Posted On: April 20, 2004, 1:34 pm CDT

Posted By: Carolyn

Having started on the retail agency side as first a CSR and later as an account manager, I would tend to agree that for the most part CSR's are underpaid. However, excellent CSR's in our marketplace are not. There will always be a competition for outstanding account managers and they are paid what the market will bear, and are actively stolen away when they are not.
In addition there will always be the marginally and less than experienced CSR's who have to learn and think 4 yrs exp. is alot. It isn't. Now being a Underwriter for a General Agency, I am finally being compensated but it was a long haul and for a while I too was making less than the CSR.
One important thing to remember is when a CSR makes a error or a premium mistake, the Producer has to fix it or compensate the insured for the error, and guess where it comes from?? It comes from our commission, it doesn't come from the CSR's salary. The last time I had an assitant trained I ate about $5000 in errors.
The retail producer if they are successful works long hours, also listens to the problems of the insured, and prospects the client. Yes the CSR and account manager maintains that relationship, but it is the producer who initially makes the prospect and brings the insured to the agency. It's hard, its soul renching sometimes and if you have to cold call, you don't get paid until you make the sale. The CSR get's paid regardless. A producer bears the expense of prospecting, entertaining , mailing, phone and auto expense of driving up front.
I think the assumption is that the producer doesn't value the CSR, and sometimes that may be true, but a great producers rewards their support staff, with both professional praise, and monatary support--if they are smart. Often the CSR doesn't see or value what a producer does, the long hours, often not compensated, and the loss of a client. The soft market reaked havoc on many a good producers' book of business, the hard market and or loss of current markets is doing the same, but the CSR's salary is not effected as a Producers' are. The CSR also doe not take into account often when they look at their salary vs the producers, is the skyrocketing cost of E & O insurance, and other factors that the agency has to pay. Contingency works both ways, losses factor into that formula for contingency for both the agency and the market. And let us not forget the greatest area of expense, especially in California, the cost of benefits and workers comp. Running an agency is certainly profitable, but you have to know what you are doing and always work to keep the expenses down, that in itself is a full time job.
I think a CSR is the front line of our industry, and yes I agree for the most part they are undercompensated, but depending on the marketplace, it is a reflection of what the market will bear.

I try to take my support staff to lunch at least once an month, I argue for their pay increases and I set goals for them. When they meet our goal they are part of my bonus structure with managment.

I don't agree with the us vs them mentality and try to foster a mentoring atmosphere. My training of my account exec and csr helps me grow my book and helps them establish themselves a producers, which is good for everyone.

Part of thet growing of the book includes "gifting" them part of my book as theirs as they move into production.

Having come from where they are now the hardest thing to overcome was the idea that I was going nowhere. By fostering mentoring, they grow, my book grows, and become theirs and the agency grows. Along with that growth, comes the increase in their salary.

It works, it's hard and not everyone gets it, but it is awesome when it does.