Three Step Market Intelligence for Agents

This series excerpt was prepared by GeoLogix SolutionsaEUR(TM) Jim Hearn and originally ran as the featured Marketing article in the September 2010 issue of Rough Notes magazine.

Installment #1 Insurance marketing is a discipline thataEUR(TM)s difficult for many individuals or organizations to master. Most agents and brokers focused on the small commercial market either rely on direction from their carrier(s) or the agency will treat their entire geographical service area as a single monolithic marketspace. They will pick out some SICs that they would like to write, name the employee size for the prospects and order some aEURoeleadsaEUR?.

The problem? This method is not very targeted and, therefore, not very efficient! Fortunately, a more effective solution is not overly complex or difficult to implement. The broad brush key to more productive and successful marketing is to match the produceraEUR(TM)s or agencyaEUR(TM)s localized territory opportunity with their carrier(s) marketing appetite and / or underwriting criteria.

Step One aEUR" Understanding a TerritoryaEUR(TM)s Production Opportunity: Not all geographical areas have the same production opportunity. Some areas will have a richer, more robust selection of specific SIC classes than others. It is critical to understand if the targeted geographical market can support the desired premium production with a specific selection of SICs.

Therefore, the first step is to understand and embrace the importance of matching the general territory production opportunity to your market(s) marketing appetite and underwriting criteria using one of two methods.

A. The more common method widely employed is to use a geographical orientation. The process is begun by identifying a limited geographical area (ZIP or county) and then identifying which classes / size of business offer the best targeted focus based on numbers of prospects and the general growth of these classes or businesses. Once this is established, you then selectively match this territory potential to a specific carrieraEUR(TM)s marketing appetite and underwriting criteria to support the highest possible submission-to-hit ratio and efficiency with that market.

B. The second method, appetite orientation, begins by identifying the desired marketing appetite and underwriting criteria of your market(s) and then work with a vendor that can assist in identifying the best territory opportunity to support the desired SIC classes / employee size of business within your service trading areaaEUR(TM)s geography.

Too often, this all important step is not properly executed and the result is lost opportunity and poor submission-to-hit ratios. The goal is to target and submit business that is most likely to be written. By aligning the production opportunity surrounding your agency with your marketsaEUR(TM) appetites, both your agency and your markets will enjoy a more solid, and productive, relationship.

For a real world example of how marketing appetite or underwriting criteria can impact the available production opportunity, assessed rates or coverages that might be restricted -- or required -- during prospect selection, please refer to page 52 of the January 2011 issue of Rough Notes magazine or click here for electronic access detail or copy and then insert this URL into a new browser window if it does not automatically open: http://www.roughnotes.com/rnmagazine/2011/january2011/2011_01p052.htm

GeoLogix Solutions provided the data that powered a feature story articulating the environmental exposure facing small businesses across the US. As captured by the author:

The GeoLogix data certainly should give insurers and agents pause concerning what type of coverage needs to be included for these small businesses, as well as better determination of the potential loss costs.

Suggested Action Outline for Step One: 1. Develop a superior market intelligence program that will drive identification of new, profitable opportunities 2. Plan to coordinate your target-market activity by using a cross-section of market intelligence, marketing appetite and underwriting criteria. The key is to screen the prospect list through rules-based application of exclusions based on your marketsaEUR(TM) requirements. 3. Set up the infrastructure to use more than a single source of data to develop a broad understanding of the opportunity in your service area, and to improve the quality of data collected. a. Integrate all available information derived from market information vendors and internal CRM systems for easy access by your producer force. b. Develop links between prospect database, contact management systems, and existing policyholders to eliminate redundancy and eliminate lead distribution of policyholders.

Next in the Series:

Step Two aEUR" A three step Process: 1. Profile the produceraEUR(TM)s / agencyaEUR(TM)s current book and develop Best Clients / Best Prospect profiles 2. Secure a Top 50 or Top 100 Market Opportunity Report 3. Using your new market intelligence, meet with your markets to set realistic goals

3-Step Market Intelligence for Agents

This series excerpt was prepared by GeoLogix SolutionsaEUR(TM) Jim Hearn and originally ran as the featured Marketing article in the September 2010 issue of Rough Notes magazine.

Jim Hearn, GeoLogix SolutionsaEUR(TM) CEO, has worked in the information and insurance industries since 1981 holding regional and national executive leadership positions. Since 1990, Jim has been focused on the insurance industry and has managed contractual relationships with all of the major brokers, many of the Top 100 agencies, numerous agency aggregators and over 400 carriers and reinsurers. Jim and the rest of the GeoLogix Solutions team have 70+ combined years in the information and insurance industries.

JimaEUR(TM)s disciplines included sales, marketing, technology and eCommerce with industry leading firms. Before launching GeoLogix Solutions, companies for whom Jim has worked include D&B, Continental Insurance, AMS Services, Citigroup, MarketStance, Advisen and Moore Stephens Business Solutions.

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