Marketing Personal lines

[1manshow]

Just read an article the other day in American Agent and Broker that predicted the soft market pricing would last well into the future and that growth was very stale for most agencies.

The rest of you experiencing competitive concerns, soft market issues ? Just wondering what some of you are doing to market successfully in today's P & C personal lines market ?

We have several successful programs running right now, but I'm hoping to add to those throughout 2008. Any ideas ??

 

[djs]

I agree that most agencies will not grow. This is simply because for most agencies to grow (talking P&C), they need to add staff, invest in technology, etc, etc. In many cases, it would cost them more to grow than to stay where they are and improve the quality of their book of business. This is caused in a large part because (in Silican Valley at least) not many new agents started with new agencies from about 15 years ago till about 4 years ago. The dotcom boom got in the way.

All this led to existing agencies becoming pretty comfortable with their book of business. Heck, even today, in my area, not many well established agents bother advertising for new business, they just stick with the business they have, and work that for any additional business.

New agents are a bit hungrier, and have plenty of room to grow. Everyone still needs coverage. Online insurance is growing, but simply not as robust as the commercials would lead you to believe. This has also lead to big call center type of selling, which works, but retention is terrible.

Right now, my biggest success in P&C is with used car dealers. I can write as many policies as I have time for in that market. Not the best of all policies, but not bad either. You just have to be able to write virtually everyone, with or without a valid license, good rates for good drivers, and not outlandish rates for those with 2 DUI's, 2 accidents, and 2 minor cites, with a suspended license.

The real estate market has died, which is a shame, since that is the bread and butter market for P&C agents. There is still a lot of business out there, with people who let thier policies lapse and are suddenly seeing force placed insurance from their lender, or, in California, replacing Allstate policies due to their recent rate increase.

Bottom line, plenty for those who want to work. Not so much business for those who want it to fall in their laps. In my opinion, terrible time to chase internet P&C leads, they seem to be worse than ever.

Dan

 

[T A]

Good right up Dan, insightful. I enjoyed it.

 

[Chkndinner14]

According to Rough Notes this month the soft market will continue in to 2008. The average commercial account is seeing a 15% decrease in their renewal. As for the personal lines, most premiums are going down as well, since most insurers are enjoying a nice underwriting profit. In a soft market it is hard to expand i.e. staff, expensive marketing, etc, when your revenue is headed south. It is hard to outwrite the loss of premium you are experiencing. So, most agents dig in and wait, focus on their existing books and find inexpensive ways to market. I have tried to expand into a soft market before, it was an expensive lesson. Opened up another storefront and added staff, good idea, bad timing. Still a great business though.

 

[Soaringagent]

Thank you for the tips - great advice

 

[jmmauthe]

I do know that some L&H agents provide 'onsite sign up/information' at businesses. My brother was telling my about his experience with an AFLAC agent that was at his Corporate office for the employees to sign up and discuss policies and coverage. I'm licensed in both, but have focused on the P&C only thus far, so I'm not too versed on methods of L&H agents for marketing. Anyway, if P&C took the same approach one possibility could be apartment communities. One thing I plan on doing to market personal lines in 2008 is make a bigger presence of myself and agency within the local apartment communities. I'm scheduling appointments to meet with the property managers to discuss to possibilty and benefits it would bring for their renters. Businesses are always looking for an added value service, how much more value can you get to make sure you renters are aware of protection for their personal property. It appears to be a win-win situation, renters have protection incase of a loss and property managers can entice new renters with such value/concern. So, if you are aware of other locations this would work let me know. Also, if this is something someone has tried before PLEASE let me know how involved this can be/get, since I haven't had the pleasure of experiencing such.

 

[lisar1208]

I have a question for those who sell P&C starting off do you suggest working the current book (captive) to begin or start with cold calling?

 

[insuremojo]

I have a question for those who sell P&C starting off do you suggest working the current book (captive) to begin or start with cold calling?

Those just starting to work p&c need to work as many different avenues as possible to get the ball rolling.

Work the current book and cross sell auto and home.

Cold calling is a good way to get started.

Walking and talking at mortgage companies and auto dealerships could lead to some nice business.

Team up with a health & life agent to sell auto & home to their clients.

If you sell health & life cross sell them auto and home.

 

[lanepro]

Those just starting to work p&c need to work as many different avenues as possible to get the ball rolling.

Work the current book and cross sell auto and home.

Cold calling is a good way to get started.

Walking and talking at mortgage companies and auto dealerships could lead to some nice business.

Team up with a health & life agent to sell auto & home to their clients.

If you sell health & life cross sell them auto and home.

I agree, when starting new cross selling is a huge benefit. It's not always easy but at least you have a reason to talk to them. More and more people just completely shutdown a cold call.

Another great avenue is networking. Networking is huge for an insurance agent. The more people know you the more opportunities you have to get your name thrown out there when somebody is talking to their friends or co-workers about insurance.

 

[djs]

Just curious, if you are just starting, how are you going to work the current book and cross sell? If you have a current book, you obviously are not just starting.

Dan