How Do You Turn Down Business?

[Guest]

Hey P&C agents,

How do you turn down business when a client comes to you and wants to insure their car or home and you don't want them? Maybe their credit sucks, or too many accidents, or you just don't like the person. Do you overquote the product or just tell them you don't want them? I had a guy in my office today that I just did not want in my book and I started wondering how others deal with this scenario.

 

[Josh]

I'd think it unethical to overquote, but you can always refer them down the street to another agency vs saying no, maybe say you know XYZ agency specializes with folks in their situation (make sure it is one that does). Even an "I'm afraid to even give you a quote, you might want to try..."

 

[P&CGuru]

I tend to offer less than stellar service, and make hints that they may be able to get a better deal at Geico

 

[NCAgent]

I specialize in the higher-end market. However, I do have 2x agencies that are good for the non-standards. I refer business to them and they try to send some things over my way when possible. It makes for some decent business and it makes both of our carriers happy.

Or you can just do it yourself, suck it up, and charge some agency/broker fees to justify it if legally possible.

 

[btbrown]

Great question! Agents are the primary underwriters when it comes to the sale of insurance. We know from data that individuals who have filed a claim recently are much more likely to file another one. At times it may be in the best interest of your agency to let potential clients know you have minimum guidelines they must meet. Explain to them that their situation requires company approval and that they would be better off with their current company. Often times the prospect will accept your advice and stay where there at with no further work to you.
Another important consideration is your relationship with the company. If you write a piece of business that has prior losses you are taking on some risk. Companies quoting system are too complex for them to understand and they may be underpriced for a bad risk. When agents call underwriting they are counting on your recommendation to accept the risk. If the customer then has a loss it could leave a bad taste in the company's mouth. Implementing a philosophy of encouraging people to stay where there at is a good thing for all parties. You are protecting the company from adverse risk which translates into more stable rates for current clients. It is a good for the prospect too because they are more likely to be canceled by the new company then there current carrier.

 

[Norwayguy]

Hey P&C agents,

How do you turn down business when a client comes to you and wants to insure their car or home and you don't want them? Maybe their credit sucks, or too many accidents, or you just don't like the person. Do you overquote the product or just tell them you don't want them? I had a guy in my office today that I just did not want in my book and I started wondering how others deal with this scenario.

My uncle owned a P&C agency and at the begining of every month he said he had to be careful as people would come in that he definatly did not want in his book. He would run all his companies and present his highest option so that they could find cheaper coverage elsewhere.

 

[nyc2phi]

Can't you just tell them the rate is too high with the companies you represent and that you know a better fit for them else where?

 

[Guest]

Can't you just tell them the rate is too high with the companies you represent and that you know a better fit for them else where?

There are a lot of things I can do. But I always want to keep a positive impression in the person's mind about me so that they won't say bad things about me or my agency to their friends/co-workers/family, etc.

There are a lot of experienced agents on here who have dealt with this for years. I just like to get an idea of how others handle it.

Right now I ask how much they pay and then I look at my computer screen and tell them that we just can't beat their current rates, but thanks for giving me a chance at it.

 

[FL P&C Broker]

My favorite response:

"Our E&O insurance does not allow us to write limits that low"

 

[VolAgent]

My favorite response:

"Our E&O insurance does not allow us to write limits that low"

That is a definitive statement. You better hope that is the case, otherwise you could be accused of discrimination if you write someone else for those limits.