Working with property & casualty agencies of a variety of sizes and experience levels, I see a multitude of new agents come into the business who, although licensed, have little to no P&C insurance experience. They come from different places—whether it's within the insurance industry, in an adjacent field like financial services or real estate, or a completely different walk of life—with hopes that their skills will transfer over. 

Many of them plan to sell personal lines because it was easy for them to learn and understand during licensing class. They feel good to go after passing the exam. The fact that the lowest price gets the account makes sense to them, so they want the most competitive markets. But then someone approaches them to write their business policies and the allure of the higher commission is just too much to turn down. Now they're standing on the edge of an errors & omissions cliff.

Many of us grizzly veterans can remember that stage of our career. We were all naive to the insurance industry and its rules and regulations. Our training came mostly from on-the-job experience. We learned by doing, but a big difference between then and now is the amount of responsibility created by insurance regulations, the complexity of the products, new and multifaceted exposures—like cyber liability and artificial intelligence (AI)—and the desire for a client to engage an attorney immediately after a loss.

Working with newly licensed agents and owners, I have seen firsthand common mistakes they make, such as:

• Sacrificing coverage for price without talking to the client.
• Missing coverage needs by not asking the right or enough questions.
• Using the information in the current policy without verification that it is correct.
• A lack of experience needed to perform proper coverage analysis.

These mistakes can trigger an E&O claim and result in a catastrophic financial loss for the agent or the agency. If this happens, the agent's credibility and reputation are considerably tarnished.

To avoid making these mistakes and successfully transition into the insurance industry, follow these four tactics for success:

1) Find a mentor. You cannot be a successful insurance agent without performing the role. Doing it by yourself is a high-risk, low-reward strategy. You need to find someone who will be transparent with you and willing to tell you when you are heading in the wrong direction. You will need someone to help you determine approaches for particular clients, help you ask the right questions to uncover coverage needs, and provide honest feedback.

There are several qualities that you want to look for in choosing a mentor. Here are some that are the most important:

• Patience. Mentoring involves answering the same questions multiple times, repeatedly explaining concepts, numerous discussions over the value of ACORD forms, and the never-ending debates over price versus coverage. For a mentor, patience is more than just a virtue.
  
• Experience. Finding someone who has already made mistakes and learned from them so you do not have to is extremely valuable. It preserves your reputation and credibility. You want to look for someone who is well-versed in products and coverage and has exposure to clients in a wide range of business types. It is also helpful if the mentor built their book of business from scratch and has walked in your shoes.
• Education. Our industry is constantly evolving, particularly in the areas of social change, utilization of AI, the impact of cybersecurity and climate change. All of these will continue to have an impact on exposures that will need to be covered by insurance. This means it is important to have a mentor who considers themselves a student of the industry and is committed to continuing education and training, above what is mandated to keep a license active.
• Teaching. The ability to break down concepts into plain language and pick examples to convey and reinforce certain points is not something everyone can do. Find somebody who can.

2) Join an agents' association. As a newly licensed agent, you may not be aware of the value that an association can bring you. They offer a wide range of educational resources, a multitude of services, and a variety of products that will help you to improve your skills and abilities.

3) Get a certification. There is no shortage of certification programs available in our industry. They can include a specific product, such as workers compensation, a line of business or a professional designation, such as charted property & casualty underwriter (CPCU) or certified insurance counselor (CIC). 

4) Attend carrier education programs. There is no better source for learning about a product than being trained by the carrier who designed it. Carriers offer introductory courses that will give insight into a particular line of business. An additional value of attending those classes is you'll be introduced to trainers, who you can build relationships with to ask questions and discuss situations that you encounter when your mentor may not have the answer.

Being new at anything comes with a learning curve that diminishes with experience. Being a new agent in the P&C insurance industry has a steeper learning curve that needs proactive thinking, planning and resources to overcome it quickly. Waiting to gain experience can lead to unforeseen results and negative consequences. 

Being a producer demands commitment, fortitude, patience, and—most of all—perseverance to succeed. If you give it your all and follow these tips, you can make a great living.

Christopher Clinton is a consultant with SIA of NC, a Big “I" member firm based in Jacksonville, NC.