Seeking advice from health & P&C agents

Posted: Tue Oct 30, 2007 06:01 am Post Subject:

Hi ovaleagent,

Its understandable that a life broker might just start wondering why it is not the same for all the health brokers to distribute life products as well. But at the same time we must understand the extensive training thats inevitable for a life agent ( that necessitates analyzing & comprehending all the features associated with a variety of life products). Don't you think its rather easier for a whole-life broker to adapt to the new selling concepts associated with the UL or VL, than a health agent !
coreagentSuby

Posted: Tue Oct 30, 2007 06:16 am Post Subject: Lets move with the time..

Lets move with the time man!
I truly believe, that for the last decade we haven't been consistent with the quality of databases (fresh prospects) for life products as we have been with the contemporary health products. If we look upon the facts, I feel its quite evident that different life products are getting developed to target the masses (out of which almost 60% would comprise of the existing users whose policies are either headed towards a lapse or would like to switch).

And I have reasons to believe that there have not been enough effort from our side to come up with good product innovations or say an unorthodox premium structure, which has slackened the volume of sales to some extent & is showing signs of stagnation for the scope of certain life products.

Lack of initial response towards a newly designed commercial product would eventually result in lesser investment towards its promotions, & thats what has happened in the recent times.

Regards,
AlleyRothrick

Posted: Tue Oct 30, 2007 06:57 am Post Subject: Lacking..

Dear friends,

At one point I also got struck while I was going through your posts.

Lack of product/marketing support.

Posted: Tue Oct 30, 2007 12:43 pm Post Subject: Selling Life Insurance

If you are starting a brand new independent agency, you had better put your life insurance selling shoes on.
Commissions on auto and home policies can range from 12% to 15% of the term premium. So that means if an agent sells a $600 annual homeowners' policy - he makes approximately $75-$80 in commissions.
It takes a long time to build a block of business that will generate any amount of significant income to the agency.
Now, let's look at life insurance - some life insurance contracts may pay as high as 100% commission. So, if the agent sells a $600 life insurance policy, he makes $600 in commissions. Life insurance generates the income while the P&C side of the agency is being built.
As you have previously mentioned, an agent may not have the time available to study the various life insurance products, but if that agent would just pick one or two products and focus, he/she could do it.
I think a lot of independent agents want to offer everything to everyone, but to do that successfully would take many agents in the office and in the field.
So, the time element and the lack of proper knowledge would be a key factor as to why independent agents don't sell much life insurance.
As far as the health insurance side of things, people actually shop for health insurance, so leads are not a problem. Let's face it, the average American is lazy, so why not work in an area where the prospects are in great supply?

Posted: Tue Oct 30, 2007 07:59 pm Post Subject:

I do appreciate all feedback but the only person who expressed reasons were Insurance Maze.

I am trying to create a program that will work and am seeking input and advice from this community to make sure my logic is right.

We have an office of 45+ employees so the support and resources are not a problem.

The idea is as follows;

When a health/P&C agent calls in with potential client he/she will have our “prospective client form” to turn in (helps us shop for the client and get an accurate underwriting quote). We would only initially contract the agent or agency with 3 of our most competitive companies (mind you are all A or A+ rated)

Once we receive that we have a 20 minute to 12hr max turnaround time to get the quote/illustration/forms/materials e-mailed/fax/mailed direct to the agent to close the sale.

Once the application is filled out the apps are either faxed/e-mailed/or use of our return envelopes to get it back to our office.

It is then scrubbed by our new business department for mistakes/missing info on the app that we all know cause headaches/problems in the insurance offices.

It is then assigned a licensed case manager that will order any medical exam that is needed, and basically be in charge of following it through the underwriting process until it's issued. (They basically does all the busy/follow up work that we as agents either don't do or hate doing). The case manager even calls the clients on your behalf one time per week to give status to the client so there is a consistent communication stream.

Once the policy has been issued if there are delivery requirements the case manager communicates with the writing agent to get them in so the policy can be placed in force.

Because were such a large life broker and have the support and relationships with all the big companies we can offer our agents 95-100% contracts on life business but more importantly if you read through the lines: we offer a full proof system for the average joe agent who doesn't have the time or desire to do all the busy work involved with getting a policy issued. The idea is that there is SO MUCH low hanging fruit out there, but no step stool to confidently pick for the reaping. We are that step stool.

A secondary benefit for both health/p&c is the increase in retention it will create as you would be able to better service new and existing clients.

Now with that said: What are the arguments, problems, objections would you imagine I would hear from health/pc agent and agency managers. Or are all of you ready to come on board when it's released? 

I've never done health or P&C and that is why I am seeking advice from you experts. Again, thank you so much for the feedback. It is very much appreciated.