The Best Job In The Insurance World
By Scott Simmonds, CPCU, ARM, CMCI have the best job in the insurance industry. Here's my story...
After working as an insurance agent for twenty years I knew there had to be a better way. I'd been a successful producer - worked in a variety of agencies in a few different states. I made a good living and had a nice income. I wasn't happy though.
I looked around the industry and found that most insurance people have gripes.
Insurance agents complain about:- Tough competition
- Lack of markets
- Apathetic underwriters
- Demanding customers
- Declining commissions
- Poorly trained support staff
- Long hours
- Lousy insurer service
- Mergers
- Market swings
- Difficult agents
- Increasing workload
- Poor support
- Demanding schedules
- Downsizing and restructuring
- Increased completion
- Unrealistic expectations
- Management shakeups
The direct writers didn't seem to offer me anything that was better than what I had. Insurance companies seemed too big and bureaucratic.
There had to be a better way. I loved the insurance world and enjoyed dealing with clients - well, the good ones! I liked helping people understand the insurance they bought. I liked solving problems. I liked being an advisor people trusted.
I wanted a business where I could use my insurance expertise and experience - CIC and CPCU, as well as years of work and study. I wanted to provide great value. I wanted to be my own boss and to make as much money as my abilities and efforts allowed. Also, I didn't want to share the pie!
After a great deal of research, I started my own insurance consulting firm.
Here's what I have ten years later. I make a great income. I set my own hours. My clients seek me out and appreciate my work. I don't worry about markets, underwriters, premium increases, or commission cutbacks. I work from my home in a beautiful, comfortable office. My clients see me as an advisor - not a salesman. I provide my clients with valuable insight and information. I am truly the master of my destiny and the keeper of my fate.
I built my practice by trial and error. Oh, I called a few insurance consultants and talked with them. Most were kind and tried to be helpful. I made plenty of mistakes in the first few years. I spent money I didn't have to and spent time doing things I shouldn't have. I discovered by experience what works and what doesn't.
I know that consulting is not for everyone. However, I know that there are some who, like me, want freedom, independence, and control of their own destiny while helping their clients with insurance problems.
Perhaps that describes you.
Welcome to a dramatically different world of insurance. Consulting and a fee-based compensation systems will change the way your clients look at you - more respect and greater trust.
Insurance Consultant - Fee compensated insurance advisor acting as a corporate risk manager for insurance buyers. The work includes exposure review, coverage analysis, broker selection, claim assistance, bid management, and risk management.
The current insurance marketplace can provide great opportunity. The insurance-buying public wants high quality information and advice. Many buyers see sales and commissions as a conflict – more premiums yield higher commissions. Fee-based consulting offers clients a choice.
Here are some issues for the insurance expert considering a career move to the world of independent insurance consulting:
Are you a self-starter?
Being an entrepreneur requires self-motivation and dedication. Nobody will be looking over your shoulder making sure you are doing what you need to do to succeed. Nobody will force you to prioritize or set strategies. It’s all up to you. Can you be self-disciplined?
Do you have financial resources to fund a startup?
While the cost of entry is low compared to many businesses, you’ll still have to buy a computer, office equipment, reference materials, and supplies. You’ll have phone and Internet bills. You’ll have marketing expenses like web-site design, brochures, and the like.
The first year you’ll be spending time building relationships, prospecting, marketing, speaking, and writing. Clients may come slowly at first. Can you find part-time income or live on savings? Can your spouse support the family? Can you purchase health insurance through your spouse’s employer?
Can you dedicate yourself to marketing yourself?
Being a consultant means you are in the marketing business. At the beginning, you will spend most of your time marketing. As your practice grows you’ll need to constantly work to build your pipeline of future work. Writing and speaking to groups is also a part of marketing a consulting practice. Even as a seasoned consultant you will spend more than 20% of your time marketing.
Can you track multiple projects without missing details?
Consultants must have many balls in the air at once - client projects, marketing activities, and business management functions. You must be organized and know how to prioritize roles and activities. Most consultants have no staff. If it’s going to get done, you must do it. Can you communicate ideas in person and on the phone?
Verbal communication is vital to a consulting practice. Can you explain ideas, concepts, and coverage to those who know little about insurance? Can you deal with fellow professionals, negotiate, and persuade? Are you able to speak in front of a group in a seminar or board meeting?
Do you enjoy writing?
Much of today’s communication is by email. Proposals and reports are a big part of the work of an insurance consultant. How is your grammar and knowledge of the language? Do you enjoy putting ideas on paper? Writing articles and white papers is one of the best ways to increase your exposure to the outside world. Can you type? Are you skilled at using word processing software?
Do you have a network of contacts you can draw on?
Marketing is telling your story to people who will get value from your work. Prospects must hear of your work and availability. This is best done by word of mouth. Building a network is important. Having a network already in place will make the work much easier.
Are you a student of insurance?
It’s obvious that insurance consultants must be insurance experts. You must be conversant with the wide variety of coverage issues and exposures. You must research new policies and be able to interpret complex coverage issues. Most states require that you obtain a license as an insurance consultant. You may need to pass a test. You may have to obtain continuing education to meet license requirements. CPCU, ARM, and/or CIC designations are invaluable both in the knowledge gained and in credibility to clients.
Does your non-compete agreement constrain you?
If you have a non-compete with your current (former) employer, will it prevent you from soliciting past clients? Some specifically forbid selling insurance. Some are broad enough to include all insurance work. Will your employer negotiate the requirement away?
Interested?
I can help you with a personalized program to help you move you forward in a career as an insurance consultant.
Your insurance consulting practice will move forward quicker, with more profit. I will teach you the techniques that have helped me build a successful practice. You will hit the ground running – bringing in bigger clients faster.
The program is straightforward – I provide you with unlimited phone, fax, and email assistance on any topic relative to your insurance consulting practice.
I return all phone calls in 90 minutes and all emails within one business day.
I’ll review documents, proposals, white papers, and articles and give you my opinion. I can help you set your fees, design proposals, and build reports. We can brainstorm your approach for a particular client. I can help with your business plan and marketing efforts. In short, I’m available to help you when you need help.
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