Independent insurance and benefits agencies face pressures from changes brought about by healthcare reform.

September 21, 2011 - St. Louis, MO - Kevin Trokey, President & CEO of Benefits Growth Network, has been selected to speak at the 6th Annual Employee Benefit Adviser Summit. He will present on the pressures benefits and insurance agencies are facing as a result of healthcare reform and what they can do to successfully navigate the transition.

Trokey believes that the current changes facing the industry may look familiar, but are actually quite different than the challenges the industry has seen in the past decades. He will explain the differences, explore the challenges, and offer ideas on how to modify the agency business model in order to compete in a new environment.

“There are unprecedented opportunities for growth in the benefits industry as a result of the healthcare reform changes being forced on agency businesses. However, without a purposeful plan of how to make a successful transition, many brokers and agencies will find themselves victims and casualties of reform,” says Trokey.

In the session, brokers will get an idea of how to create a new vision and strategy for their agency that takes a different marketing approach and value proposition to clients. Through this new model, agencies focus on helping clients build more successful businesses by improving the investment employers make into their staff.

The 6th Annual Employee Benefit Adviser Summit will be held in Dallas, TX September 25 – 27, 2011. The conference is focused on building businesses by providing the basics for broker/adviser staff, as well as advanced marketing and management techniques.

About Benefits Growth Network
Benefits Growth Network, based out of St. Louis, MO, is an international membership-based consulting firm specializing in growth strategies for independently owned employee benefits agencies and brokerages. Through the exclusive Benefits Growth System™, members get individualized planning, coaching, training, use of proprietary systems and access to a network of thriving benefits agencies. For more information about Benefits Growth Network, visit www.benefitsgrowthnetwork.com.

I don’t know about you, but I know about a grand total of 5 people (outside of those in family owned agencies) who had planned for a career in insurance.  It seems that most of us sort of wander into the business by accident.  However, at the same time, it’s amazing about how many stay once here.

Stigma

Yeah, there is the stigma of being an “insurance salesman”, but when you look past the stereotype to the reality of what we do, it really is an amazing way to make a living.  It’s an industry where you can maintain an incredible work/life balance, you are in position to truly make an impact on the business of your clients, and it’s an industry whose financial rewards are unbelievable rich.

Unfortunately, I think in the past few years the industry shine has lost a bit of its luster.  Medical premiums keep going up, we’ve been in a recession that has been harsh on both us and our clients, and healthcare reform brings a whole host of unknowns.

Attracting young talent

I have heard many times that our industry is threatened by its inability to attract young talent.  If we allow ourselves to be defined and limited by our industry stereotype that may be a valid concern.  However, I have seen a very clear recent example of that not having to be the case.

Wendy and I were recently taking a member agency through strategic planning.  The principal of the agency invited her 23 year old, soon to be graduating from college, daughter into the planning session.  Danielle (the daughter) is an energetic, very entrepreneurial-minded individual.  She has already started multiple businesses and is clearly destined to do amazing things in the world of business.  I think she initially asked to participate in the session only because of her sincere interest in business, not because she had any intent of it becoming her career path. 

However, as the strategic plan took shape and the vision of the agency was formed, she realized that what they were planning for wasn’t the stereotypical “insurance agency”, it was clearly a vision of an organization positioning itself to help its clients find higher levels of success in very innovative ways.  She clearly saw that the “insurance agency” stigma didn’t have to be what defined the agency and its relationship with its clients.  Now, I don’t know with any certainty that she will pursue a future at the agency, but she clearly saw how exciting and rewarding a career option it can be.

If our industry can still be that exciting to the Danielles of the world, I know it will continue to be the unbelievable opportunity we have all come to know, even those of us who maybe wandered in by accident.   I think that what Danielle experienced in a fairly intense couple of days is what most of us learn much more gradually over the formative years of our careers.  Fortunately, the stereotype doesn’t have to define who we are or what we do.  When you think about the unique relationship we have with our clients, we are in an almost unparalleled position in terms of the breadth of scope of opportunities we have to make a positive impact on their business. 

In my humble opinion, this remains an unbelievable industry in which to make a living.  I’m not sure as many young people will wander into careers with your agency as they have in the past, but if you help them see that the stereotype “need not apply”, we may, in fact, find a whole new generation who join our ranks intentionally.

What about you?  Do you still believe?  If you were starting over, would you make the same choice?

Photo by rduta.

@kevintrokey

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Broker of the Year. That’s quite a title to achieve. There are thousands of licensed independent benefits agents, and to be selected as THE one that is considered a stand-out takes a pretty different twist on the usual in order to be selected.

This year, Benefits Selling magazine selected Mark Lacher, partner with Lacher & Associates, as their 2011 Benefits Selling Broker of the Year. There has been a lot of excitement generated about this: an on-stage presentation at 7th Annual Benefits Selling Expo in Nashville, TN, press releases, Tweets shared, and a great spread in the Benefits Selling magazine with fun photos of Mark looking quite snappy.

Now, before going any further, I need to let you know that Lacher & Associates is one of our BGN members. So, am I a bit biased? Definitely. But is he deserving of this award aside from my bias? If you believe that businesses need to evolve with the changing needs of clients and the marketplace, then yes, he is.

So what was it that got him to this place of recognition?

Thinking differently. Not being bound by the confines of the business model given to him by the traditions of the broker/agent system. Sure, it’s been a good business model for them for 53 years, but as he and his brother took over the business from their father in 2007, they brought with it a new perspective. That all businesses need help – everyone needs a coach, a mentor, an advisor, a sounding board, someone to listen and help them think through things. Good as we may be individually, thinking alone and solving all of our own issues will just not yield the same results as having some additional trusted ideas and help along the way.

That’s what Lacher is doing for clients.

He knew the benefits industry would be changing, and he knew he had to start doing things differently - and a small tweak here and there isn’t enough to save a business or an industry under attack.

Mark took the leap to radically think about his business and his clients’ businesses from a completely different perspective.

Instead of thinking,

“How can I find more clients or sell more products to make up for lost commissions resulting from healthcare reform?”,

he started asking,

“What challenges are my clients facing? What changes are they experiencing as a result of health care reform? Or the economy?”

The answers are many and varied, and they are the same challenges that Lacher himself was facing in his own business.

He had been seeking help to take his firm to a new level and drew from that same concept to use with his clients. If he needed help navigating through changes, plateaus, and being an innovator and leader, didn’t everyone else? Well, the obvious answer is Yes. And he decided to take what he had and what he knew and build upon it to grow into something that is beginning to look very different from the typical insurance broker.

So yes, Lacher’s vision for what he could do for his clients is worthy of note. But an even bigger lesson to take away from Mark’s story is the focus and speed with which they embraced the changes to their business model.

Instead of thinking about making these changes, or dabbling in a few trials here and there while waiting to see what happens as health care reform unfolds over a span of four years, he jumped in and made it happen now.

Regardless of what happens with exchanges and commissions, Lacher has squarely positioned himself and his firm to be a valuable resource to clients – medical policies & benefits packages aside. His clients turn to him for advice to help better manage the performance of their businesses.

I applaud Mark and the entire Lacher team for their foresight, tenacity, and courage to take a good business and turn it into a great business by thinking and acting differently and becoming a stand-out player in their industry!

@wendykeneipp

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Hi everyone -

Here at BGN we’re in the business of helping others achieve greater levels of success – specifically we focus our energies on employee benefits agencies.  However, what we talk about and teach can certainly be applicable to most other industries.  Welcome!  And we appreciate you all!

We cover a variety of topics as it relates to leadership & management of an insurance agency and development of the sales team & process, part of which is helping clients with strategic HR & benefits.

We bring this up because we’d like to hear from you – our readers.  We’d like to know what you would like to read about, or questions you have about agency management, the future of the agency, dealing with a sales process, struggles with teams or business models.  Whatever is on your mind, gnawing at you, or something for which you’re actively seeking an answer – let us know, and we’ll get to work on it for you!

We want to provide you with compelling information & ideas that brings you back again & again

How would you finish these statements?  Leave your answers in the comments below, This e-mail address is being protected from spambots. You need JavaScript enabled to view it , or pick up the phone and call (314.436.7171).

I want to read about…
I would like to learn about…
I need help with…
I want to understand why…

What would be interesting enough to make you engage in a conversation with us and other readers?   Blogging provides such a rich platform to be able to make connections, learn from one another, and share your own thoughts & ideas rather than just keeping them hidden behind the safety of your own computer.  Put it out there and let us know what’s on your mind – we want to hear it!

The more we all engage in conversations with one another, the richer the pool of information, the more ideas we have to draw from, and the better business people we all become.

So...tell us what's on your mind...

There are countless metrics you can be tracking in regards to your book of business and your efforts to build that book.  Tracking the information and creating reports could become a full-time job in itself.  Unfortunately, most of that information and the subsequent reports never result in anything meaningful.  However, I do feel that you should track anything that allows you to make consequential adjustments to how you work, as long as the tracking and reporting remains manageable.

At a minimum, every producer should know the following statistics.

Current book – Total annualized revenue in your book and how it compares to where you were last year.  I will guess that this is the only critical indicator that every producer reading this will already know.

Why? – Well, as a producer, this is the ultimate scorecard.  It determines how much you get paid, how many resources you deserve, and documents (over time) how consistent and effective you are as a producer.

Retention – Don’t fool yourself with the increase in your book that came from additional revenue resulting from increased premiums.  Measure your retention two ways: first, on the percentage of groups you were able to keep and secondly, as the percentage of revenue retained.

Why? – Just comparing revenue numbers won’t tell the whole story.  Additional revenue from increased premiums may mask issues that need to be addressed.  In other words, you may not focus on the 10 small accounts you lost for reasons that may lead to the loss of larger accounts this coming year.

Once you identify the lost business, be brutally honest with yourself as to why they were lost and learn what you can do to keep it from happening again.

Closing ratio – Measure your close ratio at the point you specifically give the prospect a chance to say yes or no.  If you’re still competing with spreadsheets, measure your close ratio as the percentage of spreadsheets delivered that produce new clients.  If you are competing by bringing an improvement plan, measure your close ratio as the percentage of plans presented that result in new clients.

Why? – New opportunities are too difficult to come by.  Poor close ratios exponentially increase the work you have to do to refill your pipeline.  Have the courage to go back to those lost opportunities and ask for honest feedback as to why you lost.

Conversion ratio – This refers to the percentage of prospects that move from one step of your sales process to the next.  For example, in our process, producers use a 3 step process (Step 1 – Executive Briefing, Step 2 – Organizational Assessment, Step 3 – Improvement Plan delivery).  The conversation ratios are the percentage of prospects that move from Executive briefing to Organizational Assessment and then again the percentage of prospects who move from Organizational Assessment to Improvement Plan delivery.

Why? – Tracking your conversion ratio is the only opportunity you have to learn where the weak spots are in your sales process.  Just like I recommend in the close ratio, have the courage to go back and ask for honest feedback on those opportunities you don’t convert.

Revenue per relationship – This is the total amount of revenue in your book of business divided by the total number of clients in your book.

Why? – This is the single biggest predictor of your ability to continue to grow your book of business.  If your revenue per relationship doesn’t grow year over year, your total book growth will be slowed or even stopped.  You can only effectively service a set number of accounts.  The higher the revenue per relationship, the more money you make.

It is up to each of you as individual producers to self-manage your way to personal success.  And, as the old saying goes, you can’t manage what you don’t measure.  Unfortunately, all the measuring and all the managing in the world won’t mean anything if you aren’t willing to make the behavioral changes necessary to move the numbers.

Photo by Aunt Owwee.

Kevin Trokey

President & Coach, Benefits Growth Network

Kevin Trokey is a coach and an implementer of business strategies. He works with agency leadership, department managers, and producers of benefits agencies to craft strategies and lead them to successful transformations by breaking down the complexity into manageable steps.

He regularly speaks about the role of HR within an organization and working with agencies to help them work with their clients on benefits/HR issues.  An important aspect of this is addressing the changing role of the broker, especially in light of healthcare reform.  At BGN, we focus on the overall management of agencies and tightly integrating the sales system into the operations and culture of the company, so topics along those lines are fair game as well.

See something that peaks your interest?  Contact us to find out if Kevin would be a good fit for your group.

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Sample Speaking Topics

Aligning HR with organizational goals/objectives

As organizations start to emerge from the survival mode into which they have retreated during the recession, they will find the actions taken to survive are quickly becoming obstacles to future growth.  The key to removing these obstacles and putting the organization on a path to meeting goals and objectives will largely depend on HR’s ability to become a strategic driver. We will focus on the “Why” and “How” of the issue.

How to move from a sales process that focuses on the placement of a product to one that focuses on the creation of value for the client

To move beyond a commodity sale and a position of a vendor with clients, sales people have to understand how to position themselves more strategically.  We will discuss the key areas of where decision makers ask questions and look for answers when crafting their own strategies.  From there, we will discuss how brokers can become the answer by identifying the opportunities to more strategically align their solutions.  As a result, brokers move from being expenses to investments and from vendors to trusted advisors.

The new broker role being forced by health reform

The pressures to change their marketing approach and value proposition have never been greater for brokers than what is being felt as a result of healthcare reform.  For those who successfully navigate the transition, the reward will be unprecedented opportunities for growth.  However, without a purposeful plan of how to make that transition, many brokers and agencies will find themselves victims and casualties of reform.  We will discuss what needs to be done to prepare for this new role.

Past Speaking Engagements

• Employee Benefit Adviser Summit
• Extreme Networking, Sitkins International (regular engagements)
• BGNLive!
• GBT, an affiliated group of independent multi-line agencies located throughout the Midwest
• Intersure
• St. Louis Association of Health Underwriters

What Others Are Saying

Rich Hill, UNICO Group, Inc., member of Benefits Growth Network

“During the past 12 – 24 months as I have been involved with NAHU & NAIFA concerning health care reform, I had attended several conferences and heard many presentations that suggested that as a benefits broker we would need to become more consultative in our approach.  In addition, we would need to become less focused on product and service and more holistic in our approach.  While I understood the need to make this change, I was not sure how we were going to accomplish it.  I knew that we would not just be able to say, ‘now we are one’.  In mid August 2010, I attended a meeting at which Kevin Trokey with Benefits Growth Network (BGN) was a presenter.  While his presentation was not a commercial for BGN, after the presentation I felt like I had just heard from an individual who would help us, at UNICO, make the transition we needed to make.”

Jay Tuson, CEO, Megson Fitzpatrick Insurance Services

“Why is it that a topic of interest to you can sometimes fall flat in presentation?  I believe the missing ingredient is usually passion.  The passion to not only learn the subject but the passion invest emotionally in your subject and your audience.  Kevin Trokey has that passion and is able to transfer it to his audience…a rare gift to be shared.”

Brandon White, Insuramax Risk Services

“I had the opportunity to listen to Kevin at a networking event that I recently attended in Denver, CO regarding The Benefits Growth Network and their unique approach. Kevin immediately commanded the audience with his confidence and candor on a topic that is confusing even the best prepared businesses with whom I talk every day. Kevin’s delivery is direct and educational with his focus on corporate vision, culture and accountability being exactly what businesses need in today’s economy. Kevin is a rare advisor who can funnel down a lot of noise into a simple, no-nonsense message of how to win.”

Just browsing, but want to learn more?  Interested in having Kevin speak at your event?  Let's chat.

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