Howard Candage stresses innovation 

We had the pleasure of catching up with a prominent insurance agency management adviser Howard Candage last month.  He was presenting to Providence Mutual Fire Insurance Company agents at a seminar in Taunton, MA. His subject was Surviving, Buying or Selling. In this blurb, we will share some of Howard’s comments about agency survival.  His major premise:  to survive and thrive today, agents need to innovate. 

Insurance companies are process-focused  

Howard points out that insurance company capital “resides on the risk-bearing side of the insurance business,” and that the risk-bearing side is by nature process-focus. Insurance companies have to generate policies and follow through on promises behind those policies. They do this by building large organizations that are not necessarily customer-focused or consumer-focused, he says. 

In short, insurance companies are akin to “manufacturers and wholesalers.” 

Agents as intermediaries and facilitators 

Insurance agents are local retailers.  Howard asserts “if there is to be innovation in the insurance business then it must come from the customer-focused side of the business which is represented by agents who work directly with insureds.” 

He says there that is a natural dichotomy between the goals of insurers and insureds. He sees independent agents as intermediaries and facilitators who make sure that the needs of customers are properly meshed with the products, coverage benefits, and pricing levels offered by the risk-bearers who want and need to make profits on the capital they invest---the insurance companies. 

The role of the facilitator  

Customers often suffer from what Howard calls “pre-loss apathy” and “post-loss aggression.”  “Pre-loss apathy” can cause a customer to make insurance purchases that are not grounded in good risk management logic, Howard says.When a loss occurs, these same customers may realize the impact of their lack of interest and a poor decision about coverage.  They then exhibit “post-loss aggression”, toward both the insurer and the agent. 

Howard goes on to say,” The role of the agent as facilitator is to awaken the post-loss emotions on a pre-loss basis.”  This is easily accomplished through the sales process if one practices a bit, and develops the proper tools to awaken these emotions. 

He also pointed out that customers think (and have) insurance needs that are “horizontally integrated” across insurance product lines. They are concerned about coverages that give them peace of mind, not about individual products.  Insurers, however, are “vertically integrated” by product line.   

This gives rise to consumer conflicts with the insurance industry, Howard says.  He says the agent as the facilitator and intermediary between insurers and consumers, plays the pivotal role in handling misconceptions and issues. 

Agents as innovators 

In their complex roles as local “retailers” and professional advisers for    customers, AND “manufacturer reps” for multiple insurance companies,  independent agents must, of necessity, think innovatively.  For example, learning to sell value instead of price. 

What successful agents do 

.  Successful agents adopt innovative selling and servicing systems which  include productive uses of customer contact technology.  For example, regular e-mail contacts with clients in a positive way. 

.  Successful agents use innovative approaches in their personal and media communications with clients and the companies they represent.  Agents need  focus sessions with their carriers to highlight client needs, and the needs of  the community. 

.  Successful agents are innovative in devising and applying solutions that bridge the natural dichotomy between the goals of insurers and the insured.   They establish a dialogue with their clients and with their carriers to  improve the relationships required in an environment that has so much inherent conflict. 

.  Successful agents have a plan and execute that plan effectively to avoid being   In a reactionary position constantly. 

.  Successful agents create a vision for their organization which includes their customers, their communities, and their product niches.  

.  Successful agents understand they have a client base that purchases insurance  from them, and a sub set of those clients who experience claims. 

.  Successful agents are proactive in claims and policy delivery processes in order to strengthen relationships with their customers and their carriers. 

Claims handling is a major key to client building 

.  Successful agents add value to the client relationship by understanding the needs of those involved in claims experiences, and making sure clients know how much they care about satisfying those needs. 

.  Successful agents are adept at communicating the positive claims experiences  of clients to their entire client base, new buyers, and prospects. 

.  Successful agents are adept at leveraging claims satisfaction into referrals and  new business opportunities.  They know how important it is to be seen as an active participant in the claims process because they understand that the positive environment for referrals is principally the result of the way their carriers handle claims.      

Like to talk with Howard Candage, CPCU, CIC, CRM  directly about this issue and others?  Contact him at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .