High Net Worth P&C Niche

[Broker12345]

Hi all,

Looking to grow primarily in the commercial an HNW/IHNW client space.

I've been in the industry since 2015 - am relatively young (26 YO) and generally speaking, most people in my circle are simply not at the point yet where I would consider them to be my target client.

Wondering if anyone has suggestions for a young person to begin carving out part of the market in this segment.

Any help is appreciated!

 

[adjusterjack]

Join a country club and learn to play golf.

 

[Central Coast Agent]

Cultivate Centers of Influence (COI's) among financial professionals like wealth managers that would not consider you a threat. If you can find someone who is starting out their wealth management practice you could collaborate together.

 

[InsCommentary]

You need to know your stuff, know as much about risk management as you do the insurance branch, and carry high E&O insurance limits.

 

[Markthebroker]

I am 100% commercial, and it's all referral.

I suggest you purchase the Sandy Schussel referral program, and watch this youtube video, and read my example below.

Of you can waste your time with cold calling, and your money with leads. That's what most agents do, then fail.

Your choice.



Here is an example of my sales process in regards to referrals. Normally I'm not this aggressive asking for referrals since I am already getting plenty, but this example displays all the techniques. For life and health, you can think about family members, friends on facebook, linkedin, etc you can ask about for referrals.


So, I meet with an auto body shop. I make it clear I almost exclusively work by referral, and I'd be asking him later for referrals for any other businesses that may be also interested in speaking with me (referral opportunity #1). I mention that starting a business is a big risk and frankly kind of scary. Does he have a friend, relative, etc. that owns a business that inspired him/mentored him (referral opportunity #2). Most of the shop owners I work with used to work for another shop before they started their own shop. Where did he come from, perhaps I know them (referral opportunity #3), When I was going over his business, I asked if he had any other body shops he worked with or knew as I work with a lot of other shops in the area (referral opportunity #4). Who does he send out to for windshield work (referral opportunity #5). While I was asking about his business, I also asked if he had repair shops he networked with to get business (referral opportunity #6). When I come back and propose, assuming he buys, I'll remind him that I'd like to know if he has anyone else that owns a business that he can think of that may want to talk to me, that's another referral opportunity. I'll ask if he knows his neighbor to the left, to the right, behind him, across the street. There are several more referral opportunities. I can also ask about who he buys his parts from.

Then, when I meet to close, I'll pull out a sheet I compiled ahead of time with the 20 nearest large repair and body shops, and tell him I am thinking of introducing myself to them, and ask if he knows any of them. If he does, I'll ask for the best contact, and if it's ok to mention him and that he bought from me and I saved him money and gave him a better policy. Then I'll ask if it's ok to call and introduce myself to any of the aforementioned referral opportunities.

Finally, I'll call back 3 or 6 months from now to check on him. I'll ask if he mentioned to anyone that he moved his insurance, and what he told them. Assuming it was a positive conversation, I'll ask for permission to introduce myself to those people.


Try some of this stuff out, make it fit for you. Maybe you can even improve on some of this.


I suggest you start going back to your clients you have sold and start trying some of this stuff.

-Mark

 

[EugeneM]

Good stuff dude. I took some notes

 

[Travis Price]

I hands down agree with Mark.

I bought the $36 audio. The first lesson introduces three things that I immediately implemented.

1) Give people a chance to be a hero.
2) Don't just ask for a referral. Tell them not to keep you a secret.
3) Make them feel important

I immediately adjusted my referral request. My pitch is simple:

Don't keep me a secret from your friends and family. For most people just entering Medicare, it's their first time having to buy health insurance. Make sure they don't screw it up by letting them know about me. No matter how busy I am I will push them straight to the top of my list.

 

[marindependent]

Define HNW?

It is vastly different within the various levels. The $75MM NW client is not at all similar to a $7MM client.

Personally if I was 26 years old, I wouldn't worry about this space...yet. I would instead find other 25 year old people that want to be very successfully and slowly learn my craft.

 

[Broker12345]

Thanks very much for the responses & the detailed breakdown Mark.

I've developed some fruitful COI's thus far as well.

I'll definitely be looking into the referral program mentioned.

As for defining HNW - I would say anything 2-3MM+ I would consider in my book HNW. Long term, my goal is to increase my minimum threshold of requirement, as I begin to deal more & more with larger accounts on the commercial side, it will likely come along with more & more complex and H(er)NW individuals.

This gives me some food for thought and some ideas to get started.

I appreciate everyone being helpful, I get it may be partly unrealistic to think I'm just going to get in and rapidly excel in the space, but hopefully as a long term strategy it pans out!

 

[marindependent]

As for defining HNW - I would say anything 2-3MM+ I would consider in my book HNW. Long term, my goal is to increase my minimum threshold of requirement, as I begin to deal more & more with larger accounts on the commercial side, it will likely come along with more & more complex and H(er)NW individuals.

So, the insurance space for clients between $2MM to $3MM, I rescind some of my previous advice. You can certainly start marketing and selling to those folks at this place in your career. I would encourage you to focus on up and coming folks and grow with them.

One of the keys to doing this successfully is "stop selling insurance" and start advising clients on insurance and other options. Wealthier folks do not need to insure everything, but it helps if they are at least told what they are not insured against.

When clients call in wanting to lower their insurance premiums - be honest with them. "I'm more than happy to assist you, but our goal here to provide the best coverage, not the lowest premium." Many people will be turned off by this, but some will more willing to work with you.