Marketing Risk Management – Part 2 [From the Archives]

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July 6th, 2015

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v2-thmbIn case you missed Part 1: Marketing Risk Management

3 Areas Agencies Should Improve Risk Management

Part 2: Marketing

When signing an insurance contract, a policyholder is promised that covered losses will be paid expeditiously as long as premiums are paid.  If exposures are properly addressed and policies properly written, this arrangement works splendidly.  However, losses are relatively uncommon.  More customary relationships between insurer and insured consist of billing questions, minor changes to contact information and replacement ID cards – none of which are explicitly discussed when a policy is designed.  These implicit promises provide the value that creates a successful, mutually beneficial relationship.

When producers sign employment agreements with agencies, they are typically very straightforward: you sell, we pay (and if you leave, you can’t take our clients with you).  The details are very clear, just like the coverages provided and the premiums due in an insurance policy.  Rarely are the implicit promises of marketing support outlined a producer’s contract – it is simply assumed that campaigns will run, exposure will improve, and opportunities will in turn be more frequent and more likely to close.

But on a daily basis I speak with producers who struggle to overcome outdated websites, poor (or no) collateral material and case studies, a reluctant social media strategy, or a lack of investment in overall marketing initiatives.  The agencies marketing premiums are overdue and non-pay cancellations are in the mail.  They will arrive in the form of lost business and lost producers.  Insuring the success of your producers with lead generation is step one, but insuring the success of your agency with a reasonable investment in marketing is a very close second.

Originally Posted on January 3, 2013 by John Scranton