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Four years after the great insurance reform legislation of 2006, Floridians are now approaching 2010’s hurricane season with much concern about the financial strength of the carriers whom have made the promise to be there when the wind starts to blow.  The headlines are disturbing, several smaller companies such as Magnolia and Northern Capital have either gone under or are on the brink of doing so, while larger carriers continue to abstain from growth; some have even left the state altogether because they see writing in Florida as a losing proposition.  So why are we in this predicament? And how can it really get fixed? 

As a multi-line agency we know profitable business comes from multi-lining accounts.  The process of multi-lining your business is usually NOT done exclusively through your web site. In fact if you want to avoid problems in your agency, I sincerely believe that the role of your web site, in the selling process, should be limited to prospecting, and never in closing a sale.  In my opinion if you allow new account sales transactions to occur in your web site you’re doing your client, and not to mention yourself, a disservice.  Sales that occur without the assistance of you, the trained professional, have a terrible track record for retention, losses, and increased E&O claims potential.  Can you say, Bye, Bye contingency bonus?

As a native Floridian and insurance agent I have experienced several hurricanes over the past 25 years of being in the business.  As a prior underwriter, sales manager and insurance agency principal, I have had the opportunity to gain insight from each of these perspectives in regard to coastal property strategies.   If given a chance, history does indeed show us the flaws in most carriers approach in managing their PML (probable maximum loss) exposure to catastrophic storms.

Every agency wants to grow their book of business profitably with the least amount of expense and problems.  That being said, this goal does not happen by itself.  As you finalize your business plans for 2010, I hope you’ve included these two objectives in your agency’s action plans.  Here are the specifics for doing so.

There are many basic things that an agent can do to initiate positive change in their agency.  Fortunately these things are nothing new and are relatively easy to do.  However unfortunately agents have let some of these basic things fall by the wayside when times were good.  So consider this article a slight nudge to you back on track.

Considering the fact over 70% of all insurance consumers begin their search for coverage online, agents need to maximize their online presence now more than ever!  The following trends are helping the agency distribution channel remain the preferred choice for obtaining insurance by today’s online consumers.