Homeowners Insurance "Billable Hours" Question

[Agent12345]

What would everyone say that they are seeing as the time it takes to write a new homeowners policy? Not total time from start to finish but "billable hours"; how much actual time do you spend on paper work, talking to the customer, etc. before everything is taken care of?

 

[CaptiveGuy]

About 10 minutes talking to the client and explaining coverage (new homeowners may take longer). It takes me about 5 minutes to get the quote especially if I have the appraisal and photos. Data entry is the longest part but most things prefill. Another 5 minutes or preparing the invoice and binder for the mortgage company or emailing the application to the client.

With a smooth process it doesn't take my office more than 20 minutes start to finish most times.

 

[Guest]

What would everyone say that they are seeing as the time it takes to write a new homeowners policy? Not total time from start to finish but "billable hours"; how much actual time do you spend on paper work, talking to the customer, etc. before everything is taken care of?

I actually think this way. My goal is to spend most of the time prospecting the right type of client and spend as little time as possible on the back end. In my head/ front end makes money and backend cost money.

I have found the customer who has a credit score under 690 takes 4X more backend time than the client who's credit score is 700+.this is partly due to the customer and partly due to the backend underwriting of the carriers who will write those with lower credit.

As a result, I focus on the 700+ credit people. The reason the better carriers take less time is 1. Most if their underwriting is done on the front end (not the back end) 2. They normally have really good customer service... And take advantage of it!!! 3. Lastly, 700+ credit clients are less drama and I have a lot better claims ratio w/ them!

The great thing, due to their credit, it is a LOT easier to bundle this custom. I only bundle year long auto policies. Just as an example, if the home policy is $1000, you only make $150. By bundling the auto, you triple the commission. Figure $2000 a year for the auto policy, the bundle makes you $450.... Hence, a better billable hour. Add 2-3 umbrella policies a month with this client and you are golden. I bundle about 85% of my policies.

So, it takes about 2 hours between quoting and explaining the policy. Add about an hour meeting with them to sign the policy. Why meet them??? Really good referrals!!!

Now the backend, it takes about 20 min. to add the client and scan signed apps into the management system.

When the client calls in and press the customer service option on the phone system, they are transferred directly to the carrier. Saving me SO much time and not draining marketing and quoting time. Hence, reducing negative billable hours.

There are a lot of ways to do it, this is what has been very successful me. Increase sales, reduce overhead and time spent on service.

Typing from my phone so I am sure there are typos

 

[insurance1822]

Id say the total time required (initial call, inputting data into rater, finalizing with carrier, closing call, mailing application, etc) is probably 1 hour of "total" time. Dealing with underwriting concerns is not included.

Almost everything I do is new home buyers, and I have a process I follow each time that may be more in depth then others. Emailing the referral source, confirmation emails to policyholder etc