Combating Agencies that Give "teaser" Quotes....

[LDG]

I own several agencies in Florida and we are appointed with almost every significant carrier doing business in the state.

Nobody can offer better pricing that we do if quotes are "apples to apples." I feel that our closing ratio isn't higher in part because other agencies send out "teaser" quotes with high deductibles or minus replacement cost on personal property.

For instance today a customer asked why we were so much higher than another quote he got and after reviewing his quote the other agency left off replacement cost and was quoting a 5 percent hurricane deductible. I was able to make the sale because he contacted me to discuss the quote and I pointed out the differences.

But we don't generally don't get to have this conversation because many quotes are for internet customers or referred by a lender or realtor and we never speak to them.

What is your agency doing to combat this issue?

 

[FL P&C Broker]

I wouldn't even call it teaser rates. Those agents will write up the policy that way as long as no questions are asked. The insured doesn't know better.

It has been an ever evolving problem since the market softened up and more companies have entered the state. There is an increasing number of agencies and start up shops with newbie agents. The franchises and clusters are some of the biggest offenders.

I started sending out emails with option 1 and option 2 while explaining the value of the more expensive option.

 

[LDG]

I wouldn't even call it teaser rates. Those agents will write up the policy that way as long as no questions are asked. The insured doesn't know better.

It has been an ever evolving problem since the market softened up and more companies have entered the state. There is an increasing number of agencies and start up shops with newbie agents. The franchises and clusters are some of the biggest offenders.

I started sending out emails with option 1 and option 2 while explaining the value of the more expensive option.

That is the exact remedy my sons and I discussed tonight.

So do you send out a quote from 1 carrier and give option 1 and 2?

I think if we continued to send out the top 3 quotes and give 2 options for each our customers heads would be spinning.

 

[FL P&C Broker]

I wouldn't even call it teaser rates. Those agents will write up the policy that way as long as no questions are asked. The insured doesn't know better.

It has been an ever evolving problem since the market softened up and more companies have entered the state. There is an increasing number of agencies and start up shops with newbie agents. The franchises and clusters are some of the biggest offenders.

I started sending out emails with option 1 and option 2 while explaining the value of the more expensive option.

It is a case by case basis for me, but I agree anything more than 3 options is too many. If one of my go to carries is the price leader then I will send option 1 and option 2 for that company.

I will also include a summary sheet from our rating software with a quick rate indication of every company.

I have taught most of my realtors and lenders that there clients need to contact me for a firm quote. If a lender needs a number for a DTI calculation I will run a quick quote, but I tell them it is accurate with a couple $100.

If you are in north florida I can only imagine that it is even tougher. I heard everybody is buying rate there and the newer companies will appoint any agent with a pulse and they are selling a $500 watered down policy with a company less than 3 years old.

 

[LDG]

It is a case by case basis for me, but I agree anything more than 3 options is too many. If one of my go to carries is the price leader then I will send option 1 and option 2 for that company.

I will also include a summary sheet from our rating software with a quick rate indication of every company.

I have taught most of my realtors and lenders that there clients need to contact me for a firm quote. If a lender needs a number for a DTI calculation I will run a quick quote, but I tell them it is accurate with a couple $100.

If you are in north florida I can only imagine that it is even tougher. I heard everybody is buying rate there and the newer companies will appoint any agent with a pulse and they are selling a $500 watered down policy with a company less than 3 years old.

I have an agency in Central Florida and one in Jacksonville and we have issues with other agencies in both areas.

Below is the current quoting template for my Central Florida agency. My Jacksonville template has the carriers that are more competitive in that area.. We don't send out quotes from all of those carriers just the top 3. Any suggested tweaks?


Dear Mr. and Mrs.

Thank you for the opportunity to quote your home insurance needs!

I have attached 3 quotes with several “A” rated carriers that offer extensive coverage options and exceptional financial stability all while maintaining very competitive premiums.

*All pricing is provisional and depends on the information contained in the 4pt inspection and the wind mitigation inspection. Please forward the 4pt inspection and wind mitigation inspection as soon as they are available for more accurate pricing.

Tower Hill is offering a price of $
American Integrity is offering a price of $
Olympus insurance is offering a price of $
Security First is offering a price of $
Universal P&C is offering a price of $
Anchor Insurance is offering a price of $
Edison Insurance is offering a price of $
Florida Peninsula is offering a price of $

*While calculating these quotes, we made the assumption that a wind mitigation inspection will show level C nail spacing and clips or better. Please forward the wind mitigation inspection when it's available so we can update pricing.

After quoting your home with several great carriers I would recommend ( ) for your homeowners insurance needs. ( ) offers extensive coverage options, fantastic customer service and exceptional financial stability all while offering a very competitive rate.

Also, your rate may decrease even further if you have a

Monitored burglar/fire alarm
Excellent credit
If you are retired
Wind mitigation inspection
So please let us know if you qualify for any of these savings!

This quote may not include coverages such as animal liability, water backup/sewage overflow or scheduled personal property. These can be added for a nominal price so let us know if you are interested in discussing these coverages.

When you are ready to bind coverage please have your lender forward a "request for insurance" when a firm closing date is set. We can then underwrite the application via telephone and forward the binder and invoice to your lender.

Congratulations on your new home! We look forward to hearing from you soon.

Thoughts?

 

[todd02]

More choices will hurt closing ratios. Consumers don't want Choices. Yet they tell you they do. Fact find and recommend.