FE Persistency

[theinsuranceman]

The above comments all make sense. Comments from anyone else?

 

[Justin Bilyj]

The only problem about Travis is that he doesn't offer training.....unless you take THEIR contracts... :-(
Travis you should get together with Rob Liano and offer some training...lol

 

[theinsuranceman]

The trick is to stay in contact with your client and do policy reviews. THis prevents a lot of the lapses.

Not so sure about this. Debit agents (who go and collect the premiums each month from their policy holders) still have more lapses than "ordinary business" agents. Seems that MONTHLY contact has no influence on improved persistency.

 

[Frank Stastny]

Not so sure about this. Debit agents (who go and collect the premiums each month from their policy holders) still have more lapses than "ordinary business" agents. Seems that MONTHLY contact has no influence on improved persistency.

From what little I know about working for a debit company I believe they target a specific group of people who are unlike those that most agents prospect to. They have to go each month and collect the premium which is usually in cash. I have been told that if they didn't do that the policy would definitely lapse.

Their only "contact" with the client is standing at the door waiting for the money or trying to sell them additional insurance. That is typically not the kind of contact I have with my clients.

 

[stormtracker]

Not so sure about this. Debit agents (who go and collect the premiums each month from their policy holders) still have more lapses than "ordinary business" agents. Seems that MONTHLY contact has no influence on improved persistency.

Debit agent's business doesn't lapse, it "collapses."

 

[theinsuranceman]

Debit agent's business doesn't lapse, it "collapses."

LOL.....so true!
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My thoughts are they have to have a policy before they can cancel it. Scott and I have discussed this before… If you as an agent "decided" not to close the sale for whatever reason sure you have no risk of charge backs, but I think you will come out way ahead if you close everybody you can. Lets say out of 10 "shaky" sales, 5 fall off. Well you still got 5 you would not have gotten if you did not close those "so-so" sales.

I also have no problem telling the client after a sale and before leaving… "Mildred you did a good thing today. You have protected your children and now they will not be burdened with any of your final expenses. Don't let anybody come and talk you out of this program…ect…

If you should also follow up with all clients that fall of the books… Most of the time you can save them… I would say the #1 reason policies fall off is the bank draft goes NSF, and the company automatically switches to quarterly billing, and our FE clients can't afford that and it lapses.

I agree. But, the question is do you think the persistency is any different between laydowns and difficult closes?