Survey shows large agencies increasingly hiring risk managers

According to a recent compensation and benefits survey, conducted by the Business management Group Inc. (BMG), larger insurance agencies are more likely than not to employ a director of risk management, a claim specialist and a loss control specialist. BMG’s ‘2005-2006 Non-Producer Compensation & Benefits Survey’ reports signs of an evolution in risk management with the role of agents and brokers expanding incrementally. In addition, the survey found that claim and loss control specialists typically worked in insurance companies. However, recently it appears that these professionals are also being integrated into mid-size and large insurance agencies that have added them to their employee roster to secure their competitive edge by offering extra service to their larger clients.Suzy Hammett, BMG vice president and author of the study, discloses the surveys findings: claim specialists occur in 69% of agencies that report revenues of $5 plus; director of risk management positions are found in 53%; and, loss control specialists are in 56%.BMG conducts this survey bi-annually, with the latest survey now including salary and benefits information. This increasingly in-depth insight reflects increased job specialization and new positions. In addition, the survey reports compensation and benefits now account for 55% to 65% of an agency’s expenses as a percentage of revenues. A trend towards the shortage of trained producers is also prevalent. “Mid-sized and larger agencies and brokers that are focused on growth usually find it too expensive to recruit trained staff from competing agencies. Instead, they’re hiring a full time sales manager to train and mentor new staff, then recruiting producer trainees with non-insurance sales backgrounds and training them in-house,” Hammett reports. Approximately one-third of agencies with more than $5 million in revenues and in more than half the agencies with revenues of $10 million or more are reporting incidence of this trend.