Archive for December, 2010

Doing it for NOTHING?

I was recently in a seminar and the presenter was lamenting that an insured went to an attorney when he could have “done it for nothing“!   Look… you got a commission to do it.   Sometimes it is necessary to be proactive and take a stand for either your insured or for the company you represent.     The degree of conflict between the goals of an insurance company and the goals of an insured assure the existence of insurance agents FOREVER!   But, we have to add value we are getting paid for!    The insurance business is the independent agents business to give away and in many cases we are doing a great job!

If we don’t get in there an play the game then why shouldn’t the insured go to the internet.    Take a stand and resolve conflicts!   The independent agents who stay in the game as larger and larger distribution entities take over will eventually be able to hang a banner over your local sign that says; “Bring your insurance to us.. Our service doesn’t suck any worse than theirs!”

Selling Your Insurance Agency

Selling your Insurance Agency is as complicated as purchasing complex casualty coverage for a large Insured.  Trying to do it on your own is a mistake..   Why?    Because a sophisticated buyer can pick your pocket for more than my fee and you won’t even know it’s gone!

Discontinued Operations/CGL

If you discontinue the purchase of General Liability Policies due to retirement or going out of business, among other reasons, be cautious if the insured still has products in the marketplace.    Canceling the General Liability will terminate coverage for occurrences that happen in the future due to your insured’s products.

At termination you need to have your client purchase discontinued operations coverage.   The coverage is no longer even in the ISO manual, and I think I must be one of the few who still remembers how it was rated.   Insurance Agents…  Plug this potential E & O Gap by offering the coverage and documenting the offer in your insurance file!

Clients are in Denial Installment 3

Clients are in denial and unless you sell value they remain apathetic about the sale.     This Pre Loss Apathy is dangerous.     If you do not sell value and deal with it, you get Post Loss Aggression…   An E & O Claim on wheels coming right at you! Remember, No Premiium is too great AFTER the loss!

Insurance Client’s are in DENIAL! Installment 2

We, usually out of a desire to be fair to a client, offer an “apples to apples” comparison. This gives the client’s denial a chance to take the sale process completely out of your hands. The expectation for price will be set by the FIRST set of numbers someone throws out in THIS TRANSACTION! So, you ask, how can I get the client’s attention and build trust and rapport (trust and rapport, are really the same thing) and build it quickly?

1. Stay away from “apples to apples”.

2. Give your first quote the “Way I would buy the insurance for myself”.

Tell this to the client!  The way I would buy it for myself!  I can sell you a homeowners “the way I would buy it for myself” for $ 625.00. If they resist, don’t back away. You ask “Is it high?” If they resist… and look quizzically..  and say, “Well yes… My other agent gives it to me for $ 587.00.” Then ask, “Does it have all these bells and whistles?” They will not know.. “Well may we look?” You ask? This allows you to sell value and overcome price!

Raise the question!!!   WHY is your price higher!   Then you can sell value!

Think about it, if you go to the auto dealership and the salesman asks can I help you, and you tell him you want to buy a car but you don’t know what type,  do they take you to the lowest price car?     NO!!!  They take you to the highest price car and work down! By giving them the “apples to apples” “thing”, we are doing the opposite. Start at the top and sell value, not price!

Sell it with alll the bells and whistles and overcome the price objection by building trust!