A Virtual P&C Agency? What Are Your Thoughts?

[TLPCFLORIDA]

I have seen the surge in companies such as Nationwide, Progressive and Geico going great guns into the Call Center Mentality. One sales agent writing 50 States Auto, Home & Life.

Has it been done outside of these large companies? If you have the licenses in this many states for P&C and Life with the necessary experience could you take it Independent Agency? How would you get appointed across state lines?

I would like to use my CPCU and all these licenses to the best advantage and have very little home town contacts. Cold Calling and the telephone are great contacts points for me personally.

Any thoughts would be appreicated.

 

[robb01]

I would be curious to know this as well. I assume you'd need to get licensed in each state (which would be a pain). But one thing you could do is just sell off leads from states you weren't licensed in.

 

[BlockO]

robb1,
as I have learned very recently....
getting the non-res license is the EASY part! (go through the NIPR and it's just a matter of giving them money, and it's a done deal)

getting your carriers to activate you in those states, and finding new carriers in those states is the real pain!

"But one thing you could do is just sell off leads from states you weren't licensed in" ... very true, and some people on here make a lot of money doing just that. one heads up... if your going to go that route, make sure you revise your site's privacy policy accordingly.

 

[robb01]

robb1,
as I have learned very recently....
getting the non-res license is the EASY part! (go through the NIPR and it's just a matter of giving them money, and it's a done deal)

getting your carriers to activate you in those states, and finding new carriers in those states is the real pain!

"But one thing you could do is just sell off leads from states you weren't licensed in" ... very true, and some people on here make a lot of money doing just that. one heads up... if your going to go that route, make sure you revise your site's privacy policy accordingly.

Have you really found that to be an issue, with most carriers? I've only done it a couple times, but as long as the carrier is licensed in a state, they never seem to mind adding that state on for me if im licensed there.

 

[iiinycboi]

how would you validate the info and confirm the identity of the client? is there a system that does the background check and validates the person is who he say he is? also do you carriers allow email/internet sales?

 

[BlockO]

it may not be that big of a deal at all with some carriers. I'm only speaking from my experience with two carriers. I don't have but a few carriers, and my other carriers don't sell in my non-res states.

one of my carriers told me the process can take up to two weeks, and that's almost how long it took before I was able to quote and sell with them (and it may have taken longer had I not continually pestered them about it).

another carrier is planning a major upgrade in January for their out dated computer system (the site you go to do quotes, review/change policies etc). when I asked to be activated in the states that I and they are both licensed in, my regional sales mgr. told me "let's wait until january when we have the new system in place".

I didn't like that answer, but I guess that's the way it is for whatever reason. maybe it's a compatibility issue.
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iiincyboi,
fake leads are part of it. if you're generating the leads yourself, the only way of knowing is to call/email them. I get a fake quote once in a while. I once got a request from a Mr. Iva Biggin.

if you're buying the leads, that's why it's important to buy from a company that doesn't limit fake lead credits.

not sure I understand your 2nd question. of course carriers allow internet sales (they'd be foolish not to). if you're asking about binding coverage, then the answer is NO. no one can go on an agent's website and buy & bind coverage automatically without the agent doing anything (the only way to do that is directly with a company).

 

[iiinycboi]

Yes, I was referring to binding coverage. At one point or another do you have to call or email to verify identity or is it allowed to bind based on the info they give you then you send them quote they send you signed apps and payment you send them binder and issue policy.

Just wondering on how extensive or minimal the communication would need to be.

 

[djs]

You would have to ask yourself if you really want this type of business. What value to you bring if there isn't any touch points?

Now, I'll admit, I've issued policies with never actually talking to the client. I've done auto policies this way, where it was setup through the dealer and I've done home policies setup through the mortgage broker. I even did a flood policy last week without talking to the client.

In all cases though, I knew the state of the property I was binding for the risk. Without that knowledge, what value do I bring the carrier?

Binding risks without communicating is looking for a loss ratio that is astronomical. Heck, even esurance calls you when you buy a policy. It's the last step in CLICK-QUOTE-BUY-ring, phone verication- RISK BOUND.

Dan

 

[BlockO]

I've never made a sale without at least speaking to the client on the phone. I think it would be too tedious to do everything email, with all the underwriting questions. besides,I wouldn't want to get someone's credit card info over an email. I fear getting hacked!

as far as addressing insurance fraud, one thing you can do is ask the customer to send you digital photos of the vehicles that include comp & collision, including one back photo in which a readable license plate is shown.

it's not fool-proof, but a con artist would be more likely to move on to an easier target.

 

[Bertolinoins]

Do you understand how much money those companies spend to make the phone ring so their call center agents can make 50 sales a month? How do you plan on doing that?