Insurance organizations that are local or regional are a part of the largest segment of employers in the American economy. Why should they exist and succeed in a world where bigger is associated with better?
I have found by my experience that their success is based on their ability to provide service that excels through responsiveness, collaboration and innovation that larger organizations are slower or unable to deliver. Consider:
Responsiveness - Local or regional insurance operations are able to (or should) deliver a more personal customer experience. It is easier for those organizations to provide customers’ access to associates with the authority and values that are focused solely on satisfying the customer.
Collaboration - It is easier to achieve "Trusted Adviser" status. The clients experience should be more personal, their access to services more direct and the commitment to provide excellent service more apparent to the customer than can be found in larger, more complex organizations.
Innovation - Should lead the industry with innovative products and services, to compete they need to always be in front of the larger organizations forcing them to respond to innovations at the regional level. Regional and local companies should act, not react.
Local and regional insurance organizations should dominate their market in the areas that they choose to direct their focus. Some observations from experience:
Associates - should always be training for and moving up to positions that have more value to your clients and generate greater revenues to the organization.
- In flat organizations personal growth can only be achieved if skills are developed that produce more value to the organization.
- As associates develop the value gained should be a better customer experience with revenue generating associates freed from tasks that detract from revenue growth.
- With growth in skills and responsibilities associates value should be recognized through compensation and increased accountability.
Revenue generating associates - while most if not all functions should be linked to revenue or profit generation, those who directly generate revenue need to be supported by qualified, dedicated associates that free them to fully focus on the customer or prospective customer.
- Their sole focus should be on serving the customer and drawing new clients to the organization.
- They need to lead in the delivery of high quality service to their clients.
- They must be granted the authority and freedom of action for the benefit of both the customer and the organization.
Minimalism - focus on what you do best and let go of tasks or services that can be better performed elsewhere at less cost.
- Up size and outsource back office process. If associates move up the value scale in your organization work that can be done by others more efficiently and at less cost should be pushed down and eventually out of the organization.
- Technology does not necessarily improve the customers’ experience. Clients want personal contact, they want to know that they are valued by the organization. Clients want to know what you can do for them, not what they can do for themselves.
- Time, the most precious resource of both the organization and the client. Every impediment that takes away time from customer acquisition, retention and service has to be removed.
I firmly believe that organizations can always grow, improve and change to the benefit of their clients, associates and stakeholders. That by a disciplined approach to continuous improvement and market focus any organization can thrive and lead their marketplace regardless of size.
