Many years ago, my organization (Agency Management Resource Group) created a program called the Ultimate Account Manager. Originally presented as an on-site program for an agency with relatively new Account Managers, we quickly recognized that many independent insurance agencies were experiencing some level of pain at the Account Manager position, and we felt that lack of training was one of the root causes. Clearly, we were ahead of our time on this issue, because for more than a decade we literally could not give this program away. It’s likely that agencies and their service staff members were managing, although perhaps not thriving, in an environment where additional pressures and challenges were being presented daily.​ 

Learning new and ever-evolving technologies, increased consumer service expectations and shifting of more and more responsibilities from the insurance carrier to the agency were all combining to make the job of an Account Manager more challenging than it had ever been before.

It seems we have now reached a boiling point, and agencies and Account Managers across the country are begging for help. The demand for our program has not only risen, but so has the utter frustration and feelings of inadequacy experienced by many bright, talented individuals who seek to provide the best customer service experience to the agency’s clients only to be thwarted in their efforts by time constraints and the increasing demands put on them.​

So, what can an agency do to reduce the stress, create a culture of excitement and improve the morale of their service staff? The easy answer has always been to increase staff, and yet that often does not resolve the issues – in fact in most cases it only makes things worse. It seems to us that resolution lies in accepting the fact that we cannot continue to do business “the way we’ve always done it” while expecting more from each individual and believing we are truly providing extraordinary service to our clients. (Someone once defined this as “insanity.”)

As we go throughout the country working with incredibly talented, motivated and caring Account Managers, we often ask them what are tasks they are asked to do that they feel do not provide true value-added service to their clients. There are about ten that are mentioned over and over again, and we believe it’s time to simply stop doing certain things in order to free up time for what our customers truly find valuable, such as risk management advice, coverage analyses and gaining a true understanding of the issues they face.

In no particular order, the following are ten things we think every independent agency should resist doing in order to greatly improve the level of service to their client. We call it simply the ”STOP IT!” list.​

TAKING CASH PAYMENTS. Not only is this inefficient as the cash must somehow find its way to the bank and insurance carrier, it’s dangerous. One agency told us that between the first and fifth of each month employees collected thousands of dollars in cash, which they kept in their office and carried to the bank every evening. If you had a client who was doing that, wouldn’t you recommend they stop as a sound loss control recommendation? STOP IT!

SWEEPING OR UPLOADING THE CLIENT’S DIRECT BILL PAYMENT. We don’t want to do anything to discourage a face-to-face meeting with a client, but aren’t there more important topics for those interactions than this? Typically, the payment is already late or overdue when left at the agency, creating possible E&O exposures if not processed on a critical basis. STOP IT!

CALLING CHRONIC, LATE-PAY, DIRECT-BILL CLIENTS. Seriously – have we not gone over this ad nauseam in the past? You set a dangerous precedent and train the clients they don’t have to pay until they hear from you. Of course, Murphy’s Law will kick in at some point, and the call won’t be made, the policy will cancel, and you’ll be on the hook for the uncovered loss. In addition, do you know how many steps that is for the Account Manager? The customer can’t be reached, so we check the carrier website every day to see if the payment has been made. STOP IT!​

RUNNING MVRs. In addition to compliance with myriad state and federal privacy laws, when an Account Manager runs an MVR on a client’s prospective employee, he or she is put in the awkward position of giving a “thumbs-up” or “thumbs-down” hiring recommendation to the Insured. Why not provide guidelines to the client when hiring drivers and have them require that the prospective employee provide a current copy of their own MVR, something available quickly and inexpensively online in most states? STOP IT!

ASSEMBLING POLICIES IN THREE-RING BINDERS. First of all, doesn’t that necessarily mean you are sending paper copies of policies? In many cases, the policy was received in the agency electronically, then printed out and placed in a binder. In addition, agencies that do this “stockpile” the policies for large commercial accounts until all have been received. That’s a dangerous practice since the client does not have the opportunity to review the policy for accuracy at the earliest possible time. STOP IT!

QUOTING EVERYTHING THAT FALLS ACROSS THE THRESHOLD. We know that many agencies, especially those in small or rural towns, feel they need to provide a quote to everyone who asks. But in this day of specialization, is that really a good strategy? Hit ratios on this business tend to be very low and the buyers are often only interested in a lower price. In addition, minimal information is usually gathered that often leads to underinsurance and a possible E&O claim down the road. STOP IT!

QUOTING SMALL BUSINESS WITH MULTIPLE CARRIERS. See above. If you know what kind of business fits your agency’s target profile, then you should also have a pretty good idea which carrier will best provide for their needs. We recognize there could be a substantial price differential between one carrier and another, but if you stay in your lane, you will quickly notice this and stop quoting the one who is consistently uncompetitive. STOP IT!

WORKING ON NEW BUSNESS LESS THAN SIXTY DAYS PRIOR TO EFFECTIVE DATE. When an agency does get a bona fide opportunity to write a large commercial account, it takes a lot of time, resources, and effort on the part of the agency and the insurance company to put things together in a way that will help the producer obtain the business. Most agencies start their renewal process 90 to 120 days out, recognizing the importance of accuracy. But that’s a customer we already know – how do we think we can do our professional best in less time with a new relationship? STOP IT!

DEFINING SERVICE FROM YOUR OWN PERSPECTIVE, NOT THE CUSTOMER’S. There are only so many hours in an Account Manager’s day. Do you want them spending their time talking with your clients, building relationships, providing professional advice and counsel, or processing transactions and chasing around people who can’t manage to pay their bills on time? If your clients get a vote, we can assure you what they would choose. STOP IT!