by Mike Stroman
Twenty years ago, that answer would have been an agency that provides both Employee Benefits and Property & Casualty coverages. This all-encompassing business model keeps out the competition. Unfortunately, that’s where most agencies stopped innovating. They’re stuck in the past.
Today’s world of client Risk Management is more complex, and more thoroughly litigated than ever before. Businesses expend significant chunks of management and administrative time just trying to meet Payroll, Human Resource, and Compliance requirements. This is time needlessly wasted, and risky to boot. This has also provided unprecedented opportunity for forward-looking Property & Casualty agencies.
What’s the solution?
The Agency of the Future still provides traditional processes and insurance products. However, it will also offer business owners a broad range of ‘extra’ resources and services that all fall under the Risk Management umbrella. Why? Because if your firm does not provide these services, they will gladly be furnished by your competitors. In other words, these traditionally “extra” services are now core offerings and agencies who can’t offer them to clients, simply won’t be able to compete.
That doesn’t mean that your agency has to staff up to provide every aspect of Risk Management. But, it does mean that to compete, you will have to be connected to resources that cover the Risk Management needs of your clients. You need ‘Experts’ in the areas where you lack expertise. You need to outsource your weaknesses so you can focus on your core strengths.
What are the benefits of expanding your Risk Management offerings?
As a Benefits & Casualty agency your one goal, your raison d’etat, should be to add value to your client’s bottom line. In doing so, your firm becomes an indispensable part of their management strategy and decision-making process. Once you’ve been integrated into their day-to-day operations, improved compensation will follow. The goal of providing added services is to increase the value to your client’s bottom line and eventually, boost your compensation or commission arrangement.
By thinking it through and moving forward with a plan to provide a holistic Risk Management approach to your clients, you’ll both retain clients and be better compensated for your work while you’re at it.