Question for Property and Casualty Insurance Agents
Posted: Fri May 26, 2006 8:11 pm
Here is a hypothetical question.
Suppose there was a sales lead company that was offering completed commercial property insurance applications for sale. Here is the deal:
They come to you with a completed application for an account. The account is various kinds of commercial real estate and the total annual premium is about $100,000 -- commission of about $12,000. You are told what kinds of properties are in the account, and the zip codes where they are located. The application contains everything you will need to quote the account, including all the required information, pictures, documents, loss runs, etc.,
All you really need to do is to put your cover letter on it and submit it to the carrier of your choice.
You can buy this completed application, for submission to a carrier of your choice, for about $1,000. If you buy the package for submission to a particular carrier, you will be the only agent permitted to submit that application to that carrier.
If you make the sale, you own the account, including any additional business that may come from it that was not included in the original application.
In short, you get a shot at a $12,000 commission account for $1,000 - with all the work of finding the account and collecting the data already done for you.
In truth, that is probably less than you would spend if you spent your own labor to track down the account, try to get an appointment, and collect the information.
If this was available, would you buy it? The numbers are samples, the accounts could range from $10,000 in annual premium to about one million. Assume whatever range of premium seems right for you.
Questions and comments are invited. Thanks.
Suppose there was a sales lead company that was offering completed commercial property insurance applications for sale. Here is the deal:
They come to you with a completed application for an account. The account is various kinds of commercial real estate and the total annual premium is about $100,000 -- commission of about $12,000. You are told what kinds of properties are in the account, and the zip codes where they are located. The application contains everything you will need to quote the account, including all the required information, pictures, documents, loss runs, etc.,
All you really need to do is to put your cover letter on it and submit it to the carrier of your choice.
You can buy this completed application, for submission to a carrier of your choice, for about $1,000. If you buy the package for submission to a particular carrier, you will be the only agent permitted to submit that application to that carrier.
If you make the sale, you own the account, including any additional business that may come from it that was not included in the original application.
In short, you get a shot at a $12,000 commission account for $1,000 - with all the work of finding the account and collecting the data already done for you.
In truth, that is probably less than you would spend if you spent your own labor to track down the account, try to get an appointment, and collect the information.
If this was available, would you buy it? The numbers are samples, the accounts could range from $10,000 in annual premium to about one million. Assume whatever range of premium seems right for you.
Questions and comments are invited. Thanks.