Is total cost of risk even a thing, or is it just a cliche buzzword that insurance salespeople are out there using, trying to make themselves look different in the marketplace? Well, here’s what I’m going to tell you today, if you’re an insurance salesperson, I’m getting ready to rock your world and show you why guys like me take business from you every single day. Stay tuned for the next couple of weeks because the content we’re dropping is all total cost of risk-oriented, and it will change the way you play the game.
Total cost of risk is not a cliche. It’s not some buzzword that people randomly throw out there. It’s a weapon that the best producers in the country use at the point of sale to take business from insurance salespeople. The fact of the matter is if you want to up your game and you want to go to the next level, you have to understand more than policy language and premium. You need to speak to an executive leadership team about inefficiencies in their operation, specifically the risk management function.
Over the next several weeks, I will release a bunch of content, and we are going to dive deep into total cost of risk. Why? Because you need to know it, and you need to understand it. More importantly, when a competitor comes in and takes a piece of business from you and your loyal client leaves and pays 5,000 or 10,000 more in premium to have somebody else represent them, you’re going to have the answer as to why.
So, what’s total cost of risk, what is it? Well, it’s the quantifiable expenses associated with the risk management function of any organization. What are the measurable costs? We’re not going to drill down too far. I’m going to give them to you in a subsequent post, but things like insurance premiums and retained losses are, undoubtedly, some things that come to mind. Indirect costs and claims, things of that nature are also contemplated. Essentially, the total cost of risk is a dollar sign that you can put in front of an amount of money that any organization is spending for their risk management unit.
Some organizations may have a risk manager, guess what? Their salary, that’s part of total cost of risk. They may bring in outside consultants, the money they pay, part of total cost of risk. You need to understand what this is and ask the right questions to get the dollars associated with the various components so that you can quantify that and deliver that in a message to your clients and prospects. So, that they fully understand their costs associated with the risk management function of their business.
If you’re an insurance salesperson, it’s only going to be about premium to you. You’re going to sell on price, and you’re going to die on price. But if you genuinely want to sell on value, if you genuinely want to make a difference in the middle market, and if you’re going to speak music to a CFO’s ears, have those conversations around total cost of risk. And you have my word that I’m going to do everything I can to equip you with the knowledge you need to go out there and do it. If you listen to the upcoming series on total cost of risk, you’re going to kill it in commercial insurance.
We can talk all day about marketing funnels, quoting platforms, and prospecting strategies—but if you don’t have people who can sell, none of it matters. Every agency owner I talk to says the same thing: “We just can’t find producers who can sell.”
The Protege Season 3 cast met with special guest mentor Charles Specht to talk about what it really takes to build a million dollar book of business in the commercial insurance world. The result was one of the most valuable mentoring sessions the group has ever had.
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You could feel it—every producer, coach, and guest mentor knew this was the official start of something special. The conversation wasn’t just about competition. It was about purpose, legacy, and growth.
Hosted by David Carothers, creator of The Protege and founder of Killing Commercial, this kickoff call set the tone for what Season 3 will represent: a proving ground for producers who are ready to work harder, think deeper, and build something that lasts.
Influence is one of the most powerful tools we have in business, leadership, and personal life. Used well, it inspires people, builds trust, and creates ethical results. Used poorly, it can slide into manipulation and self-interest.
Reinvention is one of the most powerful themes in the insurance industry. Some of the best commercial producers in the country did not grow up wanting to sell insurance. They did not study risk management in college. They did not come from an agency family. They found this industry after they tried something else. They found it after life pushed them toward a career where performance, autonomy, and mindset determine the outcome.
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