Knowing vs. Doing in a Changing Marketplace

As the market changes do you possess the courage to do what you know you have to do? We agents are intelligent folks. We’re smart enough to know what is right and what is not. Yet, we too often don’t have the courage to do it.

First, we must get off cruise control and control our thoughts. Cruise control thinking focuses on tasks that are normal … those we do everyday in our agencies, mostly without thinking. We often don’t “think about thinking.”

So, let’s discuss the first step to take control. Take control of what? Take control of our thinking. As the market changes, what’s the first situation that you must apply intelligent thinking to and the courage to act to?

Retention
Run your ex-date list for the next 12 months. Then gather your team to review each “A” account to get each team member’s perspective on that client. Which clients are vulnerable just because? Which clients are price shoppers and need educating now on the steps you’re taking as the market changes?

(They’ll hear about the market change … when they hear about it from you first. They know you care about them.)

Which contractor clients can take advantage of reduced prices in their bidding process? (Help clients make money and they stay clients for life.) Which clients need hand holding to keep them loyal?

“B” clients
Now is the time to gain 100 percent of insurance wallet share in your “A” and “B” clients. When you bring the good tidings before any other agent that insurance will cost less on renewal, and you’ve opened the door to gather Broker of Record Letters, or at least position yourself to look at all that client’s insurance.

“C” accounts
Write it all or fire the account. You know you should. Intelligent thinking and the courage to act on that thinking dictate the necessary steps.

What other brilliant topical thoughts will take you to the next step during this transition in the market?

Account profitability
It’s time to be a bit unconventional. Now shouldn’t profit come first or second in this scenario? Doesn’t intelligent thinking say profit should come first?

But, how many agents know how profitable each account truly is? And how many say, “As premiums come down, I can’t afford to get rid of accounts.” Or, are agents so busy shopping every account, thinking is on cruise control and account profitability isn’t on the radar screen?

We all write new accounts not knowing how profitable or unprofitable they will be. The thrill of an order often overcomes the intuitive intelligence of knowing we’re writing a money-loser. But what would intelligent thinking and courage say?

“If you focus on all accounts that means you don’t have time to focus on the accounts you must keep for life.”

Conclusion: focus on clients you must keep for life.

As you focus on each account, determine profitability.

Once you determine profitability, build a service model that ensures lifetime client retention.

Understand each team member’s strength so each team member is in a position commensurate with their talent.

So, let’s put profit second because time is urgent. Account profit is second because most agencies haven’t focused on profit, but have focused on writing and retaining accounts no matter what.

As you review each account on your renewal list, just put “A+” if you think it is profitable and a minus if you think it’s not. Then, when you renew the account, have your profitability factors in place to really determine that account’s profitability during that year.

Intelligent thinking and courage says owners should play to their strength and delegate all else. Do you? Enough said.

So, the goal of this short treatise is to urge you to take thinking off cruise control and be utterly conscious of your thought process during the market change.

But most critical is to make thinking “intelligent thinking” and include the word “courage” along with it. For thinking of just one without the other is like having an ice cream cone without the ice cream.

And, don’t stop there. Embrace the challenges and conquer the changing market. Integrate intelligent thinking with the conviction to act upon your courage.

Preston Diamond, president and founder of Chapel Hill, N.C.-based 6th Sense Insurance Proposals, can be reached at: (828) 274-0959, e-mail: pdiamond@insuranceproposals.com, or visit: www.insuranceproposals.com, www.workcompadvisors.com.

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