Are You Selling Safety? Anyone Buying? November 2009

If You’re Not Out Selling
Loss Control,
You’re Being Outsold
INTERSURE ANNUAL MEETING
NOVEMBER 8 – 11, 2010
1
(c) 2010 Envision Strategic Group, LLC.
All rights reserved.

Fay Feeney, CSP, ARM
Principal
Envision Strategic Group, LLC
Advising Executives on Improving Business
Performance by Focusing on
Opportunities & Risks
2

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.
3

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….
4

2010 Business Influences
Demands 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
5

@NACD 2010 #NACD Public Company
Governance Survey: nearly 70% of
directors claim they have not defined the
company’s “#risk appetite” statement
6

Addis Intellectual Capital (AIC)
100 CFOs
September 2008:7

People
Mgt
Financial
Reporting
Liquidity
Capital
Structure
Operations
Legal,
Regulatory
and
Litigation
Human
Resources
Chief
Legal
Officer
Chief
Financial
Officer
Chief
Operations
Officer
Strategy
and
Management
CEO,
Senior
Management
Who Buys Insurance?
How is Risk Managed?
Who Bridges the Gaps Found in the Client’s Organization?
8

Identifying Business Exposures
1
2
3
Relative Uncertainty
RelativeImportance
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
9

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 get
to decide if they want to invest in safety.
10

Why Organizations Invest in Safety
1. Reduce Cost of Insurance
2. “Right Thing to Do”
3. Fed/State Regulations
4. Too Many Accidents
5. 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 31000
Let’s identify, analyze and evaluate our
“selling safety” opportunities.
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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.
13

Client Maturity
LargeSmall
Survival
Thriving
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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
15

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?
16

Client Readiness to Solve Problems
What help will they buy?
Enhanced
Business performance
Add to their success
Standard
Business opportunity – improve
safety/risk management
Basic
Desirable risks – Help with carrier
recommendations
17

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?
18

Basic Clients
These folks are not ready to buy
They are in business survival
You 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.
19

Understanding Clients Buying Needs
• Pre-package service
• 3 Levels of Support
– Enhanced
– Standard
– Basic
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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
21

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?
Fay Feeney, CSP, ARM
310-372-0591
fay@123safety.com
www.123safety.com
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Are You Selling Safety? Anyone Buying? November 2009

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