Frustrated – that’s the word that business owners have been telling me over the past two years that the insurance broker they used for years sold out and now the service absolutely sucks.
In this video and post, I’m going to explain why this is happening, and what you can do about it if you’re feeling this way.
Okay, are you one of those business owners that enjoyed a long-term trusted relationship with their insurance broker – and then they sold out and you feel like the new owner doesn’t really care about your relationship?
If you are, you’re not alone.
Big firms are gobbling up insurance agencies large and small across the United States like crazy.
These big buyers often consolidate the purchasing agencies to reduce overhead and increase profits. There’s nothing wrong with it, but what I often hear is that client relationships are taking a beating.
The client who previously dealt with the agency owner or a high-level account manager is now dealing with a junior associate who really doesn’t understand the client’s business risks or they don’t really understand business insurance!
Or worse, the service relationship has been “off-shored” meaning that client requests for certificates or other issues are handled by a call center in a lower operational cost country, and there’s no relationship or expertise.
Very frustrating for most business owners. So, what do you do?
You could contact the owner of the firm that purchased your insurance agent’s business, but in many cases finding that decision maker is going to be difficult.
These buyers are pretty opaque online.
Or you can change brokers and find a broker that’s the right fit for you and your business.
You should realize that your account would be welcomed by many agents and valued by many agents out there.
So business owners, how do you do that?
Well, you could ask your other advisors like CPA, banker, or attorney, and you could also ask your peers in the industry who they use and if they’re happy.
I’d also recommend looking online for options. It’s going to take a little time and research, but it’s not impossible.
My suggestion is to start searching for insurance agencies that specialize in what you do.
For example, if you’re a manufacturing firm, you’ll look online for insurance agents that target or feature manufacturing accounts.
If you need special services like risk control services you’ll want to make sure that prospective agencies offer that.
In fact, I would recommend making a wish list of the things you want from a new insurance relationship, then looking online for firms that fit your needs.
Keep in mind that for the most part, they don’t need to be local, unless you specifically want that in a broker. I’d also look at the prospective agency’s Google reviews and testimonials.
When you’ve got a shortlist – make calls to these candidates and talk about what’s going on, and what you’re looking for – go over your wish list and ask probing questions, like –
Do you have a knowledgeable support team?
How can you help me reduce risk and costs?
Do you have other clients like me in your book of business?
Do you or your team have professional designations that support your knowledge of insurance? and so forth.
You’ll also want to disclose the premiums you’re paying so that it’s clear to the brokers you’re interviewing what they can expect in compensation.
The truth is that some accounts are too small for some brokers to engage on and some are too large for other brokers to engage on.
Here’s the bottom line for business owners.
You don’t need to put up with sucky service.
When relationships change, your expectations don’t need to go down to fit the new firm’s service standards.
You have choices and options.
It may take some effort to find that ideal relationship, but it will be worth it in the long run and save you the hassle and frustration you’re feeling now.
I hope you’ll consider contacting me for a conversation as well.
I’ll be transparent on the types of firms we work with and if I think we’d be a good fit for your business or not.
Thanks. I hope this was helpful and I look forward to speaking with you!
