• Combating Premium Erosion in a Troubled Market

    Posted Jun 28, 2017 in Articles

    Picture this...  A hardening market that normally leads to revenue increases -- being countermanded by premium erosion due to lower sales and payrolls. Some of you might be tempted to hunker down and ride out the storm when this occurs. Others may throw up your hands in resignation, thinking that there is nothing that can be done. All of you will recognize that status quo will yield only diminishing returns for your investment of time and attention and, I hope, most of you will be compelled to do something about it. Here are a few suggestions that will help:

    1. Remember that in good times and in bad, we are here to help our clients. Who are we to only enjoy the wave of prosperity during the good times and abandon those who need us the most when that wave crashes on the beach? These are the times when we do our best work. These are the times that our work is most appreciated. These are the times that we will be remembered for. We’ll be remembered equally for what we do and for what we don’t do. For our presence or for our absence. Time to un-seat from the desk chairs and get busy.
    2. Opportunity still abounds if you know where to look. One of the best strategies for helping clients to lower their premium spend while still being able to provide heightened levels of value is the Total Account Sale. Rather than approach a prospect with the idea of peddling a line of business, put your consultant cap on and assess their entire insurance spend. Are their programs harmonized? Are there redundancies? Are they over insured in some areas and under insured in others? The best place to account round and cross-sell is not, as commonly believed, at time of renewal. It is best done during the pre-sale assessment.
    3. Look for emerging industries. So you specialized in an industry that is stagnant or declining – I feel your pain. Now pull it together and pick another that is emerging. Yes, home builders and developers might be struggling, but agriculture is booming. Yes, hospitality and retail are may be suffering, but energy and technology are flying high. Get creative, do some homework, and hit the street.

    You are not a victim of circumstance; you are a first-responder in any economic crisis. You have the freedom to accept this responsibility or you can choose to diminish your ability to make a positive and prosperous difference and do nothing. Just remember that while you are contemplating your next move, somebody else has already made their own.

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