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Hi folks. I just started my career as an insurance producer and I have a million ideas on how to be successful. I understand that at the beginning, I am to build a book of business, but when the book gets big, I'll need servicers to help me with servicing these accounts. Now lets just say that I plan to purchase a book of business with 3000 clients for P&C (Auto and home). How many servicers will I need to service these clients?

Gabriel, welcome to the business, and I truly hope that you make at least one dollar for each of your million ideas to market your services.

My suggestion is to get your business practices in place and begin the business building process long before you start seeing yourself in a wood paneled office with a high back swivel chair, a Mercedes lease and golf games lined up multiple days per week while the 'crew' takes care of business.

If indeed you were to purchase a book of business the size you're wishing for, then just look to the staffing of the seller as a starting point and if/when the time comes, see if you can run things more efficiently.

Your post truly brings me great joy! Thank you so much for that.

Imagine if you are the gentleman in that high black swivel chair and you were going for a book of business of 3000 active clients. Based on your expertise, about how many servicers would you dedicate to that book?

I think the best answer to your question is: how many do you think you need? What work have you done to figure out your problem?

Hi Gabriel I would have to reply that it depends on the service model and these customers. Some are extremely low maintenance while others can be very high maintenance. Personally can say that commercial accts. 20X the premium can be less maintenance than one very thrifty personal P&C customer. So without knowing how far you will go to keep these 3000 customers it is hard to guesstimate. However guessing your cash stream and overhead would guess you would have 8 service persons with two being CSR's.

Go to the most recent best practices study: http://bp.reaganconsulting.com/bp2014/intro.html

Click on the tab at the top for the expected revenue for the agency. (under 1.25m or 1.25m to 2.5m (3000 accounts x $3,000 average premium for a home and auto X .125 for 12.5% average commission or adjust your numbers as applicable).

This will give you the average number of servicers for these size agencies.

Thanks YoYo that is very helpful.

Thank you so much for the replies! Definitely helpful

There are so many variables involved. If you are going to use company service centers well, you may just need a few servicers. If you are going to service the accounts yourself you will need more servicers. Are these mono-line accounts, or are the "full rounded out"? This makes a big difference too.

I like the "best Practices" suggestion so that you can benchmark for agencies of similar size and geographical area. Another suggestion would be to measure in commision per account, rather than by client count or policy count, and benchmark using Best Practices information.

Since you asked, our agency has a Personal CSR for each ~1000 to 1100clients. The CSR's are working very hard every day with this work load. We also have one assistant for supporting every 3 CSR's. Not saying we are doing this right or wrong, but I thought I would provide you with our numbers. We have chosen not to use company service centers.

jtownagent,

Just curious, how do your agency procedures factor into your CSR requirements? For example: Do CSRs also quote new business, and if so, do they have deep procedures on, for example, limits; someone may walk in asking for $100,000 liability limits but there is a procedure to recommend more and either reject the client or obtain some sort of signoff...not to mention the time it will take for that CSR to explain why the higher limits are needed.

Or do new customers meet with "agents" (aka producers/salesmen etc) and they handle the new business load and the appurtenant limit and other minimum coverage discussions?

The above was just an example, other procedural decisions may factor in, such as cross-selling, requiring signed statements for policy changes, etc, all things that take time to perform, but some agencies may decide that they aren't necessary.

Our CSR's "do it all". Commercial & Life business needs gets referred to others in those departments. We have incentives in place for them to refer this business "outside" of the personal lines department. If written, the CSR receive a percentage of the new business commission. If there is a producer on the account the producer gives up the referral commission the the CSR gets, but still wins because a new policy has been written in "their name". This incentive to the CSR is on the new business only. There is no renewal commission paid to the referring CSR.

We have written procedures for New Business, Renewal, Endorsements, Audits, and cancelations. We do not have firm procedures on who does what, and we struggle with this at times. This is one of the reasons we came up with the position account mananger assistants. The hope was to lessen the burdon of CSR's in handling billings questions, and some routine client needs, such as address changes, binder requests, mortgage changes. We have expanded the assitant position to include automobile change requests and other "routine" non complicated transactions. The assistants are licensed, and we are finding this is a good way for them to grow and advance into becoming a CSR.

We are establishing a new business team in personal lines, to best respond to new business opportunities and support our producers, (yes our producers do get paid new and renewal commission for personal lines business).