22 Aug Producers – How Would You Grade?
In my 35+ years of involvement with Agents E&O, there is one area that continues to frustrate me somewhat (actually, it frustrates me a lot). As many of the great agency staff I have interacted with know, I have always felt producer staff (including those internal “sales” staff) must comply strongly with the various E&O Best Practices. When one looks at E&O claims, it is common to see a producer involvement of some sort. So, in our efforts to reduce E&O claims activity, a fair amount of time is dedicated to assessing that level of E&O compliance. When I question staff and management on the level of compliance among the producers, more often than not, the response is, “some are better than others.” I am baffled as to why this is the case and, quite honestly, why a lack of compliance with some producers is tolerated. This is “my frustration issue.”
In my prior corporate career, we were subject to 360 feedback where we would evaluate ourselves and be evaluated by our boss(es) and those staff we had responsibilities for managing and leading. So with that in mind, here are some key issues for a producer evaluation. Assuming a value of “1-10” for each category (100 max total), how would each producer score? I am hoping that this will help to identify those E&O-committed producers and for those that fall below 70, hopefully, this will help to identify areas to work on. This is meant as an exercise to strengthen your E&O culture.
- You are familiar with the legal liability standard of care applicable to insurance agencies.
- You know how important your role is in building a strong E&O culture within your firm.
- You have strong product knowledge of the coverages you deal with.
- You are extremely aware of the importance of the exposure analysis process and are actively engaged to know the client’s exposures, especially on new business.
- Client questions / Application development – you are honest in your dealings with your carriers and clients and ensure they are provided with accurate information.
- You understand the importance of solid and timely documentation of client and carrier discussions.
- You are committed to the team members you deal with and keep them informed on client discussions.
- When dealing with the E&S market, you understand that just because you requested coverage for an exposure does not mean the market quoted all of those coverages.
- You realize that disclaimers in a proposal have a distinct purpose and should never be deleted.
- When moving coverage at renewal time, you work with your team to identify any reductions in coverage with the replacement carrier.
Developing a strong E&O culture is done “one person at a time.” It is hoped that by this exercise, producers will better understand the importance they play in building a strong E&O culture and are committed to achieving that growth.