Mutual back scratching

[Survivor]

Another agent here turned me on to a contract that my company has that I believe would help me a lot. I talked to my boss about it today, and it seems like a decent program.

Basically, they have a contract whereby I can go to an independent broker and ask to access his book of business with lines that he doesn't sell in exchange for a cut of the commissions. I really want to move in on some of the major medical brokers with some big groups in place. I'd also like to go after the P&C fellas as a lot of them do commercial policies.

Do any of you have any experience in dealing with this type of networking?
What's the best way to approach these guys?

 

[gradyinsurance]

I've often wondered about that myself. Across the street from me is a P&C only broker. He doesn't sell, or even have a license for that matter, Life and Health products. I've known them for years, and am planning on pitching that exact same deal at them sometime next week. Don't know how receptive they will be, though.

If you can get in on something like that, and provided their cut of the commissions is "reasonable" go for it.

Dave

 

[JRoot]

FYI, an agent/broker with just a P&C license can sell health insurance.

The only pitch you'll have is to cross sell life/DI/LTC and you need to tell the owner whats in it for him AND his clients. Just as you work so hard for your clients and are protective over them, they are the same. In P&C it's all about retaining clients and getting those renewal commissions, so they won't open up unless they completely trust you and your work.

When you go after P&C agencies, demonstrate your knowledge. Don't say you want to sell life insurance to their clients.

Ask them if they've offered business succession planning to their clients. ie. What they will do with the business when they retire, die, become disabled etc. A buy-sell agreement will arrange for the sale of the business upon a triggering effect (funded by life or DI).

Are they concerned with losing a key-employee (partner, top sales guy etc.)? A life policy will keep the business running smoothly, assure creditors a smooth transition, cover the expense of finding a suitable replacement, protect profits etc.

Are your clients worried about retaining employees? Offering group health, dental, vision, life, DI, LTC or even supplemental plans will give them peace of mind.

Demonstrate what you can do for their clients first, get their trust. Then talk about what's in it for them. Well, that's what I do at least.

 

[Survivor]

Demonstrate what you can do for their clients first, get their trust. Then talk about what's in it for them. Well, that's what I do at least.

I like that approach. I've been taught that in any type of sales pitch, you should calm the likely objections in the initial speech so you don't have to deal with them later. It seems like this would do that.

Now, what would be a reasonable cut?

Let's say I go to a P&C agency with 1000 customers on their book and I want provide enough incentive for them to open their book to me for cross selling. What cut do I offer?

 

[gradyinsurance]

FYI, an agent/broker with just a P&C license can sell health insurance.

In your state that may very well be true, but to the best of my knowledge, in NC, you have to have a Life, Accident, and Health license to sell Health products.

Dave

 

[Survivor]

In your state that may very well be true, but to the best of my knowledge, in NC, you have to have a Life, Accident, and Health license to sell Health products.

Dave

Same in Georgia.

 

[JRoot]

In your state that may very well be true, but to the best of my knowledge, in NC, you have to have a Life, Accident, and Health license to sell Health products.

Dave

Yea, I should of specified in California this is how its set up.


Survivor,

I would let the p/c owner offer the split and go from there.

 

[djs]

Yea, I should of specified in California this is how its set up.


Survivor,

I would let the p/c owner offer the split and go from there.

Hmm, are you sure about this? I would have figured that I needed my health license to sell health insurance in California. I know selling HMO plans is different, but I never knew my P&C license is what allowed me to sell health insurance, not my health license. Since I have them both, I've never even thought about it.

Dan

P.S. Good luck in getting any P&C agents to open their book of business to any agent. In many cases, this would violate an 'understood' confidentiality agreement with the clients. Since P&C agents thrive on renewals, they are very protective of their clients. Now, that's not to say they won't refer business to you, they probably will, if the need comes up.

 

[CHUMPS FROM OXFORD]

Allstate and Nationwide have similar setups.

 

[Crabcake Johnny]

I have become friends with Nationwide owner from the chamber of commerce. He told me it would violate his contract for me to contact his clients for health insurance. So we talked a little more and he checked into him sending a mailer to all of his current clients about health insurance - got back to me and said that was also not authorized. He's apparently not allowed to discuss any insurance product that he's not authorized to sell - contract violation.