tedious and time-consuming – like checking policies ! So that ’ s what gets shipped off to the “ virtual associate ” – arguably the most important task performed in any agency . Or it ’ s checking endorsements or processing invoices . Perhaps completing certificates , auto ID cards , and other evidence of insurance . These “ tedious ” tasks can easily be performed by someone with limited knowledge and experience – or can they ? Have you any idea how long it would take even a highly skilled insurance professional to check a complex insurance contract when they do not know anything about the account and don ’ t handle it daily ? It ’ s a tall order , indeed . And don ’ t look now , but when that checked policy is finally returned to the Account Manager , most won ’ t trust that it was done right , so will “ check the checker ” – and out goes any possible time or money to be saved .
What ’ s the better answer ? Go back to that list of Account Manager functions and examine each one . Ask yourself only one question : does this represent a value-added service for the agency ’ s client ? In other words , is it a WOW ? It ’ s something they couldn ’ t get from any other
independent agency , and as long as you keep providing it , they will always stay with you . Or is it something that the agency thinks is valuable but represents a waste of time and money since the client wouldn ’ t even notice if you stopped doing it ? Several things come to mind , but that ’ s another article entirely .
Rather than outsource specific tasks to others , what if every Account Manager did manage their accounts from stem to stern but had smaller books of business ? In other words , when you need more staff , you grow horizontally , not vertically . The relationship with each client grows stronger while productivity and efficiency increase and E & O exposures are reduced . Account Managers are focused on providing risk management advice , not simply processing transactions . The revenue on each account will grow , and retention will improve . Producers will be more confident knowing their accounts are in good hands . Do you think you could get all that from a caveman ?
Cheryl L . Koch , MBA , CPCU , CIC , ARM , AAI , AAM , AIM , ARP , AIS , API , ACSR , AINS , AFIS is an agency management consultant , educator and speaker at a variety of industry events . She is the CEO of Agency Management Resource Group located in Lincoln , CA .
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