Featured Speaker Vincent Hager, CIRMS President. JGS Insurance. Holmdel, NJ

Transcription

1 REAL LIFE Managing Producers Featured Speaker Vincent Hager, CIRMS President JGS Insurance Holmdel, NJ

2 John Wepler Chairman & CEO Marsh, Berry & Company, Inc. Acknowledged Expert on what matters to Agents Personally advised on over 170 M&A transactions* Also CEO of MarshBerry Capital, Inc., a whollyowned subsidiary. He is a FINRA registered Broker/Dealer *Securities offered through MarshBerry Capital Inc. Member FINRA & SIPC, and an affiliate of Marsh Berry & Company, Inc.

3 Allowing External Factors to Control Your Sustainability Should Be 20% To get to 13%+ * Source: MarshBerry proprietary financial management system Perspectives for High Performance ( PHP ). Only includes agencies from U.S. and Canada. It excludes agencies from Puerto Rico, U.S. Virgin Islands, and Peru. Past performance is not necessarily indicative of future results. *Preliminary Trailing Twelve Months ending Marsh, Berry & Co., Inc. No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Co., Inc. Securities offered through MarshBerry Capital, Inc., Member FINRA Member SIPC and an affiliate of Marsh, Berry & Company, Inc Chagrin Blvd., Suite 400, Woodmere, Ohio

4 Historical Organic Growth Rate * Source: MarshBerry proprietary financial management system Perspectives for High Performance ( PHP ). Average is the average of all agencies in the database, while Best 25% is the best 25% of the average performance. Only includes agencies from U.S. and Canada. It excludes agencies from Puerto Rico, U.S. Virgin Islands, and Peru. Public brokers (MMC, AON, AJG, Brown & Brown, and Willis Towers Watson) information were from SNL Financial as of 12/31/2016. *Preliminary Trailing Twelve Months ending 12/31/2016 Preliminary Findings; Past performance is not necessarily indicative of future Marsh, Berry & Co., Inc. No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Co., Inc. Securities offered through MarshBerry Capital, Inc., Member FINRA Member SIPC and an affiliate of Marsh, Berry & Company, Inc Chagrin Blvd., Suite 400, Woodmere, Ohio

5 Organic Growth Metrics Percentile Rankings Percentile Ranking Total Comm. & Fees Organic Growth Rate New Business as % PY Comm. & Fees Leakage: Rate, Retention, Compression % 18.6% 21.8% -2.2% 60 80% 6.9% 14.8% 5.0% 40 60% 3.9% 12.0% 8.6% 20 40% 1.2% 9.8% 12.4% 0 20% -5.0% 5.8% 18.2% New Business Leakage Organic Growth Soft Mkt. 21.8% 15.8% 6.0% Source: MarshBerry proprietary financial management system Perspectives for High Performance ( PHP ). Data was derived from the most recent data submitted in the MarshBerry PHP system by agencies. Average is the average of all agencies in the PHP database and only includes agencies from U.S. and Canada. It excludes agencies from Puerto Rico, U.S. Virgin Islands, and Peru. Indicators were ranked individually. Thus, numbers may not add up. Past performance is not necessarily indicative of future results. PY: Prior Marsh, Berry & Co., Inc. No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Co., Inc. Securities offered through MarshBerry Capital, Inc., Member FINRA Member SIPC and an affiliate of Marsh, Berry & Company, Inc Chagrin Blvd., Suite 400, Woodmere, Ohio

6 What We See: Average Broker Source: MarshBerry Opinion and Experience A/E: Account Executive Marsh, Berry & Co., Inc. No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Co., Inc. Securities offered through MarshBerry Capital, Inc., Member FINRA Member SIPC and an affiliate of Marsh, Berry & Company, Inc Chagrin Blvd., Suite 400, Woodmere, Ohio

7 Stack Rank New Business by Producer Million $ Producers: Executive Producers: Senior Producers: New Producer: Producers with greater than $1Million book of business Greater than 3 years experience and over $500,000 book of business Greater than 3 years experience and less than a $500,000 book of business Less than three years experience Percentile Group All Producers Million $ Producers Executive Producers Senior Producers New Producers 80% to 100% $178,820 $280,495 $166,323 $96,227 $117,348 60% to 80% $83,246 $191,457 $86,676 $69,234 $66,021 40% to 60% $60,287 $136,345 $58,831 $51,930 $44,760 20% to 40% $40,264 $89,466 $44,308 $30,806 $23,144 0% to 20% $13,730 $50,395 $22,958 $9,861 $3,232 Past performance is not indicative of future results Source: MarshBerry Sales Management Best Practices and Benchmarking Report, February 16, Marsh, Berry & Co., Inc. No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Co., Inc. Securities offered through MarshBerry Capital, Inc., Member FINRA Member SIPC and an affiliate of Marsh, Berry & Company, Inc Chagrin Blvd., Suite 400, Woodmere, Ohio

8 The Pareto Principle (also known as the 80/20 rule) 80% of your revenue comes from 20% of your customers

9 Implement Small Business Unit (SBU) SBU Units can be most profitable line of business Losing Small Account small impact vs Top 20 SBU s traditionally drive higher retention metrics Service and Focus Improves Servicing model more automated, consistent and profitable Dedicated Staff to SBU New & Renewal Service Centers

10 Establish Producer Minimum Account Thresholds The primary purpose - protect a producer from flat lining in book growth. Maximum capacity before new business and book growth plateau. (Farmers). Necessary to trade down accounts for balancing work/life with continued increased comp and growth. Frees up capacity for the producer sell more spend less time servicing accounts with little revenue.

11 A Failure to Plan is a Plan to Fail Benjamin Franklin

12 Establish Producer Minimum Account Thresholds Average Account Size Agency Producer Establish Minimum Account Size Revenue Based ($1,000, $2,500, $5,000) One time referral fee into SBU Reduced Commission

13 Annual Producer Book Analysis Annual Book of Business sorted by Account Total Revenue Sort by Top 20%, Bottom 20% and Middle 60% Determine Average Account Revenue Size Per Producer

14 Mr. Producer Producer Goal Setting & Action Planning

15 Mr. Producer Producer Goal Setting & Action Planning

16 Mr. Producer Producer Goal Setting & Action Planning

17 Mr. Producer Producer Goal Setting & Action Planning

18 Mr. Producer Producer Goal Setting & Action Planning

19 Mr. Producer Producer Goal Setting & Action Planning

20 Mr. Producer Producer Goal Setting & Action Planning

21 Mr. Producer Producer Goal Setting & Action Planning

22 Producer Accountability Carrot & Stick Reward Desired Behavior/Outcomes Higher NB Revenue Accounts = Higher Commissions 10k Rev = 40%, 25k Rev = 50% Set Minimum Annual Revenue Production Goals Minimum New Business Goal = $75,000 (50,60) Failure to meet goal, commission reduced by 2% on renewals the following year.

23 Producer Accountability Pipeline Management AMS Tracking, Salesforce, Lexus Nexus, Spreadsheet Track Stages of Prospecting (Suspecting not necessary) Keep track of key metrics: Appointments Set Appointments to Market Market to Close Review Pipeline at Regularly Scheduled Sales Meeting

24 Producer Accountability Post Results to Leaderboard Public All Activity Must be Input into Tracking System No Activity, not discussed at meetings Not Paid if not tracked through system Reward Wins! Bell Trophy/Symbol for Production Leader each month

25 Thank You. Questions?