The Asset Protection Model of Relationship Selling is based on knowing the client, forming a trust relationship and providing more than a product and a low price. Those agents who sell nothing but price need go no further in this article – it will not be meaningful to them.
The APM builds a trust relationship that familiarizes the clients with the agency and its representatives (both sales and service). That relationship is built on multiple contacts both before and after the sale. The internal purpose of those contacts is to build and strengthen the relationship between the client and the agency. But “glad-handing” and calls without purpose has never been acceptable to most commercial clients.
One of the bulwarks of the APM is to make sure that the client is properly protected – not only for the line of business for which the client comes to the agency, but also for every asset that client owns for which insurance is a potential form of protection.
The vehicle for this process is the Rotating Asset Analysis.
During the prospecting process, the agency’s RM (Relationship Manager) should extend the conversation with the prospect from the coverage for which the client is interested in the agency’s assistance to ALL forms of coverage needs that client may possess. The conversation should extend to all commercial, personal, life, health and any other forms of insurable assets that client may possess. In this phase of the conversation, the RM is concentrating on the analysis of the exposure for which the prospect has come to the agency but takes note of all other exposures for future reference.
After the sale the client is introduced to the Account Manager/Account Executive who will be the lead representative on the service team for the client. The notes taken by the RM is transferred to the AM/AE who will use them as the core of Relationship Management introducing a different part of the client’s asset exposure each time a (positive) contact is made (several times each year). The AE/AM or the RM (at the AE/AM’s discretion) will analyze one part of the client’s asset exposure at each contact to identify whether the client’s current coverage (if any) is appropriate to protect the client against insurable exposure to that part of his asset base at a fair price. If not, like all part of the APM, the agency representative should identify any weaknesses and offer to either shore them up through the agency or identify to the client those things his current insurer should do to remedy the weakness. As usual in the APM agencies, the client will choose to use the APM agency to remedy his issues over 80% of the time.
The Rotating Asset Analysis is also one method of controlling E&O exposure for the agency. Whenever we identify a weakness in the client’s asset protection program (i.e. uncovered areas or underinsured coverages) we point out what must be done to solve the problem and offer our services should the client desire them. However, while we can recommend, we can’t demand that the insured solve his problems. In those cases that an insured chooses NOT to address the issues we identify, we ask the insured to sign a digital signature indicating that we did point out the weakness and solution and that the client decided not top pursue the solution at this time. He can decline to ever further discuss the issue or he can postpone any determination for a year (causing us to diary to re-contact the client next year with another analysis of that coverage). Either way we protect the agency against liability potential while we point out a weakness that could be resolved either through our assistance or with the client’s other insurance provider.
Whether you use the APM or not, a Rotating Asset Analysis may be a useful tool, both for cross-selling your clients and for protecting your agency. Call Agency Consulting Group, Inc. at 856-779-2430 for more information and to discuss the APM or the Rotating Asset Analysis.