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

lkertamu@wcfgroup.com385-351-8025

Happy Negotiating!