Building the Pipeline


Programs managers live and breath distribution. Typically focused on independent agents, the channels are expanding.


We like going through independent agents. We set up advisory groups for each individual program.


Geoffrey McKernan, NSM Insurance Group


Many program administrators distribute their product principally through independent agents; nearly all employ a heavy dose of direct mail, email and call centers. Rather than saturate retail producers with program information before the program has shown its strength, some administrators recommend beginning with what is known as “push/pull” marketing. A benefi t of working through agents is that they’re also sources of business intelligence and market feedback. “We solicit those agents and from those agents we get most of our business,” Geoffrey McKernan said. “But we also get our input and we get our buy-in from our carriers and from those agents on how to change the program.”


McKernan supports individual programs with ongoing advisory groups which include up to a dozen key agents who provide feedback and recommendations on programs and products. The advisory groups offer advice on features and strategy.


Some program administrators offer ‘open brokerage,’ which is an all-comers approach to selling through agents and brokers. “It really has to be centered around—I would not even say the “niche” you’re in—the crevice you’re going after in the business,” Augustyn said. “You build it backwards from that.”


Glenn Clark describes “push/pull” marketing as marketing to the end user, then letting them determine how they wish to be served. Typically the marketing message offers an option of responding


via their preferred insurance professional. “So you’re ‘pushing’ an end buyer to ‘pull’ an application to themself the way they want to respond. It could their brother-in-law, Louie; it could be Marsh,” Clark said. “But it is more effective than coming up with a program and saying, ‘Here, Mr. Agent, go and try to sell to that golf course.’”


Copyright © 2010 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


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