Accessing High End Customers

[SmartWorker]

Looking for some advice on accessing high end customers.

I'm about a year into my role as a P&C producer and I've built up a decent network of people who are sending me home and auto insurance leads. The initial business I've written is generating cross-sells and referrals, so I feel good about the base of my business and the income it generates.

One of my prospecting/networking activities has been participating in a group of real estate professionals. They're an ambitious bunch which I like to be around. I find experienced insurance agents tend to trend toward fat and happy of their renewal business, so getting some fire from people who live and die by each sale keeps me awake.

At a recent event, an agent from Georgia came to speak about her success accessing "luxury markets" in real estate sales. Obviously there's a wide gulf of difference between the commission motivation of a real estate deal versus insurance, especially as it relates to the tail of service you create with any new business. Part of me fears I could be chasing PITA business that I'll be begging to get rid of later, but that's the risk eh?

Has anyone out there been successful working high end clients for P&C. I have partners in life and financial planning that could round out their needs, but I'd like to be prospecting, landing, and sharing those clients with my network. I'm already prospecting in various ways, but looking for some proven ideas that might be unique to this market segment.

Thanks!

 

[BigSteve]

Do you prospect for commercial? Try connecting with real estate investors. This where I am having great success, you write the 20k-100k+ package, then once you solve those headaches, you can get the 5million dollar house, the 10-20+ vehicles, the boat, vacation home, and then their neighbors.

 

[leroman]

If you have already connections with financial planners,CPA's and attorneys, you are all set to get into the high end market,The main problem with those professionals usually is that they tend to be overprotective of their clients and is hard to crack in if they don't know you beforehand. But if you are already in their good graces and they trust you, you should have a good start. Hope it helps.

 

[todd02]

It's all about risk/reward management. I prefer to target middle/upper class vs wealthy. More business means less attrition on rate increases since its spread between more customers. You have to write a heck of a lot of business but when you take rate you're able to keep up or surpass attrition and still grow. And in my view it's easier service to deal with someone making 60-100k vs 1 Mm. The wealthy expect your cell phone and answer them any time. I still have a guy calling me on a Sunday and he's filed more claims than anyone.

 

[Rick Deckard]

It's all about risk/reward management. I prefer to target middle/upper class vs wealthy. More business means less attrition on rate increases since its spread between more customers. You have to write a heck of a lot of business but when you take rate you're able to keep up or surpass attrition and still grow. And in my view it's easier service to deal with someone making 60-100k vs 1 Mm. The wealthy expect your cell phone and answer them any time. I still have a guy calling me on a Sunday and he's filed more claims than anyone.

Hi Todd, you have some quality posts and I think you are a success, you should be applauded. That said, I have seen you post a couple times about being more comfy in the lower to middle class section of town.

I wholeheartedly disagree but I want to stress that I understand why you say these things.

You are more comfortable in a German Festhaus full of Bud Light and Heineken drinkers vs I would prefer to be in a pub with just a couple handfuls of refined craft beer drinkers who don't mind paying a little more for a better product and possible experience.

Keep Rocking Todd!

 

[todd02]

Hi Todd, you have some quality posts and I think you are a success, you should be applauded. That said, I have seen you post a couple times about being more comfy in the lower to middle class section of town.

I wholeheartedly disagree but I want to stress that I understand why you say these things.

You are more comfortable in a German Festhaus full of Bud Light and Heineken drinkers vs I would prefer to be in a pub with just a couple handfuls of refined craft beer drinkers who don't mind paying a little more for a better product and possible experience.

Keep Rocking Todd!

No it's called trading a trend. Hundreds of billions of dollars of advertising has caused consumers to view insurance as a commodity vs a product of value or different contracts. We can educate till we are blue in the face and yes I love those "preferred" clients over any other. (My software is MOST VALUABLE PROSPECT) but the point of my post was make sure you have a well rounded book. Insurance rates are cyclical. Market share is won and lost. The more spread out you are the better. It just so happens the middle class is where the battle rages. More clients you have there the better your retention ratio. To low of credit clients and to high of preferred can cause major fluctuations in retention. At least in my area where a hailstorm can wipe out carriers causing 25%+ rate increases.

Was just food for thought. I'm a country club, then a breaking Benjamin concert kinda guy btw.

 

[Rick Deckard]

No it's called trading a trend. Hundreds of billions of dollars of advertising has caused consumers to view insurance as a commodity vs a product of value or different contracts. We can educate till we are blue in the face and yes I love those "preferred" clients over any other. (My software is MOST VALUABLE PROSPECT) but the point of my post was make sure you have a well rounded book. Insurance rates are cyclical. Market share is won and lost. The more spread out you are the better. It just so happens the middle class is where the battle rages. More clients you have there the better your retention ratio. To low of credit clients and to high of preferred can cause major fluctuations in retention. At least in my area where a hailstorm can wipe out carriers causing 25%+ rate increases.

Was just food for thought. I'm a country club, then a breaking Benjamin concert kinda guy btw.

Outstanding post, lots of good tips. Let me go ahead and enhance this workbook sheet.

5 Revenue streams is what my goal or thoughts are.

Monthly goals

1. Higher Value Homeowners: $25k a month in premium

2. Mortgage Lenders: $25k a month in premium

3. Middle Class/Upper Middle "X-Dates": $25k a month in premium

4. Small Business Owners: BOP and the like: $25k a month in premium

5a. Cross Sell to new homeowners: Gravy
5b. Truckers and vehicle lines/fleets-Commercial

$100k a month in new business.

 

[todd02]

Outstanding post, lots of good tips. Let me go ahead and enhance this workbook sheet.

5 Revenue streams is what my goal or thoughts are.

Monthly goals

1. Higher Value Homeowners: $25k a month in premium

2. Mortgage Lenders: $25k a month in premium

3. Middle Class/Upper Middle "X-Dates": $25k a month in premium

4. Small Business Owners: BOP and the like: $25k a month in premium

5a. Cross Sell to new homeowners: Gravy
5b. Truckers and vehicle lines/fleets-Commercial

$100k a month in new business.

Good luck!

Just remember you can control your active marketing, not passive. Meaning referrals are "gravy" and unless you have a well oiled referral machine with steady quotes I wouldn't count on that just yet.

 

[TwoLabs]

Agreed with Todd. Some of my biggest headaches are my high net worth clients. I'll get a text on a Sunday afternoon, "Jeff! Why is my auto insurance so HIGH?"

Ughhhhh.

 

[insurance1822]

Todd wouldn't know about HIGH net worth clients b/c Farmers doesn't have products to suit their needs. What I will tell you is there's a limited market here from a carrier standpoint: PURE, Nationwide Private Client, ACE (who took over Chubb & Fireman's Fund.) PURE is smashing everybody now because they're new. I don't have any high net worth clients that fit this demographic.

I do have some 5MM homes w/ 5MM umbrellas & I'd rather have 5 packages at 2k each opposed to those fat ones. My goal with insurance is to basically not work anymore & when you have bigger accounts..you have to work.

When you have thousands of average Joe accounts & you got one complaining about rates or leaving? I couldn't care less..it's a drop in the bucket. When Dr. Singh is a 15k package & he's complaining (because they always know better then you...) you gotta start working.

I am 100% referral based & do about 135 policies monthly on my own (I have a full time CSR.) The people that are receptive to being told "call this guy for your insurance" are typically lower-middle class to middle class. These are the same people who I throw on EFT & they don't pay attention to their bills because....they're lower middle to middle class.

In my experience it's a MUCH easier market/demographic to corral into your book...slap em on EFT & shut em up when they complain. When I deal w/ doctors (and specifically engineers) who have higher value stuff..I want to pull my hair out.