1st Year as a Producer Stories

[californiadude]

Hi Everyone,

I obtained both my P&C and Life/Health licenses at the end of September. Prior to my exams, I had no insurance experience. The past four months have been challenging, exciting, and scary at times. I am 27 so I have many years ahead of me to learn and develop.

If anyone is willing to share their 1st year as a producer story, that would be awesome. Any words of wisdom would be great too.

Cheers,
The Dude

[jtownagent]

Look deep within yourself and ask the honest question: Do you like the insurance business? If yes, read on. If not start looking for another career. You are young, why do something that you do not enjoy.

If you do like this business then there are so many great opportunities to succeed. It can be tough at first. most good things do not start out as easy. Make the decision to work hard every day. Establish a daily plan to succeed and live by it. Do not let other things disract you from this plan. Find a mentor if possible. Share your plan with this mentor or with your manager supervisor and ask that they manage and supervise you. Tell them you want to be held accountable and to not let you slide by. Learn something everyday. Works towards a designation. Read. Get involved in your local trade association.Always be ethical. Do what is right. Ask ask ask for business (do not be afraid to ask. You never get the business you do not ask for), and when you get the business ask ask ask for referrals.

Not the story you asked for, but stories will not help you suceed. Good habits will help you succeed.

[californiadude]

J Town Agent,

Thank you for the response, and yes I am enjoying insurance. I am working very hard and having fun at the same time.

I'm looking into either the CIC or AAI designations first, then CPCU later.

I haven't seen many P&C agents with a CPCU and that might help set me apart. But, talk is cheap!

[lonestar]

cali-dude, on designations:

Nothing against the agents that have them, and nothing against the idea of obtaining a designation. But in my 14 years experience of being an agency owner, focusing primarily on personal lines, I have yet to have one client ask me about what designations I have, or had a client refuse to buy a policy from my agency, due to me not having any designations. The designations are generally only recognized by the other agents in the industry that have also obtained the designation. To the general public's view, (and this is who you are trying to sell to) I do not believe designations add much, if any value. Other agents' mileage may vary on this.

When I meet with prospective clients, they are mostly interested in 3 things when obtaining a home / auto insurance proposal: 1. Rate 2. Coverage 3. Name of the company. Since we are in a sales business, I expect you will have the same response from prospective clients.

Again, not knocking designations. I just would not expect your sales to increase by any appreciable amount, just because of one. The industry has changed so much in the last 15 years. Progressive, Geico, Esurance, 21st Century, Elephant, and many other companies do not seem to be losing sales to P & C clients, and they operate fine without designations. Now, if your goal is to become a life only agent, or a financial advisor, or even an underwriter for an insurance company, then that is a different conversation. Good luck!

[jtownagent]

I can not argue with Lonestar's comments about any client's desire for any producer to have a designation. What I strongly believe is that to be a long term successful insurance professional, one needs to be a student of the business. This includes the technical aspects of insurance (Knowing coverages and exposures), understanding company appetites and underwriting guidlines, understanding sales and marketing, and understanding agency and sales mangement to name a few areas. You can learn as you go, and learn from reading and daily experience. However, I think the value of a designation program is that it provides an established plan and path to learn many aspects of the business in an organized, well thought out program.

For what it is worth, I like the AAI program over the CIC. In full disclosure, I obtained the AAI Designation after completeing the Aetna Home office sales course and the Aetna Prime Agent Training program, then went on to persue both CIC and CPCU. I did not finish either CIC or CPCU as it did not fullfill my needs as a Producer and agency owner in a small NE town dealing primarily with personal lines, small commerical, and basic life & health clients. I am sure each designation has proven beneficial to many others, and would not discount either as a disciplined way to become a student of the business.

[californiadude]

Thank you to both of you for responding.

Great advice on the designations. I am looking at them from the standpoint of extra education, not to use completely as marketing leverage.

I am coming from a Fortune 500 background where training was regimented and organized. I benefitted from that greatly. I want to persue some similar training with insurance. I chose not to go work for a carrier or captive and go the independent route from the start, where at our agency there is no "structured" program. Basically, I have mentorship and people to go to with questions, but no internal framework on how to develop people properly.

My fiancé has a FT job and pays the mortgage, bills so I could go down this path. Without her I would be toast!

Thanks again guys.
The Dude

[JohnnyLaw]

Dude you are way ahead of me already in that you are "marrying well". I worked for a large carrier for 20 or more years, opened my own agency 4 years ago. My career took me to Longbeach Ca for one year. Would be interested in what part of Ca you are in. My first year was scary and exciting as I opened the biz with 10k investment, bought E&O, computers, equipment, software and was scraping with about 5k working out of the bedroom. My wife and I always had the goal in opening this business to not tap into our savings or investments just the 10k. Luckily got a anchor account quickly which pulled me out of the funk. Referrals are very important. I made some champions that refer business and I go out of my way to show them how thankful I am, i.e. gift cards, etc. One of my biggest problems is time. By this I mean allocating enough time daily for new business as I get caught up in service work most every day. As for as designations I feel the same as the other guys have my ARM and did
it because I wanted to. I learn something new everyday in this if not about coverage, then about people. Keep having fun, your prospects will pick up on the energy as its contagious and before you know it they will be in the pocket. Also its a long story but to sum it up be careful about becoming a bank rather than a insurance company. Cowabunga Dude!!

[BrendaH]

Another thing I would reccomend is to contact your local Insurance Professionals Group. This was formerly known as Insurance Women, but has changed and is now non-gender specific. We are an international group, with local groups all over. You can access the website at http://www.internationalinsuranceprofessionals.org for more information. They would be a valuable resource in information and networking and helping you further your insurance career.

Good Luck!

[gdsmack]

California Dude -

I've read the posts as to obtaining designations, and my advice is to get them as quickly as your broker will pay you to get them done.

The insurance landscape is changing and there will be very, very little to define yourself from every other broker/agent out there. I certainly believe that with the advance of search engines, etc., consumers will become much more educated as to why designated agents are an asset, especially when its publicized in trade journals - like the recent article that compared a newly licensed agent with 40 hours of pre-licensing education vs. the hairstylist that had HUNDREDS of hours BEFORE they can get licensed . . . (not knocking hairstylists/barbers).

I firmly believe that as the "choice" clients get reduced by those who prefer agregators/online access, many of us will be fighting for those who truly want an agent/broker/adviser. And you can argue all day that one agent w/o designations vs the one with designations, but as a consumer, given that say both agent/broker have 15 years in the biz, but one decided to get those letters after their name, my money is on the broker w/desig who wraps the household.

I'm probably wrong, but I think many that read this know the environment I speak of . . . not bashing any out there, just an opinion. Best of success in your career!

gdsmack

[lonestar]

Designations will mainly benefit you, the agent, through self help, self learning about insurance in general. Other than that, the general public does not know(and possibly is indifferent) what 3 or 4 initials after an agent's name means. I think most of the insurance buying public, if they see a solicitation from an agent with "CIC" after their name, are thinking: "Ok, now what is the rate?" If you represent a competitive carrier, or better yet, multiple carriers as an independent agent, you will write more business than you can shake a stick at. Even if your business card says, "Joe Agent, Numbskull Certified". Again, customers are looking for these three things, and not always in this order:

1. What is the rate?(How much will I save)
2. What is the coverage?(They want the same or better than what they have now)
3. What is the name of the insurance company?

As a captive agent(representing a single carrier, with only one rate to offer) your closing ratio will be somewhere between 10-20%. As an IA(representing multiple companies, thus multiple rate options), the closing ratio will be 70-80%.

[californiadude]

Thank you all for the responses... Very good stuff!

For a first year independent agent, what do you think the premium goal should be? I know it depends on what type of business you are after. We are 80% P&C and 20% Life/Health. Most of what we go after is main street business and personal lines. Thank you guys.

[jtownagent]

If you are truly a producer only, I think you should think in terms of commission volume and not premium volume. Then think about how much do you want (need) to make in 3-5 years. I also believe you should validate your pay in 3-5 years, meaning the agency will likley carry you on a draw for the first 3-5 years, then the agency will recup the draw over the next 3-8 years. By then, you will have developed a book of business that should support all profitably.

[Happy Harry]

As far as the general public is concerned the designations mean little. However, it is your knowledge that is increased and with that knowledge comes the ability to be an insurance adviser not just a policy peddler. Most agents have never read the policies that they sell and if they did read them would understand them about as well as Joe public.
If you are going to pursue commercial insurance it is to your benefit to achieve designations. Here in California you have to have so many hours of continuing education you should make it count. I currently hold the LUTCF and AAI designations and am working on the RPLU. My partner is a CPCU, AAI, CIC . We both value the designations not for the sake of having a designation but we are able to discuss the intricate and subtle differences and meanings with in policies. This better allows us to sell Coverage verses Premium.
If you are working in the Auto, Home, and Life market price is the controlling factor. However, you can still sell coverage's if you understand the policy. You cannot explain what you yourself do not understand. Read the policy's you are selling then read the policies that your competition is selling what words change what meanings. Understand that you are selling a legal contract and that if its not in the contract its not covered. Understand the exclusions and what they mean. Not just the benefits.

[californiadude]

Great feedback all around... Now- here is the question:

I am 4 months in.
Should I start with CISR, or start with CIC.

I am not a CSR but I've read that the CISR coursework is a good intro to the CIC. I am Commercial lines 80% personal 20% with independent agency.

Any feedback is appreciated. I am doing this for education first and foremost.

Cheers!
The Duder

[BrendaH]

I would suggest starting with ACSR, as it is a more nationally recognized designation that CISR. YOu can get infor on it from your Independent Agents Association.