3 Ways to Boost P/C Agency Revenues with Life Insurance Sales

When I was a regional advisor for a multiline insurance company we were always looking for ways to help agents build more profitable agencies. The most successful agents invariably had a system to promote life insurance sales. The extra revenue often covered their overhead, and sometimes more.

Why then do some property/casualty agents hesitate to seriously consider selling more life insurance?

Property/casualty agents are keenly aware of the importance of retaining clients as they build their book of business. They will sell it if asked, but often it is only an ancillary part of their practice. There is a fear among some agents that “pushing” life insurance might annoy their clients.

Yet, clients with multiple financial products purchased from an agency are statistically much more likely to remain clients. Any agency can comfortably integrate life insurance sales into its practice.

Here are three tactics that have proven to be successful:

1. Don’t be afraid to ask. Simply letting your clients know that you offer life insurance will greatly increase the likelihood of placing policies. When you meet with a commercial client include the subject as one of the topics you discuss. One agency had its customer service personnel ask clients who called in for any reason, this simple question, “Would you mind if (Tom) talked with you about life insurance some time?” More than 50 percent of the time they got a positive response. There were times, especially with personal lines, where they set up an appointment with the caller to meet later with the agent. Of course, this doesn’t always work, but you would be surprised how much insurance can be sold with this simple approach.
2. Include an evaluation of existing life insurance as part of any property/casualty review. With increased competition, the use of the new CSO mortality table, and better designs, there are opportunities to improve your client’s current life insurance program, sometimes significantly There are times when it is not in a client’s best interest to replace an old policy, but it is definitely in the client’s best interest to periodically review. Clients appreciate agents who watch out for their interests, point out problems, and help them save money. If you don’t have the expertise to do an analysis, partner with someone with more experience to lend a hand. Advanced underwriting departments of any carrier are more than happy to help, and there are brokers who will assist you in “shopping the case” among multiple companies.
3. Help clients understand that life insurance is part of risk management. When a business, especially a closely held one, loses the principal or a key employee, it can be devastating. The infusion of capital at a time like this can help the firm continue to be viable. Businesses should include life insurance as part of their risk management strategy. Additionally any of your clients who have others dependent on their income should own life insurance. For young families term insurance is incredibly inexpensive. With the death of a breadwinner many families are in deep trouble. Without that income, they can be hard pressed to maintain their lifestyle. In addition to the trauma of losing a spouse or a parent, the survivors may be forced to downsize and to move away from their neighborhood, church, children’s schools, and of course friends. At a minimum bring up the subject periodically.

People do business with agents who work side by side with them to solve problems. You have built in relationships with your clients based on good hard work. Adding a well thought out life insurance program will enhance your position as a trusted advisor, and add revenue to your bottom line.

Topics Profit Loss Agencies Property Casualty