The responsibilities of a CSR vary based on the culture of the agency. Some agencies expect the producer to do a lot of the service work and the CSR to support the producer. On the other end of the spectrum, some agencies require the CSRs to handle their own book of business with little input from the producer after the account is written. Some CSRs may be expected to sell or do some other duty as well, such as accounting.   

It is important to match the temperament of the CSR to the agency's culture.  Don't hire a "go-getter fireball" when the producers like to control the account service. A meek CSR will fail in an agency that treats the CSR as an account executive.

The basic job of the CSR boils down to the collection, processing and distribution of information. The collection of information tends to be the most significant skill. The CSR needs to know what information to gather and how to ask for it. Patience, determination and diplomacy are necessary whether probing the client for pertinent information to complete a claim form or quizzing a producer when filling out an application.  

 The skills required to be effective at the collection of information are rooted in a person's natural abilities. The CSR needs to follow a logical path to collect all the data. Then, when each fact is determined, the CSR needs to rapidly recall all the related issues and understand how they may affect the other aspects of handling the account.  

The CSR needs to be a "people" person. Good social skills and the ability to act as a go-between for the different parties-clients, producers, underwriters and agency owners-are a must. A CSR needs to be able to handle complaints and negotiate a favorable outcome. A qualified CSR has the ability to say "no," can take criticism from others and provides constructive input to resolve problems.  

The typical CSR spends about half of her time talking to clients or insurance company personnel gathering and distributing information and problem solving. The balance of her time is spent on paperwork and computer input. 

Because of this emphasis on listening and talking, communication is a CSR's most important skill. Look for it when hiring-it is a natural skill that she must already possess. Technical knowledge can be easily taught later. 

Contact Oak & Associates  

for a free sample job description for CSRs.  

This seminar will cover: Reasons for a Business Valuation, The Development of a Financial Pro Forma, Factors that Affect, Agency Value, Valuation Methods and Approaches, Analyzing the Agency Financial Picture, Creating the Agency Budget.

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Take the time to find the person who possesses that "perfect" blend of diverse skills and knowledge. The "perfect" CSR looks different when placed in front of the background of each agency.  

            Understanding your agency's needs and expectations must precede any hiring.  Hire only those who will "fit" the agency's culture. Don't allow a candidate's technical skills or years of experience to cloud your judgment-hire only those who have good communication skills.  

            Good CSRs will make the operation run smoothly and efficiently. Hiring the right CSRs for the agency will enhance agency value, which benefits everyone.  

Look for people that have: 

• Excellent oral communication
•  Strong negotiation skills
•  Self-starter
•  Ability to handle complaints effectively
•  Strong discipline to follow up
•  Great rapport with a variety of people

A good way to look at compensation is to do a quick reality check.  Simply take the commission dollars to be handled by a CSR and subtract compensation costs (include taxes and benefits) to determine what the "spread" is for that specific position. 

The next step is to evaluate if the remaining dollars is enough to cover producer compensation, overhead and provide a fair return to the owners.  This analysis will have to rely on a "gut feel" rating.  Unfortunately there are no reliable benchmarks on what the spread should be since there are too many variables from agency to agency. 

The bottom line for this process is to see if there is a fair return to owners after expenses are taken out.  A low return or loss will require an adjustment to compensation (CSR or producers) or somehow overhead costs would need to be lowered.  If adjustments are not feasible, then management must think about rehabilitating or getting rid of that specific book of business.     

The analysis of affordable compensation is important, however, what an owner may feel is appropriate unfortunately may not be the same as what they will need to pay.  After all, the market is the final arbiter of employee salaries.   

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for our CSR Salary Survey