The Preeminent Producer Podcast

Differentiate and Grow in a Hard Market

• The Preeminent Producer • Season 1

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Feeling squeezed by the hardening market? Struggle no more as we unravel how to differentiate yourself and grow amidst chaos, particularly in a hard market. With a consultative sales approach and unique insights, this episode of the Preeminent Producer Podcast, get ready to dive into the non-insurable risks that can differentiate you from competitors who focus solely on premium price. This conversation is set to redefine your approach, emphasizing the importance of addressing non-insurable costs that contribute to the overall cost of risk. So tune in, and let's embark on this journey towards organic growth and true agency success.

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Are you a commercial insurance producer struggling to stand out from the competition? Do you find it challenging to grow your book of business and create a fulfilling career? 

Then welcome to The Preeminent Producer Podcast! Each week, we'll be tackling important topics, sharing proven strategies and insights from successful producers that are in the trenches and have traveled the journey to becoming a Preeminent Producer. 

You'll discover what it really takes to become Preeminent & build your book of business, in a way that isn’t being taught anywhere else. Our hosts are experts in the field and have built thriving businesses by becoming the most trusted adviser to their clients. Welcome to your journey to becoming a Preeminent Producer. 

Let’s dive in!

Ready To Grow Your Book Of Business? 
For More Information go to: 
https://www.thepreeminentproducer.com/

Speaker 1:

If you are experiencing the effects of a hardening market, you're going to want to listen to this episode. In this episode of the Pre-Eminent Producer Podcast, our coaches are having a conversation about how to use a consultative sales approach, how to use differentiation in order to continue to be successful and continue to grow your book of business in a hardening market. You guys are feeling the effects of it. You're slammed with craziness and busyness. You don't want to miss this episode, so let's dive in.

Speaker 2:

Are you a commercial insurance producer struggling to stand out from the competition? Do you find it challenging to grow your book of business and create a fulfilling career? If so, then welcome to the Pre-Eminent Producer Podcast. Each week, we'll be tackling important topics, sharing proven strategies and insights from successful producers that are in the trenches and have traveled the journey to becoming a pre-eminent producer. You'll discover what it really takes to become pre-eminent and build your book of business in a way that isn't being taught anywhere else. Our hosts are experts in the field and have built thriving businesses by becoming the most trusted advisor to their clients. Welcome to your journey to becoming a pre-eminent producer. Let's dive in.

Speaker 3:

You know, rick, one thing that I've been experiencing I talk with a number of agents throughout the country. I'm kind of a regular basis. You know I'm in Southern California. As you know, we're having a hardening market here, especially on the personal line side of things. But I focus on commercial, but definitely commercial too. We're having a hardening market, less markets, rates are going up and whatnot. It occurred to me that the net cost of risk approach is even more important, I think, in a hard market. And just here's what you've been experiencing.

Speaker 4:

Well, very much the same, Matt. I live in Arizona and we are we like to say we are californicated, if I can use that kind of word, because things that happen in California bleed over into Arizona. You are such a huge economy and a huge influence on us that when those kind of things bleed over, this is a very strange market, and especially for a lot of new producers and I knew I mean maybe the last five or 10 years who have never been through a challenging marketplace, and this is definitely a challenging marketplace so the consultative sale becomes very, very important. It's the other thing. Before we even get into that, don't? I know you're really busy, I know, matt, you're really busy.

Speaker 4:

People watching this podcast are probably really busy. Don't get too busy to get better. In other words, there are a lot of things out there that we need to still improve our game, maybe more so now than ever before. I mean, if you're going to be a consultive salesperson and in this marketplace that's what it takes Then you need tools and you need equipment to help people weather this big storm that we're in. What if we could approach somebody whose rates have gone up by 10 or 15 percent, but through tools that we have a tool like Busisher, for example, we can show them how to save money in other areas. So the net cost becomes maybe cost neutral or not the big hit that they thought it could be.

Speaker 3:

Yeah, you know, that's completely right, and when you were talking I was actually thinking of the consultative services and that whole approach, and you mentioned bussisher and the various legal consulting and whatnot. It becomes even more important in this environment. There's some advantages to the hardening market. As a producer, obviously, it can be a little easier to open those doors In a super soft market. When people are looking at 25 or 30% rate decreases and they're so focused on just the premium price they're often more satisfied or not worried about and they'll devote their attention somewhere else. So I find it's a little easier right now to open those doors and then easier, I think, than ever to have that consultative kind of full Okay, one of the what I call one of the amazing discoveries that I made early on is that the insurance industry agency industry as a whole was doing, and probably still is doing, a pretty poor job generally of addressing what we call we've discussed this before non-insurable risks, right.

Speaker 3:

Yet those non-insurable risks and costs can contribute heavily to that net overall cost of risk and if you have tools, like you and I do, to address those, it can put a whole different spin on the entire cost of risk conversation that some brokers are not even having that conversation at all with their clients and prospects. They're focusing merely on the premium price.

Speaker 4:

Yeah, true, I think, more than ever, matt, now's the time to be a zebra in a herd of horses. It really is. I know that's kind of a schmaltzy thing to say, but the point of differentiation now is more important than ever. Couple of other things that are really important is we've talked about this in some of our podcasts before, own your calendar, make sure you are spending your time where you need to spend your time, because we are all really busy these days and, by the way, this is going to sound crazy in this market where rates are going up.

Speaker 4:

Continue to work on your pipeline, a pipeline. Show me your pipeline, I'll show you your career. I'll show you your success. We have to continue to try to build, because we chatted about this earlier we kind of have this false sense that premiums are going up and we are commissioned animals and we're going to make more money, and that's good news. We're working harder, we're working for our clients. We're going to make good money. We're going to make more money because we're getting rated prices, but that's not true agency growth. True agency growth is organic growth. We're adding new clients and those point of differentiations, the consultative sales that we're doing, focusing on the net cost of risk will be one of those things that differentiate us and they're gonna open doors and they're gonna help us obtain new clients.

Speaker 3:

You know a couple of quick comments to that One. What I've generally experienced is when I do a good job of getting into those non-insurable areas that a lot of my competitors just don't even address, they don't even get into it, it does a couple of things Just by asking the right questions. I'd say those initial conversations with insured. It differentiates me right off the bat. You know that that guy's thinking he's not gonna articulate it, but you know he's thinking, gee, this Starchy guy's kind of getting into areas that my current guy never even discussed. And, yeah, he's got some points here.

Speaker 3:

So what I found is that the perfect tool for that maybe the only tool out there really is certainly the most comprehensive tool is the bussisher. You know consulting or that side of the equation. It just walks you right through it. And I guess the point I really wanted to make is it's not insignificant. I mean it's not like, okay, here's my premium quote, but because I'm taking this net cost of risk, look, because of my consulting that's available through the bussisher product, you're gonna save $1,000 more a year. No, I mean you've been talking well into the five figures sometimes when you look at the cost that somebody's had, you know, in the past having to hire their own attorneys and whatnot. So it can be significant, I guess, is my point.

Speaker 4:

Oh, it really can. I think, like you, matt, I've been doing this for a very long time and there are a lot of tools out there for consultive sales. I don't know, and we use some of them, but I don't know that I found one broader than bussisher or has more punch. And again, it's all that point of differentiation. If I can come in and show you things and have a conversation no one else is having with you, everybody else is focusing on product and price and deductibles and those kind of things and we can have a conversation well above that level. That's dealing with the net cost of your overall operation. That's a conversation that nobody else is having with them because they can't. They don't have the horsepower with a tool like bussisher that's gonna allow them to do that. There are other tools to bring some of those into the mix as well, but that's a damn good thing to have in your back pocket, or actually your front pocket, to lead the conversation.

Speaker 3:

Absolutely and, as I mentioned, those can be significant. But let's say it's only on average. I'm gonna really low ball it. Let's say the additional cost savings by going into the consultative, non-insurable net cost of risk approach with bussisher. Let's say that that's only every time. 15%, it's really more. In my experience it's really more. Varies with the risk. But how would you like to? Every time you're going, because you're taking this approach, every time you're going into a presentation knowing that you're at least 15% below. Well, you know what, in the soft market that might not be that big a deal and the kind of rising rate market we're in now that's a pretty big advantage right there.

Speaker 4:

You bet we've had this conversation before where we say, hey, producers out there, they're spending before this market. They're spending more money with you than they are most likely their attorney and their CPA and many times put together that's significant dollars and our whole thing is we're trying to attack areas. It's a conversation that no one else is having with them. I mean, when somebody looks at me during these conversations and we're talking about savings that we can bring to them, like wow, I've never had this kind of conversation and I say then I've done my job because we're like no other insurance broker, because not only are we doing the premiums, the coverage, but we're doing net cost of risk and, in some cases, net cost of your operation. Then if we could save you outside the insurance arena $50,000 on money you're already spending, wouldn't that be important to you? I mean, maybe your organization is such that 50 grand isn't a big deal. I know in mind it is and we would love to try. We love having those conversations.

Speaker 1:

All right, I hope you got a lot out of that. I hope you were encouraged. If you are feeling the effects and just the pressure of a hardening market, I hope you also caught what Rick Gregson said about don't let yourself be too busy to get better. I thought that was great and that really is what we are all about on our journey to preeminence and becoming a preeminent producer. So if you'd like more information about how you could actually work with our coaches and get coaching from them, visit us at thepreeminentproducercom and find out more about how you can continue to thrive in a hardening market. Until next time, guys, we'll see you in the next episode of the Preeminent Producer Podcast.

Speaker 2:

Thanks so much for joining us on this episode of the Preeminent Producer Podcast. If you're enjoying the show, please feel free to subscribe, rate and leave a review wherever you listen to your podcasts. That helps others find the show and we greatly appreciate it. Once again, thanks for joining us and we'll catch you in the next episode of the Preeminent Producer Podcast.