CPA Getting Ready to Start in NC Senior Market

[condosmart]

I've been a CPA for 30 years and recently decided to try something new. (not your typical CPA!). I'm in the process of getting my Life/Health/Medicare/LTC license - I thought it would be a good fit. I plan to take the state exams in the next few weeks. I think the Senior Market has the most potential with all the baby boomers retiring.
Since I'm just starting out in insurance, I have many questions and need some advice:
1 - I'm in North Carolina (Charlotte area). It appears that this area is flooded with insurance agencies. I'm open to relocation, but would prefer to stay in NC because of my licenses (CPA, Real Estate Broker, Insurance). What are the best areas in NC for seniors? It appears that for selling P&C, you're better off in a large city, but for senior insurance???

2 - Once I get the licenses, is it possible to partner up with an existing agency for on the job training for awhile? I plan to eventually become independent - will this be a problem when its time for me to leave?

3 - How hard is it to market to seniors? Do they normally stay with the same agency for 50 years or are they open to change? Is cost the main driving force or is it more the relationships?

4 - What's the best way to market to them? Internet, direct mail, free educational seminars, leads groups, chambers, etc???

5 - Within the senior market, can anyone recommend a niche? I'm trying to narrowly define my agency - so I can specialize in something that's important to them and stand out from the crowd. I thought maybe target the hispanic market. Another idea was to move to Pinehurst and target all the golfers...

What do you think? Please don't sugarcoat it - I'm originally from NY - I can take it.

Thank you!

 

[Newby]

My wife is a CPA that I drug kicking and screaming into our insurance agency several years back. Our focus has been on the senior market for over 16-years.

Read some of the open pages of my website at http://www.fexcontracting.com and a lot of your questions are addressed there.

You are always welcome to call us. It's confusing at first but your accounting background is a huge asset.

 

[condosmart]

Hi Newby!

Your website is wonderful-lots of good information there. I am thinking part-time independent agency to start. Can you email me (gailpiz7-at-aol.com) and provide me more information on the services you provide? I'm interested in the process and the cost of the program.

Have you found the senior market to be lucrative?

Thank you!

Gail P

 

[pbbaseball]

1 - I'm in North Carolina (Charlotte area). It appears that this area is flooded with insurance agencies. I'm open to relocation, but would prefer to stay in NC because of my licenses (CPA, Real Estate Broker, Insurance). What are the best areas in NC for seniors? It appears that for selling P&C, you're better off in a large city, but for senior insurance???

Medicare plans can be sold anywhere. The important thing in my opinion is to look at the counties you are wanting to sell in (or zip codes), and look at the medicare advantage penetration. Guys that put out a lot of med supp mailers in a market that is 45% MA penetration have to spend a little more marketing than in a market that's only 7% MA penetration.

2 - Once I get the licenses, is it possible to partner up with an existing agency for on the job training for awhile? I plan to eventually become independent - will this be a problem when its time for me to leave?

That's always up to the agency that you partner with, but I'd be surprised if many people had problems with it.

3 - How hard is it to market to seniors? Do they normally stay with the same agency for 50 years or are they open to change? Is cost the main driving force or is it more the relationships?

Super simple to market to them. They are the dying breed that responds to direct mail and aren't on the DNC list for phone call marketing. I think most are very open to change, especially until you get to the 150k + income range. Cost is most definitely the main driving force in my 15yrs of experience. I've sold more expensive plans, but for med supps, the lowest price wins, and for MAPD, the zero premium plans with the lowest copays usually win.

4 - What's the best way to market to them? Internet, direct mail, free educational seminars, leads groups, chambers, etc???

I get a lot of leads from my website, so the younger ones are on the internet, and continue to grow over the years (although I think 70% of internet leads are fake info). I think you can't go wrong with direct mail, much cheaper to pay the post office to prospect than it is to knock doors, etc. seminars work, but have lots of rules, especially for MAPD. BNI, Chambers, any of the networking/referral markets are good for any kind of sales. Happy customers will give you more referrals than anyone though when you save them money.

5 - Within the senior market, can anyone recommend a niche? I'm trying to narrowly define my agency - so I can specialize in something that's important to them and stand out from the crowd. I thought maybe target the hispanic market. Another idea was to move to Pinehurst and target all the golfers...

Target the market that just had premium increases. Mutual of Omaha just took a 20% increase in NC this yr, and they are a big player in the med supp market, so doing your advertising based on stuff like that helps. AARP always has rate increases in January here, and BCBS always in June, so knowing stuff like that helps when you are doing mail drops. York County just had Universal exit the market 3 weeks ago leaving 600+ without coverage, so that's where I'm targeting my drops now.

What do you think? Please don't sugarcoat it - I'm originally from NY - I can take it.

Thank you!

Feel free to PM or ask other questions on here. Like Newby, I've been doing this since 1998, have contracts on MedicareSupplementContracting.com as well as lead pieces, my personal site at WilmingtonInsuranceQuotes.com has lots of other NC medicare info. With agents in Fort Mill, Asheboro, Greensboro, Asheville, and all over NC, I know the market pretty well for NC and SC.

 

[condosmart]

Thanks for taking the time to answer all my questions. You've been very helpful. I currently live in Davidson, NC (Lake Norman) area and I'm thinking about relocating to somewhere near the Pinehurst area. Maybe Fayetteville/Sanford/Pinehurst. My husband is a golfer, so it works for him. Pinehurst with the average age over 55 works for me.
Thanks again!
Gail

 

[pbbaseball]

all great areas, good luck with your move!

 

[midwestbroker]

3 - How hard is it to market to seniors? Do they normally stay with the same agency for 50 years or are they open to change? Is cost the main driving force or is it more the relationships?

With Medicare supps seniors tend to keep their plans for a number of years (5+) before considering changing. Look at auto insurance, if people changed due to pricing, people would be changing every 6 months or so, and that is not the case.

The 2 main factors I have seen are:
Price (premium increases)
Lack of service (agent does not follow up or keep in touch)

Keeping in touch with your book of business is going to be key to keeping them as clients. Being you are a CPA and could help them each year with their taxes (even if it is just to answer a question) is something you will have over other agents.

Just my $.02, after taxes $19.92. That was a tax joke just for you. Bad, I know...