Describe Your Ideal Customer

[Brandon Lewis]

Describe who your ideal customer is for auto insurance. I'm interested in seeing what type of profiles people have created for their ideal customer (hopefully you have one).

For example, do you prefer people who own newer cars VS older cars?

Brandon

 

[Guest]

I dont care about the car, I want volume.

I prefer small business owners, they generally have multiple cars, a good size house, maybe a couple rental houses, and toys, such as quads, boats, RV.

If you get a small business owner, you are an *** if you dont have all of their policies. You simply have to ASK.

BOP, GL, Commerical autos (if they have them) WC, personal autos, home, toys, and depending on what all you sell, health, life retirement stuff, maybe group benefits also. if you dont sell all that, then a great referral for you to someone who does.

I sat in a presentation a couple weeks ago, the presenter said this and i was SHOCKED, I will have the %'s wrong, but a good example.....

Captive companies have 30% of the commercial market and IA's have 70%

Captive companies have 70% of personal lines market and IA's have 30%

kinda makes you go HMMMMMMMMMMMM

 

[BTFuzz]

I agree with RBA....the ideal is a small business owner as everyone has personal lines that need insured. Outside of that, I like younger families that have kids and own a home. These are the kind you should have for a very long time and then also insure their children.

 

[Brandon Lewis]

RBA and BTFuzz, thanks for your feedback.

 

[arnguy]

I don't do p&C, but I would assume a prospect with zero accident record would be the best client.

 

[Insurance-Guy]

I don't do p&C, but I would assume a prospect with zero accident record would be the best client.

Are you kidding? J/K Just kidding around with you!

I love my preferred business too. And generally speaking there is much less service work involved with the preferred stuff. The higher end clients have more toys…so it works out well.


But I don't shy away from bad records either. I will issue the NON Standard business with Non-standard companies too. I just issued a policy for a guy who just got his Drivers License back...(2) DWI's (2) AFA, and (1) Speed. Premium was over $3,000 a year. This was with a non-standard carrier that loss ratio will make no difference at all to me. AND guess what paid in full... But the key is not to mix that client in with the good company…which he would never qualify for anyway!

 

[Guest]

I agree with Man1...

preferred business usually sticks around for a long time, but commission wise doesnt pay as well because the premiums are lower.

Non-standard tends to not stick around very long, but since it is higher premiums, it has fatter commissions......

So in reality, you want both!

And as for the zero accidents, not really, if they already had one, they will tend to be more careful, and again, its a higher premium.......

Think of it this way......non-standard pays the monthly bills.

Preferred business funds the retirement accounts.

Remember, most non standard carriers pay as earned, so you dont really have to deal with chargebacks as much

 

[Brandon Lewis]

So it looks like the most ideal prospect is one who needs many things insured. And these are small business owners and people who are wealthy because of the number of potential toys they have.

 

[Guest]

So it looks like the most ideal prospect is one who needs many things insured. And these are small business owners and people who are wealthy because of the number of potential toys they have.

BINGO!

now answer this question..........

Would you rather have 100 clients with 1 policy each.
or 30 clients with 3 policies each, which gives you 90 policies.

1/3 of the time spent, less marketing, less hand holding, less phone calls, less billing,

 

[Bertolinoins]

I actually insure my dream client. He is a cosmetic dentist that own's a few apartment complexes and is the president of his luxury condo association that sits in a flood zone. 3 houses, the condo, 64 foot boat, 6 cars and a 22 to son with a DUI. Great guy as well. Wish I had 50 just like him.