August 25, 2023 • 11 mins
Feeling squeezed by the hardening market? Struggle no more as we unravel how to differentiate yourself and grow amidst chaos, particularly in a hard market. With a consultative sales approach and unique insights, this episode of the Preeminent Producer Podcast, get ready to dive into the non-insurable risks that can differentiate you from competitors who focus solely on premium price. This conversation is set to redefine your approach, emphasizing the importance of addressing non-insurable costs that contribute to the overall cost of risk. So tune in, and let's embark on this journey towards organic growth and true agency success.
...
Are you a commercial insurance producer struggling to stand out from the competition? Do you find it challenging to grow your book of business and create a fulfilling career?
Then welcome to The Preeminent Producer Podcast! Each week, we'll be tackling important topics, sharing proven strategies and insights from successful producers that are in the trenches and have traveled the journey to becoming a Preeminent Producer.
You'll discover what it really takes to become Preeminent & build your book of business, in a way that isn’t being taught anywhere else. Our hosts are experts in the field and have built thriving businesses by becoming the most trusted adviser to their clients. Welcome to your journey to becoming a Preeminent Producer.
Let’s dive in!
Ready To Grow Your Book Of Business?
For More Information go to:
https://www.thepreeminentproducer.com/
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
If you are experiencing the effects of a
hardening market, you're goingto want to listen to this
episode.
In this episode of thePre-Eminent Producer Podcast,
our coaches are having aconversation about how to use a
consultative sales approach, howto use differentiation in order
to continue to be successfuland continue to grow your book
of business in a hardeningmarket.
(00:21):
You guys are feeling theeffects of it.
You're slammed with crazinessand busyness.
You don't want to miss thisepisode, so let's dive in.
Speaker 2 (00:30):
Are you a commercial insurance producer struggling to
stand out from the competition?
Do you find it challenging togrow your book of business and
create a fulfilling career?
If so, then welcome to thePre-Eminent Producer Podcast.
Each week, we'll be tacklingimportant topics, sharing proven
strategies and insights fromsuccessful producers that are in
the trenches and have traveledthe journey to becoming a
(00:52):
pre-eminent producer.
You'll discover what it reallytakes to become pre-eminent and
build your book of business in away that isn't being taught
anywhere else.
Our hosts are experts in thefield and have built thriving
businesses by becoming the mosttrusted advisor to their clients
.
Welcome to your journey tobecoming a pre-eminent producer.
Let's dive in.
Speaker 3 (01:13):
You know, rick, one thing that I've been
experiencing I talk with anumber of agents throughout the
country.
I'm kind of a regular basis.
You know I'm in SouthernCalifornia.
As you know, we're having ahardening market here,
especially on the personal lineside of things.
But I focus on commercial, butdefinitely commercial too.
We're having a hardening market, less markets, rates are going
(01:36):
up and whatnot.
It occurred to me that the netcost of risk approach is even
more important, I think, in ahard market.
And just here's what you'vebeen experiencing.
Speaker 4 (01:49):
Well, very much the same, Matt.
I live in Arizona and we are welike to say we are
californicated, if I can usethat kind of word, because
things that happen in Californiableed over into Arizona.
You are such a huge economy anda huge influence on us that
when those kind of things bleedover, this is a very strange
(02:11):
market, and especially for a lotof new producers and I knew I
mean maybe the last five or 10years who have never been
through a challengingmarketplace, and this is
definitely a challengingmarketplace so the consultative
sale becomes very, veryimportant.
It's the other thing.
Before we even get into that,don't?
(02:33):
I know you're really busy, Iknow, matt, you're really busy.
People watching this podcast areprobably really busy.
Don't get too busy to getbetter.
In other words, there are a lotof things out there that we
need to still improve our game,maybe more so now than ever
before.
I mean, if you're going to be aconsultive salesperson and in
(02:55):
this marketplace that's what ittakes Then you need tools and
you need equipment to helppeople weather this big storm
that we're in.
What if we could approachsomebody whose rates have gone
up by 10 or 15 percent, butthrough tools that we have a
tool like Busisher, for example,we can show them how to save
(03:16):
money in other areas.
So the net cost becomes maybecost neutral or not the big hit
that they thought it could be.
Speaker 3 (03:25):
Yeah, you know, that's completely right, and
when you were talking I wasactually thinking of the
consultative services and thatwhole approach, and you
mentioned bussisher and thevarious legal consulting and
whatnot.
It becomes even more importantin this environment.
There's some advantages to thehardening market.
(03:47):
As a producer, obviously, itcan be a little easier to open
those doors In a super softmarket.
When people are looking at 25or 30% rate decreases and
they're so focused on just thepremium price they're often more
satisfied or not worried aboutand they'll devote their
attention somewhere else.
So I find it's a little easierright now to open those doors
(04:12):
and then easier, I think, thanever to have that consultative
kind of full Okay, one of thewhat I call one of the amazing
discoveries that I made early onis that the insurance industry
agency industry as a whole wasdoing, and probably still is
doing, a pretty poor jobgenerally of addressing what we
(04:36):
call we've discussed this beforenon-insurable risks, right.
Yet those non-insurable risksand costs can contribute heavily
to that net overall cost ofrisk and if you have tools, like
you and I do, to address those,it can put a whole different
(04:57):
spin on the entire cost of riskconversation that some brokers
are not even having thatconversation at all with their
clients and prospects.
They're focusing merely on thepremium price.
Speaker 4 (05:10):
Yeah, true, I think, more than ever, matt, now's the
time to be a zebra in a herd ofhorses.
It really is.
I know that's kind of aschmaltzy thing to say, but the
point of differentiation now ismore important than ever.
Couple of other things that arereally important is we've
talked about this in some of ourpodcasts before, own your
calendar, make sure you arespending your time where you
(05:32):
need to spend your time, becausewe are all really busy these
days and, by the way, this isgoing to sound crazy in this
market where rates are going up.
Continue to work on yourpipeline, a pipeline.
Show me your pipeline, I'llshow you your career.
I'll show you your success.
We have to continue to try tobuild, because we chatted about
this earlier we kind of havethis false sense that premiums
(05:53):
are going up and we arecommissioned animals and we're
going to make more money, andthat's good news.
We're working harder, we'reworking for our clients.
We're going to make good money.
We're going to make more moneybecause we're getting rated
prices, but that's not trueagency growth.
True agency growth is organicgrowth.
We're adding new clients andthose point of differentiations,
(06:13):
the consultative sales thatwe're doing, focusing on the net
cost of risk will be one ofthose things that differentiate
us and they're gonna open doorsand they're gonna help us obtain
new clients.
Speaker 3 (06:27):
You know a couple of quick comments to that One.
What I've generally experiencedis when I do a good job of
getting into those non-insurableareas that a lot of my
competitors just don't evenaddress, they don't even get
into it, it does a couple ofthings Just by asking the right
questions.
I'd say those initialconversations with insured.
(06:48):
It differentiates me right offthe bat.
You know that that guy'sthinking he's not gonna
articulate it, but you know he'sthinking, gee, this Starchy
guy's kind of getting into areasthat my current guy never even
discussed.
And, yeah, he's got some pointshere.
So what I found is that theperfect tool for that maybe the
(07:08):
only tool out there really iscertainly the most comprehensive
tool is the bussisher.
You know consulting or thatside of the equation.
It just walks you right throughit.
And I guess the point I reallywanted to make is it's not
insignificant.
I mean it's not like, okay,here's my premium quote, but
because I'm taking this net costof risk, look, because of my
(07:29):
consulting that's availablethrough the bussisher product,
you're gonna save $1,000 more ayear.
No, I mean you've been talkingwell into the five figures
sometimes when you look at thecost that somebody's had, you
know, in the past having to hiretheir own attorneys and whatnot
.
So it can be significant, Iguess, is my point.
Speaker 4 (07:47):
Oh, it really can.
I think, like you, matt, I'vebeen doing this for a very long
time and there are a lot oftools out there for consultive
sales.
I don't know, and we use someof them, but I don't know that I
found one broader thanbussisher or has more punch.
And again, it's all that pointof differentiation.
If I can come in and show youthings and have a conversation
(08:10):
no one else is having with you,everybody else is focusing on
product and price anddeductibles and those kind of
things and we can have aconversation well above that
level.
That's dealing with the netcost of your overall operation.
That's a conversation thatnobody else is having with them
because they can't.
They don't have the horsepowerwith a tool like bussisher
(08:31):
that's gonna allow them to dothat.
There are other tools to bringsome of those into the mix as
well, but that's a damn goodthing to have in your back
pocket, or actually your frontpocket, to lead the conversation
.
Speaker 3 (08:45):
Absolutely and, as I mentioned, those can be
significant.
But let's say it's only onaverage.
I'm gonna really low ball it.
Let's say the additional costsavings by going into the
consultative, non-insurable netcost of risk approach with
bussisher.
Let's say that that's onlyevery time.
15%, it's really more.
In my experience it's reallymore.
(09:06):
Varies with the risk.
But how would you like to?
Every time you're going,because you're taking this
approach, every time you'regoing into a presentation
knowing that you're at least 15%below.
Well, you know what, in thesoft market that might not be
that big a deal and the kind ofrising rate market we're in now
that's a pretty big advantageright there.
Speaker 4 (09:28):
You bet we've had this conversation before where
we say, hey, producers out there, they're spending before this
market.
They're spending more moneywith you than they are most
likely their attorney and theirCPA and many times put together
that's significant dollars andour whole thing is we're trying
(09:49):
to attack areas.
It's a conversation that no oneelse is having with them.
I mean, when somebody looks atme during these conversations
and we're talking about savingsthat we can bring to them, like
wow, I've never had this kind ofconversation and I say then
I've done my job because we'relike no other insurance broker,
(10:09):
because not only are we doingthe premiums, the coverage, but
we're doing net cost of risk and, in some cases, net cost of
your operation.
Then if we could save yououtside the insurance arena
$50,000 on money you're alreadyspending, wouldn't that be
important to you?
(10:29):
I mean, maybe your organizationis such that 50 grand isn't a
big deal.
I know in mind it is and wewould love to try.
We love having thoseconversations.
Speaker 1 (10:39):
All right, I hope you got a lot out of that.
I hope you were encouraged.
If you are feeling the effectsand just the pressure of a
hardening market, I hope youalso caught what Rick Gregson
said about don't let yourself betoo busy to get better.
I thought that was great andthat really is what we are all
about on our journey topreeminence and becoming a
preeminent producer.
So if you'd like moreinformation about how you could
(11:01):
actually work with our coachesand get coaching from them,
visit us atthepreeminentproducercom and
find out more about how you cancontinue to thrive in a
hardening market.
Until next time, guys, we'llsee you in the next episode of
the Preeminent Producer Podcast.
Speaker 2 (11:19):
Thanks so much for joining us on this episode of
the Preeminent Producer Podcast.
If you're enjoying the show,please feel free to subscribe,
rate and leave a review whereveryou listen to your podcasts.
That helps others find the showand we greatly appreciate it.
Once again, thanks for joiningus and we'll catch you in the
next episode of the PreeminentProducer Podcast.
If you are experiencing the effects of a
hardening market, you're goingto want to listen to this
episode.
In this episode of thePre-Eminent Producer Podcast,
our coaches are having aconversation about how to use a
consultative sales approach, howto use differentiation in order
to continue to be successfuland continue to grow your book
of business in a hardeningmarket.
(00:21):
You guys are feeling theeffects of it.
You're slammed with crazinessand busyness.
You don't want to miss thisepisode, so let's dive in.
Speaker 2 (00:30):
Are you a commercial insurance producer struggling to
stand out from the competition?
Do you find it challenging togrow your book of business and
create a fulfilling career?
If so, then welcome to thePre-Eminent Producer Podcast.
Each week, we'll be tacklingimportant topics, sharing proven
strategies and insights fromsuccessful producers that are in
the trenches and have traveledthe journey to becoming a
(00:52):
pre-eminent producer.
You'll discover what it reallytakes to become pre-eminent and
build your book of business in away that isn't being taught
anywhere else.
Our hosts are experts in thefield and have built thriving
businesses by becoming the mosttrusted advisor to their clients
.
Welcome to your journey tobecoming a pre-eminent producer.
Let's dive in.
Speaker 3 (01:13):
You know, rick, one thing that I've been
experiencing I talk with anumber of agents throughout the
country.
I'm kind of a regular basis.
You know I'm in SouthernCalifornia.
As you know, we're having ahardening market here,
especially on the personal lineside of things.
But I focus on commercial, butdefinitely commercial too.
We're having a hardening market, less markets, rates are going
(01:36):
up and whatnot.
It occurred to me that the netcost of risk approach is even
more important, I think, in ahard market.
And just here's what you'vebeen experiencing.
Speaker 4 (01:49):
Well, very much the same, Matt.
I live in Arizona and we are welike to say we are
californicated, if I can usethat kind of word, because
things that happen in Californiableed over into Arizona.
You are such a huge economy anda huge influence on us that
when those kind of things bleedover, this is a very strange
(02:11):
market, and especially for a lotof new producers and I knew I
mean maybe the last five or 10years who have never been
through a challengingmarketplace, and this is
definitely a challengingmarketplace so the consultative
sale becomes very, veryimportant.
It's the other thing.
Before we even get into that,don't?
(02:33):
I know you're really busy, Iknow, matt, you're really busy.
People watching this podcast areprobably really busy.
Don't get too busy to getbetter.
In other words, there are a lotof things out there that we
need to still improve our game,maybe more so now than ever
before.
I mean, if you're going to be aconsultive salesperson and in
(02:55):
this marketplace that's what ittakes Then you need tools and
you need equipment to helppeople weather this big storm
that we're in.
What if we could approachsomebody whose rates have gone
up by 10 or 15 percent, butthrough tools that we have a
tool like Busisher, for example,we can show them how to save
(03:16):
money in other areas.
So the net cost becomes maybecost neutral or not the big hit
that they thought it could be.
Speaker 3 (03:25):
Yeah, you know, that's completely right, and
when you were talking I wasactually thinking of the
consultative services and thatwhole approach, and you
mentioned bussisher and thevarious legal consulting and
whatnot.
It becomes even more importantin this environment.
There's some advantages to thehardening market.
(03:47):
As a producer, obviously, itcan be a little easier to open
those doors In a super softmarket.
When people are looking at 25or 30% rate decreases and
they're so focused on just thepremium price they're often more
satisfied or not worried aboutand they'll devote their
attention somewhere else.
So I find it's a little easierright now to open those doors
(04:12):
and then easier, I think, thanever to have that consultative
kind of full Okay, one of thewhat I call one of the amazing
discoveries that I made early onis that the insurance industry
agency industry as a whole wasdoing, and probably still is
doing, a pretty poor jobgenerally of addressing what we
(04:36):
call we've discussed this beforenon-insurable risks, right.
Yet those non-insurable risksand costs can contribute heavily
to that net overall cost ofrisk and if you have tools, like
you and I do, to address those,it can put a whole different
(04:57):
spin on the entire cost of riskconversation that some brokers
are not even having thatconversation at all with their
clients and prospects.
They're focusing merely on thepremium price.
Speaker 4 (05:10):
Yeah, true, I think, more than ever, matt, now's the
time to be a zebra in a herd ofhorses.
It really is.
I know that's kind of aschmaltzy thing to say, but the
point of differentiation now ismore important than ever.
Couple of other things that arereally important is we've
talked about this in some of ourpodcasts before, own your
calendar, make sure you arespending your time where you
(05:32):
need to spend your time, becausewe are all really busy these
days and, by the way, this isgoing to sound crazy in this
market where rates are going up.
Continue to work on yourpipeline, a pipeline.
Show me your pipeline, I'llshow you your career.
I'll show you your success.
We have to continue to try tobuild, because we chatted about
this earlier we kind of havethis false sense that premiums
(05:53):
are going up and we arecommissioned animals and we're
going to make more money, andthat's good news.
We're working harder, we'reworking for our clients.
We're going to make good money.
We're going to make more moneybecause we're getting rated
prices, but that's not trueagency growth.
True agency growth is organicgrowth.
We're adding new clients andthose point of differentiations,
(06:13):
the consultative sales thatwe're doing, focusing on the net
cost of risk will be one ofthose things that differentiate
us and they're gonna open doorsand they're gonna help us obtain
new clients.
Speaker 3 (06:27):
You know a couple of quick comments to that One.
What I've generally experiencedis when I do a good job of
getting into those non-insurableareas that a lot of my
competitors just don't evenaddress, they don't even get
into it, it does a couple ofthings Just by asking the right
questions.
I'd say those initialconversations with insured.
(06:48):
It differentiates me right offthe bat.
You know that that guy'sthinking he's not gonna
articulate it, but you know he'sthinking, gee, this Starchy
guy's kind of getting into areasthat my current guy never even
discussed.
And, yeah, he's got some pointshere.
So what I found is that theperfect tool for that maybe the
(07:08):
only tool out there really iscertainly the most comprehensive
tool is the bussisher.
You know consulting or thatside of the equation.
It just walks you right throughit.
And I guess the point I reallywanted to make is it's not
insignificant.
I mean it's not like, okay,here's my premium quote, but
because I'm taking this net costof risk, look, because of my
(07:29):
consulting that's availablethrough the bussisher product,
you're gonna save $1,000 more ayear.
No, I mean you've been talkingwell into the five figures
sometimes when you look at thecost that somebody's had, you
know, in the past having to hiretheir own attorneys and whatnot
.
So it can be significant, Iguess, is my point.
Speaker 4 (07:47):
Oh, it really can.
I think, like you, matt, I'vebeen doing this for a very long
time and there are a lot oftools out there for consultive
sales.
I don't know, and we use someof them, but I don't know that I
found one broader thanbussisher or has more punch.
And again, it's all that pointof differentiation.
If I can come in and show youthings and have a conversation
(08:10):
no one else is having with you,everybody else is focusing on
product and price anddeductibles and those kind of
things and we can have aconversation well above that
level.
That's dealing with the netcost of your overall operation.
That's a conversation thatnobody else is having with them
because they can't.
They don't have the horsepowerwith a tool like bussisher
(08:31):
that's gonna allow them to dothat.
There are other tools to bringsome of those into the mix as
well, but that's a damn goodthing to have in your back
pocket, or actually your frontpocket, to lead the conversation
.
Speaker 3 (08:45):
Absolutely and, as I mentioned, those can be
significant.
But let's say it's only onaverage.
I'm gonna really low ball it.
Let's say the additional costsavings by going into the
consultative, non-insurable netcost of risk approach with
bussisher.
Let's say that that's onlyevery time.
15%, it's really more.
In my experience it's reallymore.
(09:06):
Varies with the risk.
But how would you like to?
Every time you're going,because you're taking this
approach, every time you'regoing into a presentation
knowing that you're at least 15%below.
Well, you know what, in thesoft market that might not be
that big a deal and the kind ofrising rate market we're in now
that's a pretty big advantageright there.
Speaker 4 (09:28):
You bet we've had this conversation before where
we say, hey, producers out there, they're spending before this
market.
They're spending more moneywith you than they are most
likely their attorney and theirCPA and many times put together
that's significant dollars andour whole thing is we're trying
(09:49):
to attack areas.
It's a conversation that no oneelse is having with them.
I mean, when somebody looks atme during these conversations
and we're talking about savingsthat we can bring to them, like
wow, I've never had this kind ofconversation and I say then
I've done my job because we'relike no other insurance broker,
(10:09):
because not only are we doingthe premiums, the coverage, but
we're doing net cost of risk and, in some cases, net cost of
your operation.
Then if we could save yououtside the insurance arena
$50,000 on money you're alreadyspending, wouldn't that be
important to you?
(10:29):
I mean, maybe your organizationis such that 50 grand isn't a
big deal.
I know in mind it is and wewould love to try.
We love having thoseconversations.
Speaker 1 (10:39):
All right, I hope you got a lot out of that.
I hope you were encouraged.
If you are feeling the effectsand just the pressure of a
hardening market, I hope youalso caught what Rick Gregson
said about don't let yourself betoo busy to get better.
I thought that was great andthat really is what we are all
about on our journey topreeminence and becoming a
preeminent producer.
So if you'd like moreinformation about how you could
(11:01):
actually work with our coachesand get coaching from them,
visit us atthepreeminentproducercom and
find out more about how you cancontinue to thrive in a
hardening market.
Until next time, guys, we'llsee you in the next episode of
the Preeminent Producer Podcast.
Speaker 2 (11:19):
Thanks so much for joining us on this episode of
the Preeminent Producer Podcast.
If you're enjoying the show,please feel free to subscribe,
rate and leave a review whereveryou listen to your podcasts.
That helps others find the showand we greatly appreciate it.
Once again, thanks for joiningus and we'll catch you in the
next episode of the PreeminentProducer Podcast.
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