SIX STEPS TO TRUE CARRIER PARTNERSHIPS

Rough Notes, Apr 2005 by Bateman, Walter, Primiano, Scott M

Agents need to better align themselves with carrier needs

"Unless you have prepared yourself to profit by your chance, the opportunity will only make you ridiculous. A great occasion is valuable to you just in proportion as you have educated yourself to make use of it."

-Orison Harden

So it is true of our relationships with our carrier partners and underwriting teams. They all begin with talk of partnership, mutual commitment, long-term growth, and shared success. Yet, as soon as the nail is driven to hang the plaque, things begin to change. Appetites shift, submission standards tighten, pricing becomes non-negotiable, and countless expectations and intentions are unfulfilled and misunderstood. Communication breaks down, phone calls go unreturned and discussions once shaped in "we" terms become "they" and "you" focused.

Current era agency-company relationships are like a teed-up golf ball on a windy day and frequently deteriorating into an adversarial who's-doing-what-to-whom finger-pointing exercise. Where's the love gone? And what about our clients? Has the industry lost sight of the reason that we are all here? Are we so consumed by internal combustion that we end up neglecting the very people whom we are committed to serving and protecting?

Yes. And here are a couple of reasons why.

First, we have essentially de-personalized the business of doing business. We have become so systems focused, so technically driven, so algebraic in our thinking, so "model-conforming," so consumed with moving files and paper, that we have forgotten that within each file we find The People-unique people with unique needs, expectations, purchasing power, and insurance savvy.

Second, our business models assume stability and permanency in a decidedly unpredictable world. Just read the financial press. It's a topsy turvy no-guarantees business world, chock full of uncertainty spawned by cutthroat competition, fickle financial markets, nervous investors, dissident shareholders, anxious boards, disloyal customers, interceding regulators, and aggressive attorneys general. It is difficult to focus our attention externally on the individual needs of our clients when so much time and attention is being sucked away by stress.

All that being said, we can achieve quality client-agency-carrier relationships. Here are six steps that you can use to convert carrier appointments into true partnerships:

Step 1: Recognize and accept the dynamics of a carrier-agent relationship

Rewind back to the "world has changed" theme. It's a fact. The underwriter-agent du jour mentality is transactional and not relationship based. We live in a time where agency-carrier relationships have become based on a "what have you done for me lately" expectation. Unfortunately, they've been established without deeply rooted respect and long-term commitment. It's as if relationships, like our products, have become commoditized. Also, essential to understanding the relationship is the issue of capital. Understand that it's the carrier whose capital is at risk and whose capital is frittered away if relationship expectations are not attained.

To understand this dynamic is to be able to work with it rather than against it. Channel your conversations away from the generalized and annualized and focus instead on the specific, month-to-month, mutually compatible activities and services that will drive the partnership and enable it to prosper. Talk of targeted business segments where they can be the "go-to" market rather than your overall book of business.

Step 2: Know what you want and need out of every partnership ... and know the difference between the two

Take out a piece of paper and jot down an answer to these questions: Why do you want or need this carrier? Will you be able to meet the goals and expectations of the carrier? Will you be able to co-exist based on their criteria as well as yours, not simply yours? And, will you be able to generate a flow of business that kindles a long-term agency partnership? Having done this, it is time to face the facts. Either you have the ingredients for a partnership or you don't. If you do, make your relationship as transparent as possible by disclosing the answers to these questions-both good and not so good. Full disclosure will lead to a better understanding of each other's strengths and weaknesses and, done proactively will enable you and your partner to manage the relationship accordingly.

Step 3: Book rolls are bad for business and for partnerships

Every carrier wants its fair share of the risk bearing landscape and some want more than their fair share, asking for agents to roll their books from other carriers. The theory is that if you are truly loyal, you will gleefully move business from subordinate carriers to your true partnerships. Your clients and Mr. Spitzer may beg to differ. The word "independent" that precedes the word "agent" means that you will have more than one option for all or most of your clients. If you find yourself being confronted with a request or an expectation for a book roll, revert back to our first step and re-focus the conversation on a collaborative plan to grow the business, not to just shift it around. Point out that all of your carrier partnerships are strategically aligned with specific segments of your book, those that they specialize in, and that no client is randomly and haphazardly submitted to any partner. Tell them that it is your practice not to pitch one against the other.