Insurance Consultant & Mentor
Scott Simmonds, CPCU, ARM
October, 2006

Helping Insurance Experts Build Great Businesses
www.icmentor.com

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Feel free to forward this newsletter to colleagues. Comments, questions, and suggestions are always welcome. Email: Scott@ScottSimmonds.com or call 207-284-0085.

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Managing The Bid Process

The October 1 renewal season gets busier each year. Or, so it seems. I had a wide variety of renewal projects – from renewing with the current insurer to full “eat your young” bid projects.

I set strict rules for the bid process. I insist my clients enter the project with the commitment to move their insurance should the competing agents perform – I don’t want competing agents being used to pound down the current agent’s price. That said, competing agents know that saving an account 5% does not mean the account becomes theirs. Incumbent agents must also feel that the process was fair. An ethical bid process is vital. Agents must know that when they compete in a bid process administered by me that the field is as level as possible.

I learned a great deal in the recent bid situations. I am considering a change in the way I handle the bid process based on what I have seen this “season.” In the past, I was the sole contact for the agents. Incumbent and competing agent alike were given bid specs and were to run questions and requests for information through me. I saw keeping the client out of the fray as part of my role. My approach was designed to protect my client’s time. It also gave me control of the process. However, I am no longer convinced it’s the best way.

From now on, in most cases, I am going to have the agents deal directly with the insurance buyer for information. I will put together basic schedules of vehicles, loss runs, statement of values, driver lists, and the like. Agents, however, will work with the buyer to gather additional underwriting information. I have grown to see that the client needs to be engaged in the process. Competing agents need a chance to build a relationship with the buyer. Incumbent agents need to be assured that the relationship they have built over years has not been usurped by me, the consultant.

My real value to my client is in my knowledge of the system and knowledge of insurance. Allowing the competing agents access to the insurance buyer allows for a more trusting relationship between agent and buyer. I see this as better for my client and the bidding agents.

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Free Mentor Sessions - I preach value based marketing. Taking a page from my own book, I'd like to try something different. As a reader of my newsletter Id like to offer you a free mentor session. Email me a bit of information about yourself. Tell me about your current insurance job and where you want to go. We'll set up a time to get together on the phone. I'll provide a free mentor session - no obligation. Let's spend some time exploring where you want to go in your insurance career and how I can help you get there.

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Referral Network - I'm building an online listing of insurance consultants. This may grow into a referral network and directory. I need to know who is out there! If you're interested in being a part of a directory, please complete the form at http://insuranceconsultant.org/listform.htm. There is no cost or fee.

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Insurance Consultant Mentor Program - Designed to help you build your business faster, with less hassle, and fewer false starts. Grow your current practice or gain the edge in your startup. 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.

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Insurance Agent Mentor Program - A fair number of my subscribers are insurance agents who have no intention of becoming consultants. Several have talked with me about how my methods can help them. The principles of marketing professional services are universal. I'm glad to talk about how we might be able to work together to build your book of business. Call or email me to discuss.

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Scott Simmonds, CPCU, ARM
Phone 207-284-0085
Scott@ScottSimmonds.com
http://www.ScottSimmonds.com

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

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