In this episode of Power Producers Shoptalk, host David Carothers
kicks off a new series on captive insurance with special guest Warren
Cleveland of Captive
Coalition. They dive into the critical dilemma facing insurance agents
today: the risk of losing their best clients to competitors who offer captive
solutions. David
and Warren
discuss why many agents are unaware or unprepared for this threat, leaving
their top accounts vulnerable. The conversation focuses on the necessity of
being proactive, identifying the right opportunities for captives, and
integrating this conversation into an agent’s workflow to protect and grow
their book of business.
Warren
Cleveland shares a personal story of losing a $300,000 revenue client,
not because of poor service, but because he couldn’t offer the captive
solution they needed. The discussion highlights that the biggest clients are
actively being targeted, and business owners are seeking solutions for the lack
of transparency and control in the traditional insurance market.
The conversation stresses the importance of initiating the captive
conversation before a competitor does. David and Warren
explain that if an agent has to react to a client’s question about captives,
they are already in a defensive position and have likely lost control of the
relationship.
The episode outlines the ideal profile for a captive
prospect: typically businesses spending $250,000 or more in casualty premium
with a good loss history and a commitment to risk management. They
strongly advise that these conversations should not happen at renewal but
rather as part of a forward-looking, strategic discussion during events like
quarterly claims reviews.
David
explains how leveraging captives can allow agents to expand their
geographic footprint and dominate a specific niche, like HVAC contractors. By
becoming the expert, an agent can build a substantial book of business by
targeting middle-market accounts that other agents are neglecting.
If agents don’t bring up captives, frustrated
business owners will search for solutions themselves. Warren notes that
many captive managers are ready to work directly with these business
owners, cutting the original agent out of the picture entirely. The key
takeaway is that agents must own and control the conversation.
In the ever-evolving world of commercial insurance, marketing has become a critical lever for growth. Yet most agencies still struggle to understand what’s actually working. From websites that generate leads with no attribution to CRM systems that silo vital data, insurance agencies are often flying blind.
If you’re a commercial insurance producer trying to grow in the middle market, you’re probably aware that the old-school prospecting methods—cold calling hundreds of businesses, dropping off trinkets, hoping someone is “coming up on renewal”—are no longer enough. In today’s competitive environment, success isn’t about how many people you reach. It’s about reaching the right people at the right time with the right message.
Too many agents stop learning once they’ve earned their license. The bare minimum—meeting continuing education requirements—is not enough in today’s climate. Producers often resort to online forums, asking where they can complete CE hours “as quickly as possible.” This mindset directly impacts their ability to communicate complex subjects like reinsurance or risk modeling to clients in an understandable way. As a result, they struggle to retain accounts and close new business in an increasingly competitive market.
The problem? Too many producers are pitching too soon, to the wrong people, with nothing more than a quote to offer. This article walks through how to close more business by positioning yourself as a trusted advisor, selling Total Cost of Risk (TCOR) outcomes, and using a structured approach to differentiate at every stage of the sales process.
In the modern commercial insurance landscape, trust is no longer built solely through in-person meetings, networking events, or polished brochures. It’s earned digitally—often before a prospect ever takes your call. As sales dynamics shift and competition tightens, the producers who will thrive are those who understand one thing: educational content is the new handshake.
Most commercial insurance producers think of referral networks as an afterthought—something that might generate a lead or two if they attend enough events, shake enough hands, or stay active in their BNI chapter. But the producers who consistently dominate the middle market think differently. They treat referral networks like revenue engines, built with the same discipline as a sales pipeline, and they use those relationships not only to generate appointments but to recruit the next generation of elite producers.
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