It’s been my general experience that insurance agents are in business not for their health but to make money. Would you agree?
I often talk to agency owners who have a nice book of business but would like to increase agency income. Of course, being insurance agents, they’d like it even better if it didn’t involve much work or expenditure of money. Well, I have some suggestions on how to do that. In this and the next couple of blogs I’m going to give you three ideas on how to make more money on your existing book of business. These ideas are:
Interested? I thought so.
My first idea is to sell an umbrella to every customer. So, what??? You thought this idea was something original? I know you’ve heard this before. But let me ask you, “How many of your customers already buy an umbrella?” Thought so.
If you have 1,000 customers they all need one. Why? How much money does it take to settle a claim where your insured puts someone making $10 bucks an hour in a wheelchair for live? The short answer is $1 million dollars. $350k for the hospital. $400k in the bank at 5% to replace lost income and $250k for his lawyer (I’m being optimistic here by the way). So, where does your client get $1 million?
His umbrella of course.
Now, if you sell all your customers an umbrella (by quoting one every time, and having your staff explain the math) you will make $20,000 in commission ($135 premium x 1,00 x 15%). It’s easy. It’s 100% profit. We all know increased lines of business increase retention (what’s that worth by the way?). And you’re looking out for your customer, so you’re a better agent.
What’s stopping you?
Next time is an even easier suggestion.