Hey Commercial agents- How long does it take to get credits added to a renewal??

[AgendaAgent]

Backstory to question-

I was listening to a training/motivation/idea thing for commercial lines sales today. One thing the person recommended was going out to prospective clients 90 days before their policy renews to meet and collect the info to quote their policies. BUT he recommended not presenting the quote until after the renewal came in so that he could fish around and find out if he needed to go back to underwriting and get more credits put on.

BUT THEN- he said that he recommends making the appointment to deliver the quote proposal close enough to the renewal so that the existing agent wouldn't have time to request credits on the existing policy and therefore beat your price.

This confused me... I guess I'm thinking you'd have to wait until pretty close to renewal and at that point- what client wants to do business with an agent who took 2 months to prepare a proposal?

Am I not getting something?

Anyone have any insight or thoughts on this?

 

[1manshow]

Firstly....once you ask for loss runs you've likely triggered a game that has the incumbent dragging his/her feet to the last minute delivery of the renewal policy. Secondly...read "the wedge" and then decide how to handle it on your own.

We use several methods depending on the relationship. I'd guess you'll develop your own method that fits your individual style.

 

[Markthebroker]

Firstly....once you ask for loss runs you've likely triggered a game that has the incumbent dragging his/her feet to the last minute delivery of the renewal policy. Secondly...read "the wedge" and then decide how to handle it on your own.

We use several methods depending on the relationship. I'd guess you'll develop your own method that fits your individual style.

As far as loss runs I have the client go direct to the carrier for them, usually at the last minute, after the quote has been accepted. That solves that problem every time. As long as they are loss free, you don't need loss runs to quote most of the time.

As far as quoting against the renewal instead of the current policy, I guess that's a good idea. I rarely do, and I have a pretty high close rate. That's just one more thing to ask of the insured and complicate things. You're just making it harder and more stressful for the client. I quote against current policies and do midterm rewrites all the time. Also, doing mid term rewrites, you don't have to worry about the other agent applying credits. Even if it's on the renewal, the insured won't bother going back to the agent anyhow.

It could be that your trainer has a different way of doing things than I do, but my first guess is that he is big on talk and ideas, and low on experience.

 

[AgendaAgent]

Firstly....once you ask for loss runs you've likely triggered a game that has the incumbent dragging his/her feet to the last minute delivery of the renewal policy. Secondly...read "the wedge" and then decide how to handle it on your own.

We use several methods depending on the relationship. I'd guess you'll develop your own method that fits your individual style.

I don't think his comments were so much about loss runs, but rather about going back to the client too soon before his renewal date and then the potential client runs to his agent who then gets credits applied and saves the account...

I will look up the wedge though- thanks for the suggestion.

 

[AgendaAgent]

As far as loss runs I have the client go direct to the carrier for them, usually at the last minute, after the quote has been accepted. That solves that problem every time. As long as they are loss free, you don't need loss runs to quote most of the time.

As far as quoting against the renewal instead of the current policy, I guess that's a good idea. I rarely do, and I have a pretty high close rate. That's just one more thing to ask of the insured and complicate things. You're just making it harder and more stressful for the client. I quote against current policies and do midterm rewrites all the time. Also, doing mid term rewrites, you don't have to worry about the other agent applying credits. Even if it's on the renewal, the insured won't bother going back to the agent anyhow.

It could be that your trainer has a different way of doing things than I do, but my first guess is that he is big on talk and ideas, and low on experience.

Thanks Mark-

I think you may have commented on my other posts, but regardless I've read quite a few of your comments to other people and I have to thank you for the advice you've given out. I definitely appreciate it regardless of whether it was to me or not.... either way it's helped!

I also thought that it complicated things. I like your idea of writing mid-term, but everyone has always preached to NOT do that because of mid term cancellation fees... do you not run into that in your state?

I wish I had a trainer life would be much simpler! I am just trying to glean advice and learn what I can. I am good at doing--but the not knowing what to do from experience causes alot of paralysis on my end. Somewhere in my insurance career I transitioned into management and I'm stuck getting momentum on the sales side. I feel like I have decent knowledge, but I really need to get over the speedbump and get some sales wins to feel confident in this role.

 

[1manshow]

I like the midterm rewrite idea. Being more old school I've held on to the habit of x-dates.

The loss runs from the carrier at the last minute would be a stumbling block for me in negotiating max credits on my quote at the last minute.

 

[AZDave]

The Wedge - YES! Great tool and I use it! My early training preached being that the last agent in the door wins the account. But the incumbent Agent is in control more than you think! Sucks to be the agent that thinks he is competing for the business, only to find out he is supplying pricing ammunition that the incumbent gets to use.

For any mid term cancels: Be certain that insured knows the short rate penalty cost, and if work comp is in play, make sure you understand how it will effect their Emod anniversary date rating.

 

[AgendaAgent]

My early training preached being that the last agent in the door wins the account.

Interesting, so you want to be the 4th out of 4 agents approaching them?

I wonder if this is part of the motivation of what I was reading - to be one of the first to meet and greet, but to present last?

What do you think about dragging it out so that the incumbent doesn't have time to ask for credits? Does that seem feasible?

 

[AZDave]

^ The Wedge. Read it!

 

[Markthebroker]

On some policies there is no cancellation fee, on some there is. On others there is a minimum premium. As far as moving the ARD, I have been doing mid term rewrites for years, and it hasn't been an issue.

I figure out exactly what their cancellation fees or short rate fees are, and how much I am saving them, and work that into the presentation.

For instance on the last one I wrote mid term I was saving them around $2500, but their short rate fee was around $600 or $800. No brainer.