how underwriters negotiate so customers celebrate
TRANSCRIPT
How Underwriters Negotiate
so Customers Celebrate
I know how to get candy, do you…?I know how to get candy, do you…?
Negotiation is…
The art of working with others to achieve toward a mutually satisfactory solution.The art of working with others to achieve toward a mutually satisfactory solution.
Ritual conflict.Ritual conflict.
The process of allocating costs and benefits.The process of allocating costs and benefits.
Psychological warfare/Smash mouth.Psychological warfare/Smash mouth.
A mystery not worth solving.A mystery not worth solving.
Workers Compensation Fund
20,000 policyholder-owners20,000 policyholder-owners Dual Distribution Channel Dual Distribution Channel 30 Independent agencies
- 200 producers30 Independent agencies - 200 producers
MVV’s Compassion, Expertise, Integrity, Respect, Accountability, Teamwork
MVV’s Compassion, Expertise, Integrity, Respect, Accountability, Teamwork
Why WCF?
+Safety consulting+Safety consulting
+Dividends+Dividends
+Local claims service+Local claims service
+Managed Care Savings+Managed Care Savings
+Online Tools+Online Tools
+Policy Holder Input+Policy Holder Input
3 Negotiation Pressures
See R. Mnookin et.al.
Being nice & kind
vs.
being firm & assertive
Being nice & kind
vs.
being firm & assertive
1111
My gotta haves
vs.
our partnership potential
My gotta haves
vs.
our partnership potential
2222
I negotiate for the company
vs.
I negotiate for me
I negotiate for the company
vs.
I negotiate for me
3333
There is never enough
Barriers to Negotiation Excellence
Lack of training Lack of training
Easy to “blame the market”Easy to “blame the market”
It’s company policy … It’s company policy …
No clear company model of successful negotiation processes or outcomesNo clear company model of successful negotiation processes or outcomes
We are our own worst enemyWe are our own worst enemy
Maslow’s Message“To be a prime mover,
to have control over one’s fate, to carry out and to succeed, to be a person rather than a thing,
to make one’s own decisions, to have other’s acknowledge one’s work
life.”
If you can
ask a question
You can negotiate
D. Cooperrider
the best of what is
Craft what will be now
Why it works
The customer doesn’t really know if they are getting a good deal; but they always know exactly how they are treated
The customer doesn’t really know if they are getting a good deal; but they always know exactly how they are treated
If they say it, then they own it.If they say it, then they own it.
You become both facilitator and negotiatorYou become both facilitator and negotiator
The negotiation is centered on the customer’s business goals and values
The negotiation is centered on the customer’s business goals and values
The other side will take shots at you.
All you need is...
…and tactic smarts.
Organize & deployOrganize & deploy
Be yourselfBe yourself
Adapt Adapt
Think combinationsThink combinations
Be kind and possible to provokeBe kind and possible to provoke
Offers & Concessions
Adapted from G. Subramanian , 2005
Youmustgivewhatyouwant
Youmustgivewhatyouwant
Makebiggestconcessionearlyfollowedbysuccessivelysmallerones
Makebiggestconcessionearlyfollowedbysuccessivelysmallerones
Swapbundlesofissues&potentialconcessions
Swapbundlesofissues&potentialconcessions
Alwayssellthevalueofyourconcession&yourgoodnature
Alwayssellthevalueofyourconcession&yourgoodnature
Always make the first offer
Always make the first offer
BigConcessions≠Bigconcessions
BigConcessions≠Bigconcessions
MediumConcessions=Mediumconcessions
MediumConcessions=Mediumconcessions
Qualities of great agreements
UniversalityUniversality
ReciprocityReciprocity
PublicityPublicity
Confidant ApprovalConfidant Approval
EnduringEnduring
M. Wheeler, 2005
“
”GERALD WILLIAMS
Layne KertamusWorkers Compensation Fund
Happy Negotiating!