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Best insurance agents look out for the clients’ bottom line, not their own

Posted on Monday, May 09, 2016 in News / Announcements, Employee Benefits, Business, Public Entity

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Roeding Insurance - support@systemsinsight.com

Best insurance agents look out for the clients’ bottom line, not their own

Being a traditional, independent insurance agent is a unique profession, unlike any other sales position. Think about it: what other sales professional’s goal is to drive down your insurance premiums, which is the very same revenue stream that affects his or her take-home pay at the end of the day? 

In essence, if insurance agents do their job effectively, then they are going to make less money at the end of the day. Exterior market conditions will often cause premiums to go up and down, but the goal of a Roeding Insurance agent is to keep those premium costs down as the market fluctuates and then find the best coverages for the best rates. 

Case in point: a client we insured was involved in a commercial fleet fatality. In the months that followed, a multimillion-dollar lawsuit ensued that could have exceeded the limits of liability and drained the owner’s pockets. During the discovery phase, we were able to prove that the client had solicited our in-house loss control services to provide multiple driver training sessions to the driver involved. The case was later settled for much less. At the very next renewal, we were able to secure a decrease in the client’s auto premiums, even with the multimillion-dollar reserve required for a future loss. How about that for earning your keep? While working with the insurance adjusters on this particular claim, their underwriting team saw our client’s sincere efforts to control and minimize their risk exposure, and in the end they felt it didn’t warrant a premium increase.

The moral of the story? Although we lowered our own revenues by keeping our client’s costs down, in return we earned a client for life. Our accomplished insurance agents will tell you that they don’t earn a living by watching their clients’ premiums increase but by driving down their total cost of risk and becoming that trusted adviser looking out for their best interest. 

The most common mistake people make when selecting an insurance agent is that they do not think of him or her as an insurance adviser. True insurance advisers will impart a much more holistic risk-management solution. They can help you or your business in so many other ways and can become part of a trusted partnership.

When finding an insurance adviser, consider the following:

  • Expertise: Find an insurance adviser with the right level of expertise who understands your needs. 
  • Core values: Line yourself up with an insurance adviser that shares the same values as you
  • Accessibility and Open Communication: When you are choosing an insurance adviser, select one who is going to be available and accessible. 
  • Goal driven: Look for an adviser who is focused on price but shares your goals. Their aim is to drive down your total cost of risk by reducing or eliminating risk exposure and improving your business over the long haul. These advisers may not set low premiums as their very top priority, but the effect of their holistic approach will contribute even more to your bottom line in the long run.

When you find an insurance adviser that you believe in, you should trust his or her recommendations as it relates to your risk exposures. You’re hiring an expert to manage your risks, and second-guessing him or her will offer few rewards. Remember that loyalty becomes the residual outcome of trusting your adviser, and you both share in the success if you give it enough time.

Be safe, my friends.