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How to Put L&H Insurance in the P&C Agency - Part 3 of 3

Author: Dick Hartzen

Many insurance agencies have found it easy to increase revenue and services offered by adding life and health insurance to the agency portfolio. Numerous prospects already in the agency client list have been overlooked for many years. This short series of articles shows you how you can improve retention and the agency's bottom line. The topic for Part 3 revolves around cross selling.

One outstanding motivational speaker would mention that the turnover in insurance agents is very high. When a new agent enters the profession, he or she is greeted with immediate success. Earned commissions start flowing in. A problem arises after a month or two.

There are no new people to show the product and continue earning commissions.

This problem is not a difficult one if the agency is continually trying to find future prospects. Every telephone call that comes into the agency is an easy way to minimize this situation.

General calls:

  • When a insured calls in for any question on their home insurance, ask “While I have you on the phone, I would like to update our agency records. We know who you have your homeowner’s policy with, but our records don’t show where your --- (mortgage protection plan) --- (disability mortgage coverage) is. To update our records, who writes those needed items?”

  • When an insured calls the agency to report a workers compensation  claim, ask “We will report this work related claim immediately. Our records don’t show where you have the non-work related disability coverage (disability income). Who covers the problem that occurs when an employee has a heart attack, cancer or other illness that interrupts their work.”)

  • When an owner (sole proprietor) calls for anything general, ask “We insured your property and liability, but our records don’t show who covers the loss in value of your business should death or disability occur. Which insurer writes this needed coverage?”

    It is normally realized that a forced liquidation causes:

    • Business assets including inventory to be sold at 50% of their pre-death or pre-disability values,

    • Accounts receivable to be collected at 50-60% of the debts,

    • Good will (value of the business) to be worthless,

    • Employees that may be required to reorganize the business are concerned about their security and ability of the firm to continue,

    • Death taxes may enter the picture! American Jurisprudence mandates that the death of a sole proprietor closes the business immediately for valuation purposes,

    • Creditors are concerned and want payment COD.

Proper insurance planning can avoid these problems.

Another problem may arise! If the business is to be passed to a son or daughter, will the other family members be shut out?

  • When a partner of a firm calls, ask “We have records of the insurance on your business, but want to update our files. What plans have been made to continue the business should you or your partner (or any of your partners) die or becomes disabled?

  • If the caller is a member of a corporation, ask “Our records do not show where the insurance is in the event of the death or disability of a stockholder. Surviving stockholders are required to pay dividends if any while the deceased’s family needs the income. Ugly fights often arise. Where does your firm carry this coverage?”

  • If the caller has a “key employee”, ask “Our records show that your loss of income insurance is covered, but not the loss of income caused by the death or disability of your needed employee ______________(---Joe---Mary---). Should one of these occur,  you would be faced with a financial loss involving:

    • Loss of clients and the income they provided,

    • Costs to find a replacement,

    • Losses until a proper replacement is found.

This is easily solved with correct insurance. Do you have this in effect currently?

In conclusion, every incoming call is asked a question. Receiving 20 incoming calls a day may result in 4-5 future presentations. 

Part 1  Part 2 

Copyright 2010 by Richard I Hartzen. Used with permission.


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