RISK MANAGEMENT
DOES THE RIGHT HAND KNOW WHAT
THE LEFT HAND IS DOING?
By: Annette Hollingsworth, J.D., CPCU, CLU, ARC
As technology allows the ability to service large groups of
clients more efficiently, many agencies are increasingly
expanding their reach beyond the confines of one
metropolitan area. To better serve their customer base,
agencies may open additional locations or acquire
existing entities to grow their business. The management
of multiple locations creates new challenges, and those
challenges, if not handled correctly, may lead to increased
opportunities for error.
Controlled growth, whether organic or through acquisition
can increase efficiencies and reduce cost. However, it is
essential to manage that growth. Be sure that the “righthand
knows what the left hand is doing.” Consistent
culture, compliance, and communication throughout the
agency at all locations, is essential to prevent confusion
and potential claims which may otherwise arise from
acquisitions and dispersed locations.
Make sure all staff understands your agency
culture.
Owners, producers, agents, CSR’s and all staff must
understand the focus of the business. If the agency’s
stated focus is on personal lines, then it should not deviate
into intricate specialized lines. If the agency focuses on
specific niches of business, the agency should train their
agents and support staff on how to service those markets.
Often claims begin when the agency attempts to sell
insurance products with which it is unfamiliar. Understand
your focus. If you are acquiring agencies, acquire those
that fit your vision. Then share your vision with all staff at
every agency location regularly. Help your team see what
the agency is trying to accomplish and how each person
can contribute by staying focused on the organization’s
goals.
When the workload is heavy, and clients demand your
attention at your primary agency location, it can be
challenging to give your attention to the other office
locations. But to keep those other locations in line with
your vision, you must provide them with the care they
need. You should try to visit your other agency locations
frequently, at least once a month. Visit each site for a long
enough time that each site does not put on a front for you
but reveals to you its true method of operation. By allowing
each office to become comfortable with your visits, you can
build trust and familiarity. The agents and staff at each
location must feel close enough to the primary agency to
ask questions, share problems, and seek feedback.
Establish uniform office procedures and a
standard system of compliance.
Each municipality has regulations to protect its citizens.
If you locate a branch office or even a teleworker, you
must research licensing and other business regulations
impacting your insurance operation in another state.
Failure to comply with regulatory requirements could lead
to regulatory investigation, disciplinary action, or even your
license’s possible revocation. If adjustments are needed
to be made due to the regulations, do not begin operating
your business until you comply with the law.
For example, an agency had a CSR move to another state
and began working remotely as a clerical assistant to their
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