Are You Selling Safety? Anyone Buying? November 2009

If You’re Not Out Selling Loss Control,

You’re Being Outsold

INTERSURE ANNUAL MEETINGNOVEMBER 8 – 11, 2010

1(c) 2010 Envision Strategic Group, LLC.

All rights reserved.

Fay Feeney, CSP, ARMPrincipal

Envision Strategic Group, LLC

Advising Executives on Improving Business Performance by Focusing on

Opportunities & Risks



This session is for you if your firm is ready to sell safety services and create a “value –add” for clients:

Safety, Health & Environmental management is integrated into culture and brand. Accountable leadership for performance.

Considers safety performance a risk transfer event. Production before all else. Safety is supposed to happen by itself.



Safety Management Performance: It’s All Good

1. Prepares your agency and clients for a hard market.

2. Attracts and retain clients who understand that safety is integral to improving business performance. Losses = waste

3. Build your book of business to gain the most competitive pricing and underwriting interest from carriers.

4. Tell me more….



2010 Business InfluencesDemands for Safety, Health & Environmental Expertise

Business values = your reputation in a transparent world. Everyone know what you value without saying it.

Supply Chain Expectations Going Green: Wal-Mart, Dell, etc. Corporate Social Responsibility reporting

Business Risks – Perceived Safety Failures BP, Massey Mining

Labor: Aging/Young/Global Workforce

High Hazard Work Environments Construction



@NACD 2010 #NACD Public Company Governance Survey: nearly 70% of directors claim they have not defined the company’s “#risk appetite” statement



Addis Intellectual Capital (AIC)100 CFOs

September 2008:7(c) 2010 Envision Strategic Group, LLC.


PeopleMgt

PeopleMgt

Financial Reporting

Liquidity

Capital Structure

Financial Reporting

Liquidity

Capital Structure

OperationsOperations

Legal,

Regulatory

and

Litigation

Legal,

Regulatory

and

Litigation

Human Resources

Chief Legal

Officer

Chief Financial Officer

Chief Operations

Officer

Strategy

and

Management

Strategy

and

Management

CEO,Senior

Management

Who Buys Insurance? How is Risk Managed?

Who Bridges the Gaps Found in the Client’s Organization?



Identifying Business Exposures

1

23

Relative Uncertainty

Rela

tive

Impo

rtan

ce 6

5

Higher

Higher

Lower

4

7

8

9

1

Credit availability

Technology breakthrough

3

4 Stringent regulatory environment

Industry consolidation5

6 Radical greening

7

Deepening recession

2

AN ILLUSTRATION

Global License to Operate

8

Cost cutting

9 Supply chain

10 Employee safety

10



Opportunities to Outsell the Competition:

Do you know which problems are producing pain?

• Bring your technical expertise to CEOs and CFOs by identify the exposures facing their business.

• Highlight your process to uncover and address their risk exposures. (Do they see these as pain producing?)

• Your buyer wants results (save time, money, increased coverage). Position loss control beyond activities.

Clients have to buy insurance. They getto decide if they want to invest in safety.

10

(c) 2010 Envision Strategic Group, LLC. All rights reserved.

Why Organizations Invest in Safety1. Reduce Cost of Insurance2. “Right Thing to Do”3. Fed/State Regulations4. Too Many Accidents5. Leadership that believes EH&S is a

culture that connects to the long term success of the organization

11(c) 2010 Envision Strategic

Group, LLC. All rights reserved.

Risk Management Standard ISO 31000Let’s identify, analyze and evaluate our

“selling safety” opportunities.



1. Identifying the risk maturity of prospects and clients.

2. Analyzing where they need to be to meet/exceed underwriting standards.

3. Evaluate what services will put them in the best position relative to “risk transfer” first then determine capabilities to progress to “risk management”.

This puts your team in a position to help your clients and “sell safety” only to those clients who are buyers.



Client Maturity

Large Small

Survival

Thriving

RECEPTIVENESS



Safety Maturity“We like to think that all 10,523 of our employees

are safety professionals – as we invest both the skills and responsibilities in each of them to ensure the proper application of safety principles for every operation, every day,”

Mike Snyder, director of corporate safety, industrial

hygiene and loss prevention



Why Maturity Matters?

• Positive results for client– Compliance– Positive influence on carrier

underwriting– Business impact on bottom line

• Profitability through enhanced efficiency and productivity

These clients appreciate your safety resources to improve their performance. So what about everyone else?



Client Readiness to Solve ProblemsWhat help will they buy?

EnhancedBusiness performanceAdd to their success

StandardBusiness opportunity – improve

safety/risk management

BasicDesirable risks – Help with carrier

recommendations



What Basic Clients “Needs to Know”(These are not safety buyers)

• These clients are having bigger problems than just safety. You need to help them be insurable first.

• Producer’s Dilemma– Connecting safety to perceived issues?– Motivating busy client to make time for safety

presentation?– Time/expense to bring in-house safety pro to meeting?– Will effort to sell safety take client beyond their readiness?– Will buyer be handing off safety discussion to HR, Facilities,

etc.?– How will the safety activities translate to results?



Basic ClientsThese folks are not ready to buy

They are in business survivalYou can help them:

• Understand regulatory compliance and consequences of non-compliance.

• Comply with recommendations from the carrier.

• Establish roles and responsibilities for safety management.

• Deal with demands from clients, vendors and suppliers for safety, health and environmental activities.

• Bring basics requirements to management.



Understanding Clients Buying Needs• Pre-package service

• 3 Levels of Support– Enhanced– Standard– Basic



Strategies to Communicate

• Planning –– Know what you want to walk away with from the meeting

• Which package and why– Basic – Meets underwriting standards – Standard – Wants to improve – Enhanced – Wants to excel & be inspired

• Aceing the Meeting:– Matching message to client’s readiness– Clear client benefits in presentation materials– Leverage personal relationship with buyer

• Decide who delivers the message



Up for Consideration– Setting criteria to stratify clients by safety maturity

– Realistic assessment of client readiness

– Help Producers match message to buyers

– Revisit your loss control staff expertise -does it match your clients needs/wants?

– Inspire incremental improvements

– Keep clients insurable and meeting underwriting criteria

– Promote loss control services as a “value-add”

22(c) 2010 Envision Strategic

Group, LLC. All rights reserved.

Questions?

ThanksFay Feeney, CSP, [email protected]



mailto:[email protected]

Are You Selling Safety? Anyone Buying? November 2009

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