Avoid Bad Loss Ratio?

[bodbod]

Looking for other agency owners OR sales agents advice, especially for Personal Auto Insurance but maybe same methods apply to other insurance so I'm all ears. A little background on my agency, we advertise through social media and we just write anyone online who likes our rates. We dont really ask them a lot of questions, yall let me know if thats part of the problem to..

How do you keep loss ratio low "avoid people making claims" while at the same time try to bring in new business?

When clients get insurance, they don't hesitate to make claims because to them thats what they have insurance for..HOWEVER if the agency has a bad loss ratio, the insurer might terminate the agency. Also its very hard for agencies with "bad loss ratios" to get direct appointments

Are there specific questions you ask them before quoting "Even though they can lie"? Or do you just not write people with a certain amount of claims or accidents or additional driver you pull from the MVR?

 

[AZDave]

How bad are your loss ratios?

To make sure your agency is a loss leader, I recommend the following:
Write auto only
Write low limit insureds
Write anyone that has a car and the down payment
Let your rater do all the quoting and work
Sell price/cost only

If you wish to make a profit, just do the opposite.

 

[Markthebroker]

we advertise through social media and we just write anyone online who likes our rates. We dont really ask them a lot of questions, yall let me know if thats part of the problem to..

Yes.

 

[MichaelRS]

How bad are your loss ratios?

To make sure your agency is a loss leader, I recommend the following:
Write auto only
Write low limit insureds
Write anyone that has a car and the down payment
Let your rater do all the quoting and work
Sell price/cost only

If you wish to make a profit, just do the opposite.

Preach!!

There are three types of clients:

1) Price only
2) Price & coverage - best value
3) Coverage above all

Shoot for 2 & 3 and your loss ratio will be OK.

Quality over quantity.

Retaining accounts is how you make money. If you have to sell a new account to make up for a lost one, congrats, you just broke even.

Shoot for 90%+ retention annually and decade accounts.

I'm in commercial. I want work with clients for 25 years and then work with their kids who take over the business. That is how you make money.

 

[rousemark]

Looking for other agency owners OR sales agents advice, especially for Personal Auto Insurance but maybe same methods apply to other insurance so I'm all ears. A little background on my agency, we advertise through social media and we just write anyone online who likes our rates. We dont really ask them a lot of questions, yall let me know if thats part of the problem to..

How do you keep loss ratio low "avoid people making claims" while at the same time try to bring in new business?

When clients get insurance, they don't hesitate to make claims because to them thats what they have insurance for..HOWEVER if the agency has a bad loss ratio, the insurer might terminate the agency. Also its very hard for agencies with "bad loss ratios" to get direct appointments

Are there specific questions you ask them before quoting "Even though they can lie"? Or do you just not write people with a certain amount of claims or accidents or additional driver you pull from the MVR?

Ask them, "Do you intend to use this insurance?"... If they say yes, don't write them.

 

[Markthebroker]

Ask them, "Do you intend to use this insurance?"... If they say yes, don't write them.

Lolz.

Maybe if all the gun shops asked the same question, then we could stop all gun violence? Lol.

 

[rousemark]

Lolz.

Maybe if all the gun shops asked the same question, then we could stop all gun violence? Lol.

Unless you are an 80 year old convenience store owner. Then it is OK to answer, "Yes".