Utilizing Independent Actuarial Resources to Gain a Competitive Advantage

Why is it important to have a strong actuarial resource? Many agents know that they have some clients that need actuarial work, but because they don’t have an actuarial resource they tend to put off addressing that need. In turn, they open the door for another agent to step in with a solution. For example, let’s say your client has grown beyond their guaranteed cost program, and another agent comes in and presents a Large Deductible. Even though this may not be the best solution for the client, they are more likely to leave you when it’s the only other option they are presented with. Defending and protecting your largest and most profitable accounts is more important than ever, and utilizing actuarial resources to have a discussion about alternative financing options allows you to lay the groundwork for your client to choose the right program, as opposed to falling for your competitor’s sales pitch. You need resources to support your communication efforts with your clients that allow you to quantify the risk they’re taking and the potential variability in their losses. If you know there may be a good opportunity to bring in data analytics, don’t avoid the topic, instead, leverage an actuarial resource to be sure there is a good flow of communication and support to your existing clients around this topic.

It’s clear that there is a large opportunity to defend your existing accounts using actuarial resources, but the best defense is a good offense. And, if you’re avoiding the actuarial topic, it may be limiting the growth of your agency. Supporting materials and education for producers who aren’t comfortable talking with CFO’s can be used to have a more consultative discussion. For example, let’s assume an agent is having a discussion with a CFO whose company has just switched to a loss sensitive program, but their current agent hasn’t addressed how it’s going to affect their cash flow and the impact of their collateral requirements. In a reversal of the example above, this agent uses an actuary to estimate the loss that the prospect should expect, and more importantly, how it will be spread out over time. It’s a conversation the CFO has never had with any other agent. Additionally, during the sales process, if you’re talking to a prospect whose current program wasn’t analyzed the way it could and should have been there is a huge opportunity for you to step in with leadership and support. Clients today expect their agents to show analytical capabilities, and independent actuarial resources make analytics deliverable. The accounts you want to target—larger, more profitable accounts—often require actuarial support. What if you had the confidence to target prospects that are at the highest level your agency’s capabilities can address? Build a partnership with an actuary to use as a valuable resource, and you can go after the best accounts.