QUEST FOR PROFESSIONALISM

To the insurance professional with a true

servant’s heart, it’s what makes the job worthwhile

The biggest joy for insurance agency leaders who choose

this path is in witnessing those “aha!” moments, when associates

display their “inner insurance nerd,” explaining coverage perfectly … .

By Cheryl Koch, CPCU, ARM, AAI, ACSR, AFIS, and Mary Belka, CPCU, ARM, ARe, RPLU, CIC

We hear from agency owners that they struggle with building the professionalism of their associates. They see it as a differentiating factor but are often at a loss as to how to create a culture of professionalism. Unfortunately, it doesn’t “just happen.” 

What is professionalism, really? Julie Andrews began performing on stage as a child and explained her approach like this: “The amateur works until they get something right; the professional works until they can’t go wrong.”

For the insurance professional, the ability to be seen as a true resource and partner, and to experience the confidence and satisfaction of solving clients’ exposure puzzles through knowledge, experience, and expertise, is the goal. To the insurance professional with a true servant’s heart, it’s what makes the job worthwhile.

So how do you create a team of insurance professionals and elevate your agency to new heights?

Step 1—Foundation: Ten basic building blocks

If you know us at all, you will recognize what we consider to be the ten basic building blocks for any extraordinary organization, including insurance agencies. We’ve covered these in depth in previous columns; each is literally its own article.

We reiterate them here, for context. The absence or weakness of any foundational component diminishes the outcome. None is optional.

• Ownership commitment to becoming extraordinary. Nothing happens without it.
• Clearly defined strategy, updated annually, to light the way. Includes well-defined goals and accountabilities, along with a specific plan to achieve them.
• Core values reflecting that commitment—and codifying what binds you all together as a team.
• The right business model. Specific position descriptions and each team member becoming proficient and staying in their lane—yet remaining accountable to the team.
• The right people.
• Proper, invariable procedures.
• Seamlessly supportive and consistently used techstack.
• Continuous educational career path, outlining specific goals, activities, and outcomes, updated quarterly. This should be heavily front-end loaded.
• Performance-based compensation.
• Professional operational oversight and auditing for compliance and improvement.

Implementing all ten components from scratch can take one to two years if you stay focused; you will see incremental improvement along the way, and exponential results, if you stay the proverbial course.

Step 2—Opportunities to increase and apply knowledge

The second step entails bolstering and making use of team member skills. Attention to procedures, coverages, data, financial info and more come into play.

• Check policy contracts. Professional agencies require that account managers order and check all policy contracts, endorsements, and audits against appropriate applications, proposals, prior policies, and applicable documents. Checking policies means reading them—and deepening coverage knowledge. This builds confidence and professionalism. Providing forums to discuss coverages helps to build professionalism. Bonus: This also reduces the potential for E&O, as many policies contain errors.
• Create comparative analysis of forms and coverages. Reading forms leads to understanding that not all forms are alike. Comparative analysis of forms is a worthy exercise and should be required of all account managers. Preparing and presenting coverage comparisons to peers is great practice for explaining coverage to insureds. We are expected to provide options to insureds; the ability to comparatively analyze coverage, and identify any differences, is essential to becoming a professional. How does one gauge coverage understanding? The first level is not knowing anything at all; next is learning insurance techno-speak. When you can finally explain coverage and concepts—correctly, and using appropriate examples—to your peers, and finally to your insureds, you have crossed over into a more professional realm.
• Review loss runs, claims information, and experience modification worksheets. The essence of understanding coverage and how it might apply is in reviewing claims information in all forms. Loss runs are veritable treasure troves of data that can help you to help your clients—and to increase knowledge in general. When account managers order and receive loss runs and/or workers compensation experience modification worksheets, they should take the time to review them. Are there reserves that can be taken down to reduce the client’s premium? Are there mitigating factors that could help reduce the experience mod? Are there any particular trends that might be of concern to an underwriter reviewing the submission? Always insist that account managers review data before simply sending it on. Professional agents always seek to anticipate and negotiate on behalf of their clients.
• Review financial data. The same tenets apply to financials. Not all account managers have had the opportunity to study accounting. Financials provide a window into understanding clients’ exposures. They are required for some policies, for instance directors and officers liability, and for establishing bond lines of credit. An accounting course may provide some insights. Reviewing financials before forwarding them to underwriters is an opportunity to learn.
• Review contracts and leases. Insurance professionals are asked to review—for insurance purposes—contracts and leases. These documents provide an opportunity for account managers to develop a greater understanding of their insureds’ exposures, and increase their familiarity with contract wording. Proper disclaimers should always be used, limiting the agency’s exposure, and indicating that the insured should have contracts and leases reviewed by competent legal counsel before signing.
• Increase your account managers’ underwriting IQ. Reading applications enhances the understanding of underwriting guidelines. You can anticipate “deal breaker” questions and how underwriters evaluate risk. Supplemental applications can increase understanding of specific niches, enhancing the professionalism of your staff. Reading and understanding various carrier underwriting guidelines are essential to the insurance professional’s journey. Developing relationships with carrier underwriters and other industry professionals is essential to professional development.
• Study insurance statutes in states where you operate. Insurance professionals must be familiar with applicable insurance regulations and laws. As issues and questions arise, be sure to provide assignments for staff to research and present findings to increase their knowledge and insurance IQ.

Step 3—Exercises in risk management build professionalism

Beyond basic skill-building—and application—a timely focus on understanding account risks and managing and mitigating exposures is critically important.

• Weekly expiration list review. Reviewing all upcoming renewals 120 days out, on a weekly basis, creates a professional approach to managing renewals. This proactive approach is a critical differentiating factor for professional agencies. Once established, this process takes less than 30 minutes, and contributes immeasurably to professional handling of accounts, as well as reducing the potential for errors and omissions. It elevates carrier partner relationships, as it contributes to keeping timelines in check. It is also an opportunity to make certain that all renewals are updated properly in the system, reducing accounting discrepancies/errors. This process should apply to both commercial and personal lines. The agencies that “wait until download” miss the opportunity to connect with their clients. Retention and client engagement are high in agencies that operate this way—priceless!
• Pre-renewal risk management reviews. As expiration lists are reviewed, risk management reviews are scheduled. Insurance professionals proactively review accounts on a regular basis, preferably annually. These reviews have the added bonus of uncovering additional exposures, and often result in account rounding and lower potential for errors and omissions issues. Few accounts are remarketed, leading to increased retention and profitability.

Step 4—Encourage professional development beyond CE credits

Building account manager expertise and knowledge pays rich dividends. There are ways to accomplish this that some agencies fail to employ.

• Professional networking. Sadly, many account managers do not have the opportunity to attend industry conferences and events. Great agencies encourage and support these activities to provide opportunities for personal and professional development. Giving attendees assignments to take detailed notes and present what they learn to their co-workers is an invaluable exercise in building professionalism. It’s great practice and builds confidence.
• Professional designations. Education is a cornerstone of professionalism. A “fast track” approach at the beginning of a new account manager’s career can instill lifetime learning habits. The combination of formal insurance education, OTJ (on the job) learning, and practical application of lessons learned is critical to professional development.
• Publications, podcasts, and webinars. Encourage participation in “short” courses and presentations to expand and reinforce formal and OTJ learning. Emerging trends are critical in developing and maintaining professionalism—staying informed in an ever-changing industry is essential. There are myriad resources available to tap into.

Step 5—Celebrate!

The quest for professionalism pays benefits to the agency, of course. Consider how you can share those benefits by rewarding the team members who found success in their quest.

• Recognition matters. Sincere, swift, and public praise for accomplishments and “going the extra mile” is essential. It builds confidence and provides an incentive to all to pursue and continue their professional journeys. Team members join in by giving and receiving “shout outs” and encouragement, enhancing peer relationships.
• Financial incentives. Be sure to build in performance-based incentives whenever you can, related directly to achieving stated goals. You get the behavior you reward; what gets rewarded gets repeated.

Summary

All culture flows from the top. Leaders must remember that associates are watching and learning from them. If you value professionalism, do your best to model that behavior for your staff—actions and words matter!

The biggest joy for insurance agency leaders who choose this path is in witnessing those “aha!” moments, when associates display their “inner insurance nerd,” explaining coverage perfectly, excitedly sharing information about a new concept, or writing a perfectly professional follow-up email to an insured. It is a privilege to watch, as account managers evolve from a process mentality to a state of professionalism, because of the steps agency leaders have put into place to facilitate that transformation.

The authors

Cheryl Koch is the owner of Agency Management Resource Group, a California firm providing training, education and consulting to producers, account managers and owners of independent agencies. She has a BA in Economics from UCLA and an MBA from Sacramento State University. She has also earned several insurance professional designations: CPCU, CIC, ARM, AAI, AAI-M, API, AIS, AAM, AIM, ARP, AINS, ACSR, AFIS, and MLIS.

Mary M. Belka is owner and CEO of Eisenhart Consulting Group, Inc., providing management and operations consulting to the insurance industry. She also is an endorsed agency E&O auditor for Swiss Re/Westport. A graduate of the University of Nebraska, Mary holds the CPCU, ARM, ARe, RPLU, CIC, and CPIW designations.