Captive P&C Agents: Simple Question. What is Your Close Ratio?

vegasjones

New Member
3
Hi all,

I know this is a loaded question. But all I'm really looking for is to hear some true numbers of captive agents quote to close ratio. A lot goes into close ratio as far as agent selling ability. But I have a specific reason for asking and haven't found an answer in searching the forums.

I was a captive agent for 10 years and have now moved to a position on our product development team. As I meet with agents in the field all I get is push back about rates. We had times where we were VERY competitive, but of course took high losses. Things have changed as of late and competition is tougher than ever.

In Nevada, where I'm having the most issue with agents complaing about rates our overall close ratio is about 31% as a state. Considering we're a captive company, had a lot of turnover with tenured agents leaving being replaced with new agents, closing 3 out of every 10 quotes you give seems to be successful. Maybe not in the eyes of an independent, and I understand that. But strictly speaking from a captive point of view, this seems acceptable.

Although maybe I'm wrong.

I've been making the point to agents that 31% is actually a respectable close ratio for a captive agent and to stop using the rate as a crutch for low activity/production. At the end of the day, if we have an idea of what our close ratio is then at that points it's a numbers game. This many quotes leads to this many policies, theoretically of course.

So with that long winded explanation of why I'm looking for this information, all I'd really like to hear from all you captives out there, is what is your current P&C quote to close ratio?


 
Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

What do you define as a 'quote'?
Maybe I'm parsing words a bit, but once upon a time, I had this discussion and agents tend to view 'quotes' differently than the home office.

Agents frequently have offline rating tools that are faster to do an initial quote on, they only quote online when the offline rate appears decent. The home office never knows about the offline quoting that occurs, which drastically can affect the quote to close ratio.

This is true even in the independent world, but slightly different. For instance, with Superior Access, they like to have a certain quote to close ratio (if you want to waive fees). They do not consider price indications as a quote, just when you submit it for underwriting and a firm quote does it count. A lot of carriers work the same way. You need to keep your quote to close ratio above a certain percentage, but they only count quotes when things like MVR reports are pulled.

If you are considering fully underwritten quotes, ready for the customer to sign and pay as quotes, then 31% is horrible. You should be close to 80%. If you are counting every person you talk to that gives you some basic information and you give them a price indication, then 31% is awesome.

My guess is, you have a big mix and don't have a good feel for what constitutes a quote in this ratio.

Dan
 
Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

I'm with the largest captive and would love 31%. In actuallity we are less than 20% as of the last couple of months. You mention selling ability....with P&C it seems to all be about price. It's a hard sell in this troubled economy to convince clients to pay more.

Also, while I do agree with you that it is a numbers game. At what point did 30% become success? I wander if Walmart only sells a product to a third of the people that come through the door.
 
Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

Thanks for the replies so far.

To answer the question as to what I'm defining as a quote. I consider a quote to be someone who simply lets us give them our price for comparison to others.

We have one rating system that ALL quoting data is entered into. There are no other offline systems with our company at least, that allows the agent to quote without us knowing about it. So when I'm speaking of 31%, that is 31% of every single quote that is entered into our system. I have some agents closing 50% of everyone they talk to, I have some closing 20% of everyone they talk to, averages out to 31%. Ultimately, I'm not using the close ratio as a guage of an agent's selling ability as much as I am using it to combat the fact that our rates aren't the reason they're not successful.

As a captive company, if we can sell 3 out of every 10 quotes we give, our rates aren't the problem.

As far as why I see 30% a success is simply because of the competition out there. We aren't one of the large players, we have a great and reputable name but we don't advertise much like most of the large carriers. Wal-mart is a tough comparison to make to insurance. Wal-mart has maybe a handful of "true" competitors and out of those, they all specialize in different areas IE: electronics, groceries, clothing, etc. Where insurance companies, depending on the market may have dozens of choices for consumers to choose from and then when you throw in the online compeition without a local presence, there's even more.

Ultimately what I'm trying to get at with my agents is that as an agent with a captive company, chances are you aren't going to consistently close 40-50% of every single person who lets you quote them. But when I tell them that 30% is actually pretty good for a captive company they disagree.
 
Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

I with a captive and I'd kill for a 31% close ratio. Our rates suck right now.
 
Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

Hi all,

I know this is a loaded question. But all I'm really looking for is to hear some true numbers of captive agents quote to close ratio. A lot goes into close ratio as far as agent selling ability. But I have a specific reason for asking and haven't found an answer in searching the forums.

I was a captive agent for 10 years and have now moved to a position on our product development team. As I meet with agents in the field all I get is push back about rates. We had times where we were VERY competitive, but of course took high losses. Things have changed as of late and competition is tougher than ever.

In Nevada, where I'm having the most issue with agents complaing about rates our overall close ratio is about 31% as a state. Considering we're a captive company, had a lot of turnover with tenured agents leaving being replaced with new agents, closing 3 out of every 10 quotes you give seems to be successful. Maybe not in the eyes of an independent, and I understand that. But strictly speaking from a captive point of view, this seems acceptable.

Although maybe I'm wrong.

I've been making the point to agents that 31% is actually a respectable close ratio for a captive agent and to stop using the rate as a crutch for low activity/production. At the end of the day, if we have an idea of what our close ratio is then at that points it's a numbers game. This many quotes leads to this many policies, theoretically of course.

So with that long winded explanation of why I'm looking for this information, all I'd really like to hear from all you captives out there, is what is your current P&C quote to close ratio?

Re-read this. This is such typical home office/sales manager speak.

Activity is always good, but you're just looking for a way to point fingers at the agents versus help them identify the real reason they aren't succeeding.
 
Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

You probably need to listen to the agents a bit better.
I know when I talk to someone that certain carriers aren't a good fit, don't even rate them there.

If your agents are not bothering to quote a lot of individuals, you don't have a 31% close ratio because of the pre-filtering that occurs.

Here's what you really need to look at.... are your agents/producers quoting at least 3 different risks a day? That's 3 different prospects.... If not, then the closing ratio is somewhat meaningless. For closing ratio to be valid, you have to have a certain level of quoting per producer/agent.

I close 75% of the bonds I quote. Unfortunately, I only quote 4 a year. I can't build a business plan around those numbers. If I quoted more, my closing ratio would go down, not up.

You have a preconception of what things should look like. Talk to your agents without trying to convince them of anything. Yes, P&C is extremely price sensitive nowadays, especially if you don't have name awareness behind you. Why would someone buy your product over a less expensive product or a better known product?

In my area, I tell carriers that if they are more expensive than State Farm (for preferred risks), they are toast. Why would anyone use something more expensive and less well known? Of course, it helps that State Farm has somewhat middle of the road rates in my area overall.

Dan
 
Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

1 out of 10 is the closing Ratio. So are you happy now...
 
Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

I would agree 1 or 2 out of 10 is probably accurate. At least with what I saw on my former districts reports.

--Bryan
 
Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

i have 8 out of 10
 
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