help us change and grow the business (Blended) We network through friends to find the right people (Traditional Independent) We look for people with lots of insurance experience (Primary Carrier) We struggle with finding good agents (New Generation) Customer service We’re a “high-touch� agency that services clients strategically (Growth and Efficiency) It’s critical to have “high touch� with customers during claims and renewals (Classic Retail) We explore new tools that we can use to help us interact with our clients (Blended) Our customers, their families, the community are all important (Traditional Independent) Our customers look to us to be advisors, but not teachers (Primary Carrier) We know which customers to give high touch to, and which ones not (New Generation)

Community Involvement The agency/ I am active in local/national insurance organizations (Growth and Efficiency) The agency/I am part of the community because that’s who I am (Classic Retail) If community involvement happens to generate new business, that’s fine (Blended) The agency, and myself, are a critical part of the community (Traditional Independent) Community is all about personal relationships, not memberships (Primary Carrier) I’m only active in the community so I can get new customers (New Generation)

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APPENDIX

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Proprietary – Competitively Sensitive Information

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Insights about the agency: â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘

Phyllis (the TM) met us at the agency.

80% CL , 15% Benefits, 5% PL Millennium offers VIP personal lines insurance Launching personal lines affinity program to housing managers etc..

Five offices in southern California â&#x20AC;&#x201C; home office in Irvine.

Strategy is to cross-sell commercial clients into personal lines Cross-selling CL to PL can be dangerous (Has lost CL accounts due to PL change) Personal lines business is located in separate part of the building Not looking for additional acquisitions as part of growth strategy Acquired personal lines book from a commercial lines merger (accidental PL) Personal lines was not planned. Focused on consultative sales if commercial account All the offices share an IT resource (the IT guy) Tools: FSC, AMS, Outlook Lots of inter-office email Personal lines teams â&#x20AC;&#x201C; one producer matched with one CSR Never reads carrier emails or newsletters CSRs may handle commercial calls from cross-sold accounts â&#x20AC;&#x201C; confusing for them.

CSR â&#x20AC;&#x201C; doesnâ&#x20AC;&#x2122;t need the underwriter very often CSR likes that Mercury provides more info in deck pages, non-payments CSR demonstrated lots of knowledge of insurance business/industry Both PL CSRs are very experienced from previous jobs.

Latin community could be better served by agents. CSR would like to focus on niche markets Getting all the rigt market appointments was stumbling block to setting up personal lines Likes Safeco Gold service as a resource for agents â&#x20AC;&#x201C; not necessarily customers.

Uses gold service to answer questions and delegate work (reissues) Likes Safeco.now auto-fill password so she doesnâ&#x20AC;&#x2122;t have to remember it.

Wants structured workflow and clearly defined tasks The only carrier info that matters is what makes my job easier Personal lines agents are second-class citizens An agent needs to love only one or two carriers Hand-holding customers takes too much time.

Agents prefer email Paperless office Producers sometimes work from home

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