A collection of news releases, articles, and interviews from our staff
Just the Fax?: Despite the deluge of email and mobile devices, some carriers and agents cling to their fax machines. (Reprinted from Best's Review)
Fax technology is as old as the telegraph. More than 150 years ago it was possible (but not practical) to send images by wire. When standard fax transmission protocols were adopted in the 1980s, faxing exploded in popularity. The simple interface, speed and relatively low cost handily beat competing options of sending documents via mail or courier. Fax machines were revolutionary and quickly became a mandatory piece of office equipment. But now, 25 years later, why haven't they gone the way of the telegraph?
Today, it is becoming rare to see a stand-alone fax machine, but they have far from disappeared. Instead, faxing capability lives hidden in multifunction copier/printers that incorporate faxing. Combining functionality has achieved some efficiency, but there is still the need for a dedicated phone line and the additional consumables of paper and ink or toner.
Email is the obvious replacement for faxing because it's clearly faster and less expensive—and ubiquitous. The explosive growth of mobile devices and smart phones has put email in our pockets, making it available wherever and whenever we want. Sending and receiving email is personal and portable, unlike faxing from a shared device anchored in an office. Email has many other benefits over faxing: it can be sent to multiple recipients at the same time, it can be easily searched, it can be edited and it's better for the environment.
Today, neither insurers nor agents need fax machines. There are some common hurdles companies face when replacing faxes with email, however, they are easily overcome:
Paper documents and signatures: “I need to fax documents with ‘wet’ signatures or documents that do not exist electronically.” Scanning a document is as quick and easy as faxing. Saving and attaching documents isn’t difficult, but if it becomes an annoyance it can be dispensed with, as many network scanners today can send directly to an email address.
Accommodation: “My customers or trading partners send faxes as their chosen method of communication.” There are many fax-to-email services that will receive faxes and reroute them to your email box. Depending on page volume, the fees can be much less than the cost of phone lines and consumables. It’s more reliable (no worries about running out of toner or paper), and you’ll always have the electronic document instead of a piece of paper that can get lost.
Confirmation: “I need a confirmation that the document was received.” Email programs can request a receipt that the message was opened.
Security: “Faxes are secure, but I don’t know what happens to something I send over the internet.” Email can be encrypted and digitally signed. Email accounts are password-protected and potentially much more secure than information sent to a fax machine in a public area.
The first person with a fax machine was a visionary. However, you don’t need to be a clairvoyant to realize that you don’t want to be the last organization with a fax machine.
Digital Juggling is a Serious Business: Portable computing devices mean productivity for insurers on the go. (Reprinted from Best's Review)
Notebook computers are typically slower, less feature-rich and more expensive than desktop computers. So it may be surprising to hear that more than 10 years ago I ditched my desktop computer in favor of a notebook—despite the fact that I need ample processing power in my work as the head of an insurance-agency software company.
While speed is king, portability cannot be sacrificed. Today, all three computers that I use regularly are portable devices.
For instance, my main computer—a 15” widescreen Thinkpad notebook—is fast and loaded with features. While quite heavy, it is still portable. At work and in my home office, I have duplicate docking stations with the same large monitors, keyboards and mice. With just a click of the notebook into the docking station, users still can get the full-size desktop workstation experience needed to put in long, productive hours.
Occasionally I dock and use the machine as the notebook it was intended to be. It’s been used for demonstrations and presentations, and on extended trips when all office tools were required. Unfortunately, the short battery life means that I’m almost always tethered to an AC outlet.
To avoid having to lug around a 10-pound-plus laptop bag, some in the industry are finding that the new Toshiba netbook fits the bill perfectly. It runs the recently released Windows 7, and is a smaller, lighter, lower-powered and lower-cost version of a notebook computer. The netbook has limited expansion options and is not designed for heavy-duty use. Measuring under 8-by-10 inches and weighing less than three pounds, it is perfect for traveling if someone needs the processing power of a full-sized computer.
While it likely won’t be used full-time, a netbook is a perfect tool for insurers on the go. For instance, it comes in handy at multi-day conferences, especially in cramped, mostly power-outlet-free conference rooms. It can easily run on battery power for several hours while users check e-mail, reference Web sites and take notes.
Smart phones also are gaining traction in the insurance industry. Earlier this year, I acquired my first smart phone—a Droid X. That move was a decision I struggled with for some time because I felt the tiny screens and even tinier keys were awkward for entering text, browsing or doing anything other than making a phone call. But the iPhone and Droid have changed all that. With larger screens, touch interfaces and more capabilities, smart phones have become truly usable.
Users usually are left wondering how they ever survived without being constantly connected and having e-mail, the Web, an electronic calendar and GPS right in their pocket.
Portability equals productivity. If you and your organization need computing power to go, you likely need more than one device.
Managing Your Agency with Sprezzatura (From National Underwriter)
Get rid of the pain in the transaction and do the grunt work for clients, and they will focus on the benefits of doing business with you. Read more at National Underwriter Property-Casualty.com...Left-Braining Means Better Results For Agency Owners In Tougher Environment (From National Underwriter)
Management reports improve efficiency and productivity if analyzed thoughtfully. Read more at National Underwriter Property-Casualty.com...Marketing with Facebook and Twitter - How not to use social media (Reprinted from The Standard)
Facebook and Twitter are everywhere you look. If they are not already part of your agency marketing plan, they should be. But don’t make the mistake that most agencies make and treat them as just another way to advertise.
Facebook and Twitter, along with Linked-In, MySpace, Flickr, Ning and others, are collectively known as social media websites. Unlike traditional media that focuses on presenting content to the user, social media focuses on creating an environment where users can connect and provide content for each other.
Why should you care about social media?In the past five years, social media companies have risen from nothing and have created a completely new dimension to the way that people communicate.
There are over 500 million active users posting on Facebook and there are about 65 million tweets sent per day (750 tweets per second) on Twitter.
The growth of Facebook in particular is unprecedented. In 2008, at age 23, Facebook founder Mark Zuckerberg became the youngest person on the Forbes list of World Billionaires and was recently the subject of a major motion picture.
Clearly, there is something big going on here that you can’t afford to ignore.
How is social media different from traditional media?Think of Facebook as similar to the local soccer field on a Saturday morning. On the surface, parents are just bringing their children to practice and play, but there is also an enormous social component to the experience as well.
Looking around the field you’ll see old friends or acquaintances, some you will know intimately, some only by sight, and some only by name or reputation. There are also people that are completely unknown to you, but you have a common bond in the soccer field experience. It’s easy to strike up a casual conversation with these strangers and you’ll probably discover that you share additional connections through a common friend, team, school, neighborhood, etc.
People find this social experience interesting and useful. Through casual communication, there is sharing of information, news, and gossip. It’s common to exchange requests and recommendations for things like restaurants, home repair contractors, orthodontists, and even insurance agents. Because you have a common connection, there is a high degree of trust in the information. This exchange of trusted information is the basis for creating new relationships and strengthening existing ones.
What are the benefits of marketing with social media?First of all, it’s free. Sure, you can pay for advertisements on these sites and get placement in front of potential customers that match very specific demographic data that you have chosen. But, most of the real power of these sites is in the functionality that you get at no cost.
In addition, your message is more likely to get heard. Social media is built on the concept of friendships and connections. Like the soccer field example above, people that you reach via social media are connected to you in some way. Everyone you communicate with is a friend or a friend of a friend. Your message is not just broadcasted to anyone within earshot. Instead, your message is “friend-casted” only to people that you are connected with. People give more weight and attention to information they get from a friend.
Also, if your message is interesting and useful, it is much more likely to “go viral” via social media. The term “going viral” is used to describe electronic information that, like a virus, reproduces exponentially when all of your friends forwarding to all of their friends and so on. By “going viral” you can reach the numbers of people you reach broadcasting, but your message gets more attention and will have significantly more impact because it came from a friend.
Finally, social media is an easy way to keep track of distant connections and not lose touch with people you may not otherwise communicate with on a regular basis. Insurance is about trust and relationships. Building relationships is the foundation of your business. Social media can let you build and maintain more relationships more efficiently.
How not to use social mediaMuch has been written in the past year or so about using social media for marketing your business and hopefully by now you realize its potential impact. If you are not already marketing with social media, you probably should be. But, if you are already marketing with social media, chances are you are doing it wrong.
One mistake I’ve seen is caused by the casual nature of the medium. People forget the wide reach of their actions and post embarrassing photos or make off-color, insulting, or polarizing comments. You should certainly express yourself and your personality and treat your on-line presence as an extension of your physical presence. But remember that social media is public by nature and you should compose yourself accordingly.
By far the biggest mistake I’ve seen using social media is illustrated by how the following two agents approach Facebook in different ways. Agent number one has frequent posts like:
Agent number two has occasional posts like:
The first agent is trying to use social media to broadcast his message. He is treating social media just like traditional advertising. Imagine him up at the soccer field on Saturday morning talking like this to his friends. In the real world, just like the on-line world, he will quickly be “un-friended”.
The second agent gets it. He is sending potentially useful or entertaining information that increases the value of having him as a friend. Because of the relationships he is creating, people will be more likely to trust him and seek out his services.
Social media is not the place to do a “hard sell”. Unlike traditional marketing through print/radio/TV ads, direct mailing, sponsorships, etc., social media is about building relationships. Your post must add value, enlighten or simply entertain.
Unleash the Power of Your Computer - How to Gain More Hours a Day (Reprinted from Insurance Journal)
Computers should bring efficiency and save a lot of time. But they can actually waste time if you don’t use them properly. Most agencies have an agency management system and a rating system, but unleashing their full potential is another story.
Consider information that is coming into your agency in electronic format, such as emails or attachments. I know of an agency that would receive an email, print it and fax it over to the company and then put a copy in the file. That’s an extreme example, and you’d never do anything so obviously inefficient. But you and your staff may be doing some less obvious things that waste time. Most agents are not using every timesaving feature built into their agency management systems. Here are a few tips to save you time.
Use real time inquiry. Most agency management systems have this feature, where one click will take you directly to client billing, claims and policy information on the carrier’s website. It’s estimated that by using this one simple-to-use feature each CSR can save anywhere from 30 minutes to an hour per day.
So, if you have two full-time CRS, that will save anywhere from about 240 to 480 hours a year, plus the time you’ll save yourself.
Enter client information only once for both rating and policy management. Your agency management system and your rating system should be fully integrated. You should only type your client’s name, address and policy information once. If you enter it into rating, then you should import that information into your agency management system — and vice versa.
Use multiple monitors. Agents and CSRs now need simultaneous access to the agency management system, rating system, real time screens, email and more. Flat-screen monitors are now inexpensive. Having two or more monitors for each computer is a snap, and the times saved will soon pay for the investment.
Build a bank of additional interests and certificate holders. Many agencies produce these documents from scratch, one at a time. Instead, for each binder and certificate you create, add additional interest to the master list in your agency management system so that it’s never typed again.
Imaging/document management: use it wisely if you use it at all. Many agents buy such systems for the wrong reason — to convert documents into electronic “paper.” Many agents and CSRs aren’t yet comfortable with going paperless unless they can see an exact electronic copy of a paper document — for instance, a dec page. But since the dec pages are downloaded to your agency management system, you don’t need images of them. Creating them requires another time-wasting step. Even without a document management system, you can attach scanned or emailed documents to customer records in the agency system. Document management systems can save time, but only if you do careful planning to make sure you’re improving your workflow, not duplicating it.
Gaining efficiency for your agency may take less effort than you think. Add one timesaving feature per month so you don’t overwhelm your staff. Before you know it you’ll be finding an additional one to two hours a day! Freed from administrivia, you and your CSRs will have more time and energy to write new business and give great customer service.
Cyber-Security Gaining Ground Among Insurers, But Gaps Remain For Many (From National Underwriter)
Security is a learning process for agents, but many are not sure what they need to do. Read more at National Underwriter Property-Casualty.com...Simple Steps Can Help Agencies Take Giant Leaps With Technology (From National Underwriter)
Because no one knows what the next big thing will be, a wise insurance agent should be neither on the bleeding edge nor overwhelmed to the point of paralysis. Read more at National Underwriter Property-Casualty.com...Four Steps to Using Agency Technology for Target Marketing (Reprinted from Insurance Journal)
Conducting a target-marketing campaign used to be cumbersome and expensive. Today, with an up-to-date agency management system, getting started is a snap. It still takes persistence to succeed, but getting going isn’t hard if you have the right strategy and use technology.
Writing more business with the same amount of staff means that every dollar of increased revenue goes straight to the bottom line. The average agency’s employee expense is close to 60%, and the lower you can get the number, the more profitable your agency will be. The trick to accomplishing this goal is to become more efficient by utilizing the agency management system properly to target new clients. Equally important, you need to have an efficient, easy-to-use system so that once you’ve added the new clients, you can service them without adding staff.
Designing a marketing/growth plan for your agency can be accomplished in these four steps.
Step One: Research your customer database—find out where you areMany agents think they ‘know’ their book of business. Most are quite surprised when they actually break it down and take a look at it. Contemporary agency management software systems allow an agency to extract information about its customers and slice and dice that information many different ways. Running reports should be a very quick and easy process with your agency management software. If it’s a big, cumbersome process to do this with your system, it’s probably time to upgrade.
By doing a breakdown of the number of policies by type, age of clients, zip code, SIC code and so on you can gather the numbers to understand the story of your agency. How many of your personal and commercial lines customers are monoline? That’s a crucial statistic because it’s easier and less expensive to cross-sell your existing customers than to invest in finding new ones.
Step Two: Decide where you want to goNow you know what you have (and don’t have), the next step is, what do you want? This is your vision. Are you happy with your profit sharing? Does your client base allow for you to maximize your company relationships? If so, then you’ll want to design your marketing plan to get more of the same types of clients. If not, then design a plan that will target the types of personal and commercial lines clients you want to help round out your book.
Purchasing lists of target clients has never been easier or less expensive than it is today. Targeting affluent clients (for example) in your local area or certain SIC codes that match up with the appetite of your favorite company is a great way to build your book. Most modern agency management systems will let you import these lists.
Step Three: Weigh the options, make decisionsThere are many options to reach out to your desired prospects: radio, newspaper, target mailings, telemarketing, email, home shows, publicity, Web advertising, and public speaking before groups like the chamber of commerce.
Which options are the best? It all depends on your target market(s).
Whatever option(s) you choose, realize that a single-shot effort will not create the results you are looking for--it takes a consistent campaign. Doing mailings to the same group of prospects, supported by a radio and newspaper ads, over a six-month period, however, will produce the long-term results you are looking to achieve. Commit to it and implement it.
Use your agency management software to efficiently merge your target lists with letters specifically designed for each group. Printing labels or envelopes on a grand scale should be a snap.
Many systems include a marking campaign tracker, where you can set up a client file for prospects and keep track of letters, calls and other activity to prospects.
Step Four: Keep track and revisitKeep track of your spending and the new business brought in by your carefully designed plan. Your agency management system should let you track where business is coming from—direct mail, advertising, etc.
Use these features; run reports regularly. Look at your results monthly and make adjustments to your plan as needed.
This is an investment that will pay out over time so, don’t expect immediate returns. Target marketing is a part of long-term growth plan. A thoughtfully designed marketing plan based on research and smart spending will produce the most effective results for your agency.
With the advances in agency management systems plus the demographic information available on the Internet, it’s never been easier for insurance agencies to spend their marketing dollars smartly by target marketing for growth and profitability. Resolve to make 2010 the year that you get started.
June Sousouris, AAI, is director of sales for Special Agent, Inc. in Holbrook, MA. Sousouris has more than twenty years experience in the insurance industry and previously served as vice president of sales and marketing of a large insurance agency. Special Agent (www.SpecialAgent.com) is an affordable full-featured insurance agency management system used by more than300 agencies nationally. She can be reached at 800.842.0450 or jsousouris@specialagent.com.
Special Agent Can Now Convert Data from Other Agency Management Systems -Allow Seamless Transition When Switching
HOLBROOK, Mass.—Jan. 13--Special Agent, the insurance agency management system, has added the ability to convert data from other major agency management systems, the company announced today.
The new feature smoothes the path for independent agents who are upgrading to a new system, according to Christopher R. Baker, president.
“Conversion of existing data allows for a more seamless transition when an agent switches systems,” he said. “The process goes more smoothly because it eliminates the time-wasting and error-prone process of re-keying data. Agents are fully productive on their new system in much less time.”
Special Agent now can convert data from Applied Systems, AMS, Strategic Insurance Software and other major systems.
In an automation rut? Move the paint can (From AgentAndBroker.com)
When it comes to really learning our agency management systems, too often we're so busy doing the task in front of us that we don’t take time to see if there is a better or more efficient way to do our jobs. Read more at AgentAndBroker.com...Communicating with Clients in 2010 - Mixing the Old and the New (Reprinted from PIA Magazine)
What differentiates your independent insurance agency from the agency down the street? Ask any agent this age-old question and there’s always one resounding answer: Service, service and service.
Good service usually is defined as meeting your clients’ needs in a timely manner. Let’s say that most agencies do a decent job processing their insureds’ requests. Let’s also say that most agencies are open at reasonable hours and their people are accessible, friendly and knowledgeable. If most agencies are doing these things, it’s pretty hard to differentiate yourself.
Meeting client needs is an important concept. How do we meet our clients’ needs? Wait, back up. Have we identified our clients’ needs? Ahhh, this is the crux of the situation. We need to communicate effectively with our clients first to determine what they want in order to meet their needs and provide superior service.
People like to receive their communication in different ways and today there are more ways to communicate than ever before. One size does not fit all in the communication game. Thankfully, someone decided to classify people and make this puzzle easier for us to solve.
Looking at clients in terms of generations will help agencies in 2010 and beyond. Each generation has similar qualities and attitudes, learning these qualities will allow us to communicate effectively (and differently) with each generation.
1925-1945—Silent generation. They often are afraid of and skeptical about technology. Most of them prefer good old-fashioned print and the personal phone call.
1946-1964—Baby boomers. They are forced with the dilemma of adapting to new technology out of necessity, while at the same time being old dogs learning new tricks. While most have cell phones, they may be uncomfortable with the varied features that are regularly included in them. Many of these individuals love the Internet and can be found on Facebook checking on their kids or grandkids.
1965-1979—Generation X. They were the early adopters of most technologies. This group grew up on video games. They falsely were labeled the slacker generation because the way they learned, worked and played differed so much from previous generations, due to their use of technology.
1980-2000—Millennials (or Generation Y). They are a unique group of American youth, as they have had access to computers and even the Internet for most or all of their lives. This changes the way they learn and communicate. Millennials multi-task, think in terms of multi-media as opposed to simply text and exchange and process information extremely fast. Millennials seems to favor quantity over quality in terms of communication.
If you want to communicate with your clients or prospects, a multi-pronged communication plan should be the goal for 2010. This plan should be cross-generational.
Let’s take a closer look at various communication methods such as mail, newsletter, radio, phone, newspaper, RSS feeds, blogs and social media.
Snail mail. The standard U.S. postal service delivery still is effective for the silent generation and baby boomers. Make it stand out and quick-to-the-point if you’re targeting Generations X and Y.
Newsletter. The best newsletters are not overwhelming to read, there are pictures, lots of white space and interesting articles that are informative and succinct. Both electronic and paper newsletters should be used. The newsletter should be posted on your Web site, mailed to clients, e-mailed, posted on Facebook and you can notify members via a tweet using Twitter. This multi-pronged approach will hit all your clients.
Radio and television. These outlets still are strong. The important factor here would be to understand the demographic of the station to be sure you are reaching your target audience.
Phone calls and text. Plan to call your baby boomers and the silent generation at least once a year. But you’ll only irritate the Xers and millennials unless you’re texting them.
I know a 25-year-old customer service representative who has a nice little book of business of all her friends and family. She tells me that more than 50 percent of the communication with her clients is done through texting. Her notification to a friend, (plates in c u @ 3) lets the client know that the runner just came back with his plates for his newly registered vehicle and he can come to the office at 3 p.m. to pick them up. This is the service of the future.
No, not every CSR will need a company cell phone to text from because there are services on the Internet that allow you to text someone right from your computer.
Newspaper ads. Xers’ newspaper readership is dwindling and millennials don’t read them. Younger generations rely on the Internet to get their news and are building RSS feeds regularly.
RSS feeds. Most commonly translated as “Really Simple Syndication,” it enables users to get aggregated information from multiple sites they are interested in at one location.
We tend to be creatures of habit and look for our information in the same places on a daily or weekly basis. Most of us have mastered the “favorites” function in relation to the Internet, you save your favorite Web sites so that it’s a click away instead of having to type in the Web address.
RSS feeds are along the same idea as favorites, think of it as creating your own newspaper. On the Web sites that you check on a regular basis you would click the RSS feed button. Now you have created a place where RSS feeds from your specific Web site interests will feed into on a daily basis. Creating an agency blog that can be fed into people’s RSS feeds will keep your agency in front of the younger generation.
Blog. Short for Web log, a blog is a Web page that serves as a publicly accessible personal journal for an individual or business. Typically updated daily, blogs often reflect the personality of the author. Creating a blog for your agency Web site can be work, but well worth it in the long run. Letting your clients know about your blog via e-mail and regular mail will create a readership and allow folks to add your blog to their RSS feed.
Social media. Social media can be defined as software tools that allow groups to generate content and engage in peer-to-peer conversations and exchange of content. We’ve all heard of sites such as Facebook, Twitter, YouTube and so on.
Facebook is a community with more than 350 million active users, but many businesses use this medium improperly. Think of it as a method to keep in touch with clients, not to sell something.
It’s like going to a cocktail party. You don’t go to a cocktail party with flyers and sales pitches about your business—it’s tacky and boring. Instead you make interesting chitchat with people at the party, trying to connect with others on some human level. Your Facebook posts should be interesting chitchat.
Another analogy for Facebook or Twitter posts (tweets) is the local small business that makes good use of its signage out front. The most memorable are the ones that put snappy comments or witty statements that usually have nothing to do with their business.
I envision the agency of the future as a sharp cutting-edge business that asks each of their clients what is their preferred method of contact. This information would be entered into their agency management system in the customer file. Reports would be run based on this information and communications to clients segmented and acted upon as each client prefers. In 2010 the answer will range from phone, text, e-mail, letter, to the Facebook inbox. Who knows what the answers will be five years from now?
Agents are an agile and flexible group of business people and have always adapted to soft and hard markets, changes in regulations in the industry, competitive and mandatory coverages.
Not that long ago, agencies had file cabinets and handwritten endorsements that were mailed off to the insurance companies. Advances in technology have brought us great agency management systems, upload/download, company interface and so much more.
Changing the way we communicate with our clients and prospects is the next bastion of insurance Darwinism to which me must adapt. You can do it—think of it as the next big adventure. If you don’t want to adapt, you may find yourself on the road to extinction.
June Sousouris is director of sales for Special Agent Inc. in Holbrook, Mass. She has more than 20 years experience in the insurance industry and previously served as vice president of sales & marketing of a large insurance agency. Special Agent (www.SpecialAgent.com) is a full-featured insurance agency management system used by more than 300 agencies across the country. She can be reached at (800) 842.0450 or jsousouris@specialagent.com.
Getting on the Road to Success with the Right-Sized Agency Management System (Reprinted from The Standard)
Minivans, SUVs, hybrids, luxury cars, roadsters and motor homes - the auto industry offers us a wide variety of ways to transport us from point A to point B. The variety exists because everyone’s transportation needs are different and typically change over the course of their lifetime.
In the same way that transportation needs differ, an agency’s need for management software differs. A personal lines agency that represents a small number of carriers needs something resembling an economy car that gets the job done with a minimum of fuss. A large multi-line, multi-location agency may need software that resembles a big motor home with every option and feature under the sun.
The agency management software marketplace offers a variety of options to fit the needs of different agencies. Agencies should periodically consider whether their needs have changed and if their current system is the best option for their agency.
Agency needs and management system capabilities can be measured against each other in a number of ways. Some of the main things to consider when evaluating an agency management system are functionality, security, ease of use, and affordability.
Functionality. Do you need a two-seat convertible or a motor home with a retractable awning—or something in-between? Many agencies start with a basic system, outgrow it and then find they need the additional functionality of a larger system. Conversely, some agencies have purchased a basic system, and over the years the system has been upgraded and enhanced to the point were it has gotten unwieldy and too big for their needs.
Ideally both your agency and your management system should be at the same point in the growth curve.
If you still had the same subcompact you bought when you were single, you couldn’t comfortably squeeze your spouse, kids and their soccer gear into it today. Similarly, if your agency has grown and your system doesn’t provide all of the functions you need, chances are you are substituting an inefficient manual process that could be automated easily in a different system. On the other hand, if your system provides too many superfluous functions that you do not use, it can make everyday workflow more cumbersome than necessary.
Security. In the old days, cars did not have ignition keys. Turning a crank or pushing a button was enough to start the car and drive it away. Today, we have sophisticated alarms, automatic kill switches, and vehicle recovery systems.
When agency systems first came on the scene, security was pretty simple because the Internet didn’t exist. Today, identity theft is real threat. Future legislation will require even more careful safeguarding of customer information.
In a smaller agency, network security policies may be able to provide all of the required security options. Larger agencies may need more granulated security in their management software to provide finer control over which users can access and update specific pieces of information. For example, some agencies may need all employees to have access to all information for all clients; in other agencies employees may need to be restricted to access only their own set of clients.
Ease of use. A typical dashboard on a modern car can easily have one hundred switches, settings, knobs, dials and controls. A well-designed vehicle puts the features you use most often within easy reach and makes less frequently used functions less accessible. Similarly, your agency management software should make most-used features accessible with just one click. Unneeded functions should be out of the way and not interrupt your typical workflow. Not only does this speed day-to-day operations, it shortens the learning curve for new employees.
For example, if your agency allows accounts and policies to be divided among multiple producers with complex commission splits then you need a system that has options to track these details. But if your agency does not have this need, then a system that presents these options is only a distraction.
Affordability. Are you making payments on a luxury car when all you need is basic transportation? A luxury car offers more style and comfort than a middle-of-the-road vehicle, but at a much higher cost. Often, people purchase luxury cars to radiate an aura of success since many people want to do business with successful people.
But a management system isn’t a status symbol. A management system is a required tool for agencies that want to succeed. A Roll Royce system may not be the best tool for your agency even if you could afford it.
Your agency may have acquired a system with all the bells and whistles. You planned to use every feature, but over time you may have realized that you only use a small subset of the functions available. A more affordable system may provide just the right functionality you need at a fraction of the cost.
If you are still driving the same old agency management system you have had for years, it may time to re-evaluate your needs and see if a different model may offer a better combination of fit and function. Just like it may be time to trade in your old gas-guzzling clunker, now may be time to get a sleeker system that gets you on the road to success efficiently and cost-effectively.
Christopher R. Baker is president of Special Agent, Inc. in Holbrook, Mass. Special Agent (www.SpecialAgent.com) is a full-featured insurance agency management system used by more than 300 agencies across the country. Baker can be reached at 800-842-0450 or cbaker@specialagent.com.
Implementing Change for Survival (Reprinted from The Standard)
External changes in the industry are forcing internal changes in Agencies in order to survive and thrive. Implementing any type of change in an Agency is not easy task.
Agency owners regularly make decisions that affect employees. However, managing the change requires two highly developed capabilities: Decision Making and Implementation.
Because of the very nature of the personality type of an agency owner, usually the decision to make a change in the Agency is the easy part. Smooth and effective implementation of the change, however, can be more challenging.
A key element is to understand how the change will affect staff and communicate before, during and after the process. You must gain support and commitment from those who are affected by the change.
Let’s get concrete and talk about an actual decision an agency owner (Bob) will make. Bob has done his due diligence by reading industry material and studying Best Practices and knows that he needs to increase his revenue per employee.
He has various options open to him to accomplish this, Bob researches each possibility and decides that he can increase productivity, decrease expenses and reduce his E & O exposure by becoming more efficient by switching Agency Management Systems. The end result will be an increase in revenue per employee. This is the decision making phase.
Bob holds a staff meeting and informs the staff that they are going to purchase a new agency management system. The new system has the capability for Real Time, Upload, Download, integrates with Rating and lots of other features that will help everyone become more efficient.
You can almost here the shudder of fear in the room. How can Bob implement this decision and help the staff through this transition? These four steps are a great start:
Provide the big picture: Many agencies share their financial picture with employees monthly. It’s a very valuable tool. You don’t need to give all the gory details, but giving a snapshot of the financial health of the agency creates an environment for understanding and teambuilding. In our example above, Bob would explain to the staff that he pays $1000 per month for the current agency management system and the switch to the new system will save over $6000 per year. People understand saving money.
Sell the Solution: Take the time to highlight how this will benefit the staff. Present a positive vision for their everyday work flow. Getting the new system will allow the staff to be more organized, not having to jump up and down to get files, accessing company info in a click of a button, binders and certificates are much easier and faster to create. This helps create buy-in.
Involve people in the planning: Whether you have 5 or 50 people get them involved in the planning phase of the project. Schedule a brainstorming session. What needs to be done to prepare for the new system coming in? Who will do it? When? What’s the deadline? Having a broad agenda and allowing folks to give their ideas and comments creates a feeling of ownership of the project. You’ll be surprised how many of the grumblers will end up happily volunteering for a part of the prep work to help implement the change.
Celebrate Success: Don’t wait until the change has been completed. Bring in coffee and donuts, take people out to lunch, tell them how much you appreciate what they’ve done and celebrate all the little milestones along the way.
The roll out or implementation process has caused many unhappy employees in insurance agencies. Understanding the process and how important it is to get people on board by complete communication, selling the solution, involving staff in the planning and celebrating successes will ensure a smooth transition that will allow for the desired results.
June Sousouris, AAI, is Director of Sales for Special Agent, Inc. in Holbrook, MA. Ms. Sousouris has over twenty years experience in the insurance industry with her most recent prior position as Vice President of Sales & Marketing of a large insurance agency.
Find an Extra 1-2 Hours per Day (Reprinted from The Standard)
Time. There is never enough of it, but by becoming efficient we can find more time in our day. This is something we all want, efficiency, but what does it mean, exactly? Yes, most agencies have an agency management system at this point, but using its full potential is another story.
I knew an agency that would receive an email, print it and fax it over to the company (and then put a copy in the file). Hmmm, do you see an efficiency problem here? If you’re already receiving a document in an electronic format, there is no need to duplicate it. Simply forward the email to the company.
Let’s take a look at a few of tools that are probably already in your arsenal. Consider implementing these three time saving suggestions.
1) Real Time: Most agency management systems have this feature. While in a client screen, one click should take you directly to the client billing information on the carriers website. You should not be getting out of your system, opening the company website, entering your user id and password, entering the client info and so on. See the difference? It’s been reported that by using this one feature, CSR’s can save anywhere from ½ to 1 hour per day.
2) Rating: Integration with your rating system. Your agency management system most likely integrates with your rating system. You should only ever be typing your clients name, address, and policy information once. Period. If you enter it into rating then you should import that information into your agency management system (and vice versa).
3) Building a bank of Additional Interests and Certificate Holders: Again, a great time saving feature. For each and every Binder and Certificate created, the additional interest should be added to the master list in your agency management system so that it’s never typed again.
Change is never easy, but it’s certainly worth it. I took a class once where the instructor’s southern drawl alone was enough to hold my attention, but he said something that has really stayed with me. ‘Just cause your pappy, grand pappy and great grand pappy did it that way, don’t mean you have to keep on doin’ it that way.’
Having your agency become more efficient requires a small amount of effort and helps the CSR’s have more time to write new business and provide improved customer service. Make it interesting for the staff, not overwhelming, add one feature per month. Before you know it you’ll be finding an additional 1-2 hours per day!
June Sousouris, AAI, is the Director of Sales for Special Agent, Inc. in Holbrook, MA. Ms. Sousouris has over twenty years experience in the insurance industry with her most recent prior position as Vice President of Sales & Marketing of a large insurance agency.
Growing Your Business Using Automation (Reprinted from The Standard)
I recently received an email listing the most overused and outdated business buzz words. Target marketing and niche markets were right near the top of the list. I was quite surprised, these words have been in my lexicon for over 20 years. I consider it one of the most basic elements of smart spending.
In the 80’s target marketing was a hot new concept. Big business had been doing this for some time; researching the customer base, breaking down demographics by age, region, race, religion and so on. Asking the question… who is buying our product?
Years ago when agencies tried to target market to prospects it became quite cumbersome and expensive. This is no longer the case due to agency automation.
With the average agency’s employee expense somewhere close to 60%, writing more business with the same amount of staff, allows for increases to the bottom line. The trick to accomplishing this goal is to become more efficient by utilizing the agency management system properly to target new clients.
Designing a marketing/growth plan for your agency can be accomplished in these 4 steps.
Step One: Research your present customer data base.
Many agents think they ‘know’ their book of business make-up. Most are quite surprised when they actually break it down and take a look at it. Agency management software systems allow an agency to extract information about their customers. By doing a breakdown of the number of policies by type, age of clients, zip code, step and so on you can gather the numbers to understand the story of your agency.
Step Two: Where do you want to go?
Now you know what you have (and don’t have), the next step is what do you want? This is your vision. Are you happy with your profit sharing, does your client base allow for you to maximize your company relationships. If so, then you’ll want to design your marketing plan to get more of the same types of clients. If not, then design a plan that will target the types of clients you want to help round out your book.
Step Three: Weigh the options, make decisions.
There are many, many options to reach out to your desired prospects: radio, newspaper, target mailings, telemarketing, email, home shows, local advertising, high school talks, chambers of commerce. Make a list of the options with a budget for each. But beware; sending out one mailing will not bear the results you are looking for…. Doing 3 mailings to the same group of prospects, supported by a radio and newspaper ad over a 6 month period, however, will produce the long term results you are looking to achieve. Commit to it and implement it.
Step Four: Keep track and revisit.
Keep track of your spending and the new business brought in by your carefully designed plan. Again, your agency management system should allow you to track where business is coming from. Use these features, run the reports. This is an investment that will pay out over time, don’t expect immediate returns; this is a long term growth plan. Look at your results monthly and make adjustments to the plan as needed.
A marketing plan that is thoughtfully designed with plenty of research and smart spending choices to produce the most effective results for your business is just plain good business.
With the advances in agency management systems and the information available to us on the internet, it’s never been easier for insurance agencies to spend smartly by target marketing for growth and profitability.
June Sousouris, AAI, is director of sales for Special Agent, Inc. in Holbrook, MA. Ms. Sousouris has over twenty years experience in the insurance industry with her most recent prior position as Vice President of Sales & Marketing of a large insurance agency.