Page 62 - The UnCaptive Agent

WHAT KIND OF AGENCY DO YOU WANT TO START? 35

your cell phone number to all of your clients. While that
may work, it means giving up any life outside of your
business (including sleep). A far more practical way to
do this is by using your insurance carrier’s service centers.
You pay for service centers with a slight reduction
in the commissions you receive. Typical service center
charges are 1.5 to 2 percent of the premium that you
write. If average agency commissions are fifteen percent,
then service center charges average around eleven to
thirteen percent of revenue. In a typical agency, a client
service agent costs twenty-five percent of revenue. With
all taxes and benefits expenses included, it’s clear that
service centers are the lowest-cost option for providing
client service when and where they want it.
There have been several studies done of call volume
timing experienced by insurance company service cen-
ters. These studies show that, on average, twenty-five
percent of all calls to these centers occur after normal
business hours or on weekends and holidays.
There are disadvantages to company service centers.
One is that if you have your client’s coverage placed
with more than one insurance company, it may be con-
fusing to your client to know where to go for help. And
some carriers don’t offer service centers. Independent
multi-company service centers and services like CSR24
have arisen to answer this need. Today, taking care
of your client’s service needs requires either personal
attention of yourself, your staff, or a company service
center twenty-four hours a day.
Service centers also currently provide the primary
means for clients to serve themselves, which they
increasingly want. I remember when pay-at-the-pump
first arrived in gas stations. I found it irritating that
there wasn’t a person to take my money. And yet, I got
used to it. And I recall with amusement the time that