How to Analyze Your Insurance Markets

How do you know the insurance carriers you represent are the right ones for your agency?  Conducting an annual review of your markets will help determine if your partnership is mutually beneficial.

The review process should involve all the individuals who have a relationship with your markets –owners and managers, producers, CSRs, account managers, marketing, and claim staff.  Use a spreadsheet format to organize the variables you are reviewing.  Down the left-hand column, list your companies.  Across the top, list the variables listed below.  Complete the chart and you will have significant information about your companies with which to make important management decisions.

Company analysis factors

Lines of business they write – Personal, Commercial, Small Commercial, Life, Group Health, etc.

Do they offer Personal Lines or Commercial Lines Service Centers?

Billing terms or problem issues - finance charges, etc.

A. M. Best Rating

Relationship with automation vendor such as Applied or AMS

Office location – local or regional - claims, underwriting, marketing

Local underwriting authority

Agency underwriting authority

Claim handling rating - based on your experience or reputation

Company adjusters or independent

Organizational changes - important ones

Agency development support offered - education, co-op advertising, producer training

Profit sharing program – threshold, lines of business, bonus incentives

Commissions paid by line of business

Download upload capabilities

Stability of underwriting market - in and out of classes or stable?

Professionalism and knowledge of staff

Elite or VIP agent status program offered – criteria to attain?

Emily Huling  Selling Strategies, Inc.  P.O. Box 200  Terrell, NC 28682
Phone: 888-309-8802   Fax: 888-309-7355