Cross Selling Auto Insurance with FE?

[TheGodEmperor]

I've heard the more policies someone has with you, the better your persistency on average. Why not cross-sell auto insurance to your FE people if you can save them money and improve persistency? Many FE prospects aren't homeowners, but almost all of them have cars which means they're legally required to have car insurance...and if you sold them an FE policy, you have already earned their trust which can be the most difficult thing to establish before making a sale.

 

[Newby]

I've heard the more policies someone has with you, the better your persistency on average. Why not cross-sell auto insurance to your FE people if you can save them money and improve persistency? Many FE prospects aren't homeowners, but almost all of them have cars which means they're legally required to have car insurance...and if you sold them an FE policy, you have already earned their trust which can be the most difficult thing to establish before making a sale.

If you are already licensed for it and have access to very competitive companies it would be fine to do that. Most FE agents are not P&C agents. It would be a huge drain on time to properly learn P&C just to add the cross sell when they could sell more FE cases or cross sell Medicare which most are licensed for.

The people that make the most money with their insurance license are specialists, not generalists.

 

[Matthew King]

Like Newby says, if you're already licensed and already understand Auto Insurance, P&C, or any other kind of insurance that can be paired with FE. It is always good to cross-sell. However, you do need to wait the time you have to take to stay licensed, stay educated, and get in front of prospects.

It's why most do Medicare Supps, because it doesn't take a lot of extra time to learn, get licensed, and sell it.

 

[Allines]

I have had a p/c agency for 36 years now. I got all the stuff: employees , building, mgmt. systems, multiple carriers etc etc.
The p/c market always looks great from the outside, however it is always time /labor and cash intensive. you either got to do it yourself ( at the start) or add staff asap. We write a lot of FE business, but they are always add on sales. I can do it because I have the staff to do all the other stuff. Best advice has already been given... specialize

 

[TheGodEmperor]

If you are already licensed for it and have access to very competitive companies it would be fine to do that. Most FE agents are not P&C agents. It would be a huge drain on time to properly learn P&C just to add the cross sell when they could sell more FE cases or cross sell Medicare which most are licensed for.

The people that make the most money with their insurance license are specialists, not generalists.

Wouldn't this be a way to specialize even more in FE as you're, in theory, solidifying the sale by selling more policies. You could view it as specializing in FE and being a P&C generalist...selling auto insurance only when you can save someone money, with the main focus being FE.

Beyond getting a P&C license (arguably the biggest PITA) and taking CE courses, is there that much to it? I'm not too familiar with the contracting process for P&C, but it seems like adding an additional $85 X 150 appointments a year in renewals would make it all worthwhile over time.

It would also give you the opportunity to at least make some money if the person you're meeting with ends up not being interested in FE. People have to be interested in car insurance since they are supposed to have it. It's easy to find ways to save people money in FE, isn't P&C the exact same in that way?

 

[adjusterjack]

The pros may correct me if I am wrong but it seems very easy to get a commission contract with an FE or LTC company whereas an appointment with a P&C carrier has much more rigorous qualifications.

There is also fierce competition with online auto insurance that a P&C beginner may have trouble overcoming.

Not saying don't try it.

Just understand how difficult it might be so you can determine whether it's to your advantage to get licensed.

 

[VolAgent]

Food for thought.

It is much more likely an FE client will be a nonstandard home and auto client due to insurance score, driving record, condition of home and payment history. Nonstandard personal lines is much more service intensive than preferred.

Assuming you can successfully cross sell, you will find much of your time spent servicing your auto book than selling at some point. Also, you will need many more auto clients than FE clients to make a decent income, although you will get it each year, assuming you can retain your clients.

Either you will be stuck building out an office and staffing it to service your auto book, working with an agency that will take a large portion of the commission for the service work, or it will be an anchor to drag down your growth.

It is quite likely that auto insurance will be a hindrance to your FE business instead of a boon.

 

[Allines]

If you meet and write 150 fe cases a year you will be a hero.. if you only write 150 auto's in a year you will be terminated.

 

[Gooner]

Food for thought.

It is much more likely an FE client will be a nonstandard home and auto client due to insurance score, driving record, condition of home and payment history. Nonstandard personal lines is much more service intensive than preferred.

Assuming you can successfully cross sell, you will find much of your time spent servicing your auto book than selling at some point. Also, you will need many more auto clients than FE clients to make a decent income, although you will get it each year, assuming you can retain your clients.

Either you will be stuck building out an office and staffing it to service your auto book, working with an agency that will take a large portion of the commission for the service work, or it will be an anchor to drag down your growth.

It is quite likely that auto insurance will be a hindrance to your FE business instead of a boon.

^^^^^^this^^^^^^^^ .

 

[TheGodEmperor]

Food for thought.

It is much more likely an FE client will be a nonstandard home and auto client due to insurance score, driving record, condition of home and payment history. Nonstandard personal lines is much more service intensive than preferred.

Assuming you can successfully cross sell, you will find much of your time spent servicing your auto book than selling at some point. Also, you will need many more auto clients than FE clients to make a decent income, although you will get it each year, assuming you can retain your clients.

Either you will be stuck building out an office and staffing it to service your auto book, working with an agency that will take a large portion of the commission for the service work, or it will be an anchor to drag down your growth.

It is quite likely that auto insurance will be a hindrance to your FE business instead of a boon.

You've convinced me. That does sound like a pain in the ass.