Things You Pick Up after 20 Years as an Independent Insurance Agent
July 9, 2024, by Brad Davis, CIC
It is hard to believe that I have been licensed and active in the insurance industry for 20 years. Primarily focused on Personal Lines Insurance (home, auto, flood, boat, etc.) in the Myrtle Beach area. I would like to think I have picked up a few things along the way and have a pretty good handle on the industry.
What have I learned from two decades of being active in insurance. (I hope this does not come across as braggadocious.)
Getting an insurance producer license and reading product guides is a good start. But I feel you don’t get deep product knowledge until you have read countless insurance policies, talked to hundreds of underwriters and company representatives, seen many many claims come through, and just live in the trenches for a while. It may seem like there are only a handful of products, but every insurance company is different and most provide multiple products – making it more like hundreds of products to learn.
- Knowing I Don’t Know Everything
I still learn new things about insurance on a weekly basis. I have seen lots of insurance agents go through a “cocky” phase between years 2 – 4, when they think they know it all. It is impossible and knowing that you will never know it all is super important.
- The Art of Risk Assessment
Assessing risk is at the heart of what we do as insurance professionals. I would not go as far as saying I have mastered it, but through experience, I have developed a keen eye for evaluating risk factors and anticipating potential claims scenarios.
Really, it’s about picking up on red flags. You may find it hard to believe (sarcasm), but people are not always honest. Especially if they think giving information will increase their insurance premium.
- Building Strong Company Relationships
The insurance industry is a small world, so you don’t want to burn any bridges. It has served me well to keep in touch with people over the years and do what I can to keep a good reputation. A good relationship with company partners can sometimes make or break an agency.
The other side of the coin is – Almost all insurance companies preach the value of agency partnerships, but sometimes it is just words. While most insurance companies are great partners, some are not. I have seen companies drop agents and/or policies right after saying ‘we are here for you’ or something like that.
- Knowing when You Might Not be the Best Fit
Early in a career, most agents try to write every single policy they can. I did. Sometimes it is better to let a potential client get insurance from another provider.
- Understanding the Intricacies of the Insurance Industry
This is hard to quantify or put down on paper. I honestly feel like I know things and I don’t remember how I learned it.
There is so much going on behind the scenes that helps me to understand why insurance is the way it is. Having a general grasp on state regulatory laws, how insurance is tied to the financial industry, why insurance companies CEOs make certain decisions, and so on helps me to educate our staff and relay helpful information to our clients.
It would be hard to see a week go by without having to solve some type of issue. Sometimes we make mistakes, and sometimes we have to take the blame for and fix mistakes that were not our fault. I really feel like years of resolving client issues has helped to sharpen my problem-solving skills.
- Gaining a General Understanding of how Businesses Work
This comes from years as an insurance agent, but also from operating a small business myself.
Our office does not write tons of business or commercial insurance, but I have written my share over 20 years. To underwrite a business, you need to ask questions and know what questions to ask. That means either knowing a little about their business or taking some time to research it.
Running a small business has helped me to understand what a business owner deals with daily. From hiring staff, to ordering supplies, marketing, and the other thousand things small business owners do.
- You Don’t Write a Policy and just Collect Money Every Year
There is a misconception that insurance agents work hard for a few years and then just live on renewals. There could be a book written about this. I will just say if you don’t service your clients well, you will get eaten by the agencies that do.
- The Insurance Industry will Continue to Change
This may be debatable, but the way I see it the insurance market has gone through two hard markets (still in the second) in my 20 years. There is a lot to talk about there, but what I will point out is that these cycles bring change. Change to regulation, change to technology, change to underwriting guidelines, change to corporate structure, and more. As others have said – the only thing that remains the same is change itself.
Conclusion
After writing this much so far, I feel 20 years in the insurance industry is probably similar to 20 years in most industries. You learn by reading, doing, and experiencing things. For example - you can read about it, but until you go through several insurance insolvencies (like we did in the last 3 years) you just don’t know what it is like. Again, it is hard to put on paper, but it is the little things you pick up along the way.
Care to see what we can do for your Home, Auto, or Flood Insurance in Myrtle Beach? Please visit ThinkDavisInsurance.com or call (843)213-0000.
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