Insurance Consultants Of Maine Newsletter

Insurance Consultant's Newsletter
Scott Simmonds, CPCU, ARM
October, 2005

Helping Insurance Experts Build Great Consulting Practices
www.icmentor.com

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You're getting this email because you asked for information about insurance consulting, asked to be added or bought one of my reports. Feel free to forward this newsletter to colleagues you think would be interested. Comments, questions and suggestions are always welcome. Email: scott@icofmaine.com.

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Rolling Conversation On Insurance Consulting - A few weeks ago I got a note from one of my mentor clients about a conversation in an internet insurance forum. An agent was asking about where to turn for info on the world of consulting. After watching the conversation for a day or so, I decided to jump in.

There have been some good questions and some opportunities to set the record straight with some insurance people who seem to misunderstand the place and role of insurance consultants in our industry.

Take a look at - http://www.insurancejournal.com/forums/viewtopic.php?t=733&start=0&sid=9bee8af4688b072e61d1ae417db07697

Its been interesting to watch the conversation unfold. I've heard from many readers of the forum privately - some of you have signed up for my newsletter. Welcome.

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Free Insurance Consultant's Teleseminar - Join me on November 10 at Noon, eastern-time, for a 45 minute teleseminar. Those who signup will determine the topic of discussion - starting out, marketing, proposals, equipement to buy, report writing, prospecting... You decide. Email me with your questions and issues. I'll pick the best and off we'll go.

Here's your opportunity to learn about what might be your next career move. If you are already a consultant join us - I guarantee you'll hear something new.

Admission to the teleseminar is free - you must register though. Email me at scott@icofmaine.com for the call-in phone number and secret code. (Please note, long distance rates do apply.) Register now - space is limited.

Email me your topics and questions. Let me know what you want discusses and we'll add it to the agenda.

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Agent's Reaction To Insurance Consultants - The forum discussion described above leads into the topic of agent's reaction to my work as a consultant.

My relationship with agents is, at times, prickly. Many are not sure what to do with me. I may be the first consultant they have ever dealt with. In many cases we competed for accounts when I was an agent. Perhaps they have had a past bad experience with consultants.

It was more of an issue when I first started my practice. I had yet to build a reputation with agents. My policy of never selling insurance and never accepting fees or commissions from agents has helped me in my relationship with agents. I can tell them without equivocation that I'm not a threat to their business.

Many agents welcome me, especially on tough, complex accounts. Good agents see consultants as another partner in the work to provide the insurance buyer with the best insurance program.

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Recent Projects - Insurance professionals often ask me the type of projects I have. Here's a story of the recent renewal for a client who I've been working with:

Three years ago I was asked to help a medium sized company with locations in many states. The firm had done business with the same broker for 20 years. The insurance buyer had grown increasingly concerned with the broker's abilities. I was brought in to try to reform the situation.

I struggled and struggled to get the agent to be more responsive and more aggressive. The premium, when I started, was $500,000. Through threats and intimidation we corralled the agent (and insurer) to get the premium to $400,000 the year before last. In the last renewal the premium went up again by 5%. I felt strongly that the marketplace for the account was much lower.

At the January 2005 expiration of my contract I refused to offer a renewal. I told my client that as long as he kept the current agent I could not improve the situation. The client agreed to a broker selection process that allowed me to invite agents (including the current agent) to present plans to service the insurance needs of the client. Through that process my client saw how poorly their agent compared.

We changed agents about six months ago. Last week we finished the renewal with a $300,000 premium with much better coverage (fewer exclusions, many bells and whistles). The services offered by the new agent have also helped us a great deal.

My fee seems pretty skimpy compared to $200,000 annual savings!

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Visit My Insurance Blog – My general thoughts about the world of insurance - http://insurancebuzzer.blogspot.com/.

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Recent Press Comments – There was a small mention of me in a piece in Money Magazine this month - http://money.cnn.com/2005/09/27/pf/kids_insurance_0510/.

Investors Business Daily also picked up some information I use when I mentor kids - http://epaper.investors.com/Repository/ml.asp?Ref=SUJELzIwMDUvMDkvMTMjQXIwMDQwMg==&Mode=HTML&Locale=english-skin-custom-ibd.

If you want to see the whole career advice piece go to my blog at http://insurancebuzzer.blogspot.com/2005/09/career-advice-from-old-frt.html

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Insurance Consultant's Handbook - I have been blown away by the response to my handbook. I thought there would be a demand. However... For information go to http://www.icmentor.com/handbook.htm.

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Insurance Consultant Mentor Program - My mentor program is designed to help you build your business faster, with less hassle, and fewer false starts. The object is for you to make your business the best it can be - faster and more profitably. Go to http://www.icmentor.com/mentor.htm for information.

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Scott Simmonds, CPCU, ARM
Insurance Consultants of Maine, Inc.
20 Sofia Road, Saco, ME 04072-9017
Phone 207 284-0085 ~ Fax 801 991-4027
scott@icofmaine.com
http://www.endwimpyinsurance.com

Insurance Consultant Services Website: http://www.icmentor.com

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