Cross Selling: Health Clients to P&C?

[insurance404]

My business revenue has grown 100% each of the past two years (due to the ACA in WA state).

Since I have a large book of business for health ins clients I'm looking to expand into other lines. Individual health is about 90% of my Revenue.

Will start cross selling into Life & Disability more...

YET, I wanted to know what your advise is on doing Auto & Homeowners Ins???

Right now I send a considerable amount of auto to another agent that pays me a 25% ongoing commission...

Thanks for the tips or am I thinking crazy to diversify too much? I'm just worried the ACA revenue could go away if commissions get cut somehow...

 

[insurance1822]

My business revenue has grown 100% each of the past two years (due to the ACA in WA state).

Since I have a large book of business for health ins clients I'm looking to expand into other lines. Individual health is about 90% of my Revenue.

Will start cross selling into Life & Disability more...

YET, I wanted to know what your advise is on doing Auto & Homeowners Ins???

Right now I send a considerable amount of auto to another agent that pays me a 25% ongoing commission...

Thanks for the tips or am I thinking crazy to diversify too much? I'm just worried the ACA revenue could go away if commissions get cut somehow...

From a capture standpoint (with a bunch of P&C carriers) you should be able to get a large amount of people to quote & close. The issue that I've seen in the past is life/health agents underestimating P&C. You need to make sure you know what you're doing & the service work will eventually start to build up (changing cars, claims, billing questions etc..) which is something that people underestimate. The money in P&C comes from building a book over the long term. If you (or your staff...) already knows what they're doing w/ P&C then I believe you have a great opportunity.

You'll need carriers (search the forums about how to get them..) and they'll most likely want to see somebody in the operation w/ experience. They'll want some level of consistent production too so if you're going to take it on...you're gonna have to take it on full bore. Will you be able to do that w/o taking away from your Health business? Maybe you're slightly over-staffed at which point you already have the manpower?

 

[insurance404]

Thanks for the tips!

I worked at Marsh doing commercial ins, so have some experience. However those were min $500,000 premium clients.

I will hire a FT experienced P&C person to do all the work. I will be there as a backup to them...

I definitely will get set up with all the software and structure in place first. Have seen too many agents crash and burn when they expand too quickly.