The Role of the Agent
The Traditional Agency Model
In the traditional agency model, 90 days before renewal the traditional agent begins gathering information to submit to underwriters to get proposals. They spend 25% of their time on direct cost management. The other 75% of their time is spent on reactive services - waiting for the business owner to call with requests or claims.
||The Traditional Agency Model Problem - reactive model that deals with direct cost only (20% of your Total Cost of Risk).
Benefit of Total Cost of Risk Model - reduces your Total Cost of Risk, increases your bottom line profit, and makes you more attractive to the insurance marketplace.
Total Cost of Risk Model (WA Model)
In the Total Cost of Risk Model, 25% of our time is still spent working on the placement of insurance 90 days prior to renewal. However, in this model, we dedicate 50% of our time on proactive strategies. This includes identification, prioritization, clarification and mitigation of the risks and indirect costs associated with your program. We put processes in place to reduce risk and increase profits which make you more attractive to the insurance marketplace. Examples of proactive strategies include injury management, safety programs, wellness programs, HR compliance, etc. The last 25% of time is spent on service. Service for the client is less in this model because the proactives strategies in place have reduced or eliminated half of the reactive service found in the traditional agency model.