In this episode of Power Producer Shop Talk, host David Carothers delivers a masterclass on navigating the shift from a hard to a soft market, emphasizing that the time to prepare is now. With reinsurance renewals signaling a softening, David warns that the easy “price shopping” wins of the hard market are disappearing, and producers must pivot to value-based selling to displace incumbents who are now delivering good news (rate decreases).
David also breaks down the Total Cost of Risk (TCOR) conversation, explaining why it is the ultimate differentiator for accounts in the $100k-$250k premium range. He details how to uncover “hidden” costs like active vs. passive retained losses and why many businesses are overpaying by acting as their own insurance company without getting the credit for it.
David explains that while the message remains consistent, the delivery must change as we move from a hard market (where incumbents deliver bad news) to a soft market (where they deliver rate decreases). Producers must “sew their seeds” now by cleaning up accounts and focusing on Total Cost of Risk to lock in clients before the next hard cycle hits.
For producers intimidated by financial jargon, David simplifies TCOR. It’s not just premium—it’s the sum of insurance costs, retained losses, and risk management expenses. He explains that using the word “cost” instead of “price” or “premium” instantly elevates the conversation and positions you as a strategic partner rather than a vendor.
David dives into the nuance of retained losses. An active retained loss is a conscious decision (e.g., a high deductible or choosing not to buy cyber coverage). A passive retained loss is an unexpected hit (e.g., an uncovered claim due to an exclusion). He shares a story of a contractor paying all claims under $5k out of pocket without getting any deductible credit—a massive opportunity for a savvy producer to step in and structure a proper program.
David shares a personal example of how he handles Department of Defense (DoD) contractors. Since he lacks the security clearance to inspect classified manufacturing areas, he uses a service called Yellowbird to hire ex-military professionals with active clearances to perform the loss control inspections. This creative problem-solving eliminates a major barrier to entry that stops most competitors in their tracks.
While TCOR works for larger accounts, David argues that the $100k-$250k premium space is the “fertile ground” where this conversation is most effective. These businesses are often large enough to have complex risks but small enough that they haven’t been introduced to sophisticated risk management concepts by their current broker.
Most commercial insurance producers believe their edge comes from relationships, market access, or quoting speed. Those things matter. But at the middle market level, they are no longer enough.
The producers who consistently win larger accounts, earn underwriter trust, and build long term career leverage all share one trait that rarely gets talked about openly.
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.
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