Planning Season with Carriers- How Do You Plan for the New Year

[shawnmwalker]

It is that time of year again when we plan with the carriers for the new year.

One: How do these planning sessions go in your office. (Scenarios) Funny Stories welcome, on this one.

Two: How do you specifically plan for 2015.

Three: Is Planning with the carrier beneficial to your agency? If So why or why not?

Four: Do you take your commitments with your carriers seriously?


Outside of Planning with Carriers, How do you plan for the coming year? Do you?

I always start with a SWOT analysis of the business.

 

[shawnmwalker]

Re: Planning Season with Carriers- How Do You Plan for Hte New Year

So No One plans for the future of their agency, we just ebb and flow with the rates we are provided?

I expected that to be the case for a very large % of agencies. I did not expect Silence.

NO One Plans? Sets goals? No One Admits they are on the 50 yard line and set a plan in place to advance the ball further next year?

 

[insurance1822]

Re: Planning Season with Carriers- How Do You Plan for Hte New Year

So No One plans for the future of their agency, we just ebb and flow with the rates we are provided?

I expected that to be the case for a very large % of agencies. I did not expect Silence.

NO One Plans? Sets goals? No One Admits they are on the 50 yard line and set a plan in place to advance the ball further next year?

I take my YTD w/ each carrier & trend it to year's end. Then I'll assume 5% growth w/ each carrier just to show face..I don't take it too seriously. They change their appetites & rules too much. Days in the life of 1822 are very simple. I work all new referrals that come in & kiss realtor/mortgage butt the rest of the day thanking them for their business & seeking new ones. My assistant follows up on prospects. I have however dialed back on the "seeking new" referral sources because my book is big enough that I'm starting to realize I'd rather chill the hell out & enjoy my family instead of being obsessed w/ growth growth growth.

I'm not saying this to be arrogant..but I don't have time to sit down & play the game of planning and "new marketing" plans like MANY bum agents who never put up numbers. Close your excel spreadsheet, stop reading books, stop talking about all these stupid ideas & go meet COI's. Dress nice, smile, don't be a slob & ask for business and more importantly thank those who refer & you won't have time to sit down & worry about projections. It all will just HAPPEN.

..you could however trend numbers for investing in producers to make an argument of accelerated growth (or slowing your shrinking based off how big you are..) But again..I'm at the "who gives a $hit point."

 

[CaptiveGuy]

Re: Planning Season with Carriers- How Do You Plan for Hte New Year

I have however dialed back on the "seeking new" referral sources because my book is big enough that I'm starting to realize I'd rather chill the hell out & enjoy my family instead of being obsessed w/ growth growth growth.

I'm not saying this to be arrogant..but I don't have time to sit down & play the game of planning and "new marketing" plans like MANY bum agents who never put up numbers. .

Amen, I'm at the point where any additional premium will make my life better but I don't need to grow like my first 3 years. I tell each carrier rep how many referrals I get per month and that the most competitive carrier that fits the client's needs gets the business.

Do carriers let us know if they plan to increase rates or shut down classes of business in 2015? Why do we have to make a commitment once you have at least $100k with each carrier.

 

[insurance1822]

Re: Planning Season with Carriers- How Do You Plan for Hte New Year

Amen, I'm at the point where any additional premium will make my life better but I don't need to grow like my first 3 years. I tell each carrier rep how many referrals I get per month and that the most competitive carrier that fits the client's needs gets the business.

Do carriers let us know if they plan to increase rates or shut down classes of business in 2015? Why do we have to make a commitment once you have at least $100k with each carrier.

^^^^ I like that...VERY good point. Ultimately shawn-sky-walker isn't a company guy as much as he's a liaison for the group (so he's strategically playing both parts..) probably more so "agent" side based off how he most likely gets compensated. I try to be cordial & go w/ the flow for our carriers because I've seen many agents make their lives harder w/ the carriers by being needles in their side's. Company reps catch on to agents who complain & bitch all the time & I'd rather be on the other side of the equation.

You just never know when that rep may appreciate your relationship & facilitate you purchasing a BOB :-)

 

[shawnmwalker]

Re: Planning Season with Carriers- How Do You Plan for Hte New Year

We plan very seriously annually to advance our business and agency size. Reduce wasted resources, invest in new resources, increase profit, reduce LR's, increase national footprint, ect. Take the carriers out of the mix, we plan.

We also plan very seriously with a handful of carriers we represent.

 

[AZDave]

Re: Planning Season with Carriers- How Do You Plan for Hte New Year

It is that time of year again when we plan with the carriers for the new year.

One: How do these planning sessions go in your office. (Scenarios) Funny Stories welcome, on this one.

Two: How do you specifically plan for 2015.

Three: Is Planning with the carrier beneficial to your agency? If So why or why not?

Four: Do you take your commitments with your carriers seriously?


Outside of Planning with Carriers, How do you plan for the coming year? Do you?

I always start with a SWOT analysis of the business.

Your looking out for your group, and should be. Where is your group Q3 results looking. How far off of bonus numbers are you. What will it take to make the numbers for carrier X. Always focusing on growth, loss ratio with each and every one.

At the agency level, I focus on why carrier X has raised rates 15% while showing a profit. I focus on why carrier Y has raised rates by 6% while showing a profit. I focus on so many current long term customers busting my balls about rate increases, and why they can get a significantly lower rate from Z. Shop Shop Shop.

Of course the agent relationship goes deep with this clientele. Yet I have never seen such movement to the 'lowest rate' that I am seeing now.

Hope the bleeding stops. So much work anymore in auto/home. My commercial book is just the opposite - controlled.


Dave

 

[insurance1822]

Re: Planning Season with Carriers- How Do You Plan for Hte New Year

We plan very seriously annually to advance our business and agency size. Reduce wasted resources, invest in new resources, increase profit, reduce LR's, increase national footprint, ect. Take the carriers out of the mix, we plan.

We also plan very seriously with a handful of carriers we represent.

1.) "We plan very seriously annually to advance our business and agency size." What exactly does this mean? How can you contribute to advancing business or agency size? Your agents write when they write, so unless you bring in new markets to fill in gaps they aren't able to capture..what can you do? Are you going to say "Hey Travelers we want our agencies to grow bigger so give better rates?" Please explain? What it means to me is you're concerned w/ your profit sharing negotiations which are where you make your money (and there's no problem w/ that.) But we have no idea where the business will get placed & we're certainly not going to put the groups profit sharing interest over our clients. If we can save $700 w/ a non-profit sharing carrier (or one that's not as big as others) we'll do that instead of saving $350 and plopping w/ a carrier who *may* give more profit share.

2.) "Reduce wasted resources, invest in new resources" - Please explain this? What resources are you guys investing into the group. Again..we will write what we write. Do you guys pay for commercial producer schools for agents to help get more business? NO..so what are you doing? What's there to invest in? Are you buying leads for the group? Providing marketing dollars? Building out a website to drive traffic to the group so you can distribute leads? Paying for a conference room to bring in a carrier rep to boast their product & why it's better (because maybe their carrier is a big profit sharing carrier?)

3.) "increase profit, reduce LR's" - AKA put restrictions on what your agents can write to push a LR (hopefully) down a few points to secure that bigger bonus for you? Try to trend how much your guys write with Safeco then assume how much less they'll write w/ certain profit restrictions in hopes to derive a LR you may hit (or may not..) Yeah that COULD put more bonus in your pockets as group management BUT how much long term business are you agents losing because they may not be able to place it? Please explain.

4.) "increase national footprint" - umm....what?

I understand you guys need to make your money but it sounds like *typical* corporate talking points that don't translate into real life actions.

 

[shawnmwalker]

I understand. Let's back up. What planning ought an agency do, APART from the carrier meetings where they come in and ask for Commitments? Most of the time that is not PRACTICAL PLANNING. (Initially I was looking for your hilarious sarcastic comments on that topic.- Ya'll have failed me on that front.)

However - What practical things do you do actually do to prepare for 2015?

Are there processes in the agency that need to be tweaked?
Is there a desire to get larger or maintain?
Do you set a goal of how many quotes you want to do every week of next year?
Do you want to start a website next year?
Fire someone?
Hire two producers?
Get four more lead providers?

How do we (Agencies) plan for a new year or does it just come and we just keep moving along with the ebb and flow of agency life?

Is there a five year vision to accomplish? A 2020 goal?

Ins 1822, these questions may sound like typical corporate talk, but go to the thread about what we were doing before Ins. Some of our peers are not accustom to asking these questions? I'm not sure a little solid planning and projecting is a bad thing in an agency.

I will openly admit Premier's planning sessions will be very different than a typical mom/pop agency.



One last thing, just like the SIAA group you belong to, we too share extensively the Profit Sharing with the agencies in the group. We do manage that closely for the benefit of our agents and the reputation of the group.

 

[insurance1822]

Sure planning is a good thing & so are simple objectives such as "write business." That's my plan every single year..write..business.

For me I do insurance for the money & I know so long as I write business like I do my pay will substantially increase way more then it should every year. So I focus on keeping my head down & writing business w/ the intent to pick my head up once my "wants" for material objects are met along w/ my financial responsibilities to my kids for schooling & myself for retirement. Then my plan will shift to "who cares" and golf, exercise more...hire another assistant to write my business and maintain an income that's way higher then it should be for what we do. Maybe invest in a dunkin doughnuts or Rita's? Maybe take more vacations to liberal infested San Fran-