Leaving Money on The Table

Jun 26, 2007

  1. hbkmat
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    hbkmat Expert

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    Hello I was wondering how hard it is to do auto and homeowners First off because I think that doing there health im sure clients would be receptive to getting auto and homeowners quotes to save money. I got a quote from a company in CA and it looked straight forward for auto. Is anybody doing this and does it work?
     
    hbkmat, Jun 26, 2007
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  2. senior-advisor-indiana
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    senior-advisor-indiana Guru

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    No, you need your series 7 to recommend saving money. :D
     
  3. BKrocko
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    I am licensed in P&C as well as L/A/H. I used to be a captive agent on the P&C side. Auto is easy, just depends on the MVR, age, zip, gender, make & model of auto, and insured to amounts.

    Property (Home) is not bad but much more detailed. Depending on the insured to amount for replacement, you have to tweak the company software to fit your dollar amount. EX: if home is valued at 500K, you have to detail different types of flooring/counter tops/alarm systems/roofing/structure/fireplace/etc. so that the dollar value is accounted for. That part is a PITA.

    You also have a lot of service work - lots and lots of service work. Extremely time consuming between quoting and service. If you think Health/Life has tire kickers, wait till you start using up time on the P&C tire kickers!

    Although I am licensed, I refer all P&C business to my good friend who is a P&C broker. He refers all of his Health business to me. It makes for a great business relationship and the customer wins.
     
    BKrocko, Jun 27, 2007
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  4. djs
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    djs Super Moderator Moderator

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    I work the other way around. I focus on P&C, and write health for my clients that need it. Why? P&C is much easier to write. It takes me 45 minutes to write a homeowners policy, and it's done. My market is considerably different than BKrocko's, home value is not the issue. It does have to be documented, but it really doesn't take to long.

    Service on P&C policies is HUGE. The residuals are better, but you almost need to hire someone to take care of the day to day issues that come up. With health, people don't call you to say 'hey, I went to go see the doctor today'. With auto, guess what, you'll get this call daily... 'Hey, someone just ran into me' (it's never thier fault).

    Now, I enjoy it. I like talking with my clients, don't mind a bit when they stop by my office to 'chat' for a bit, etc.

    I think it works pretty well if you write P&C, and than add in health for your clients. I tried to market health separately for a while, couldn't do it. It's hard to pursue both P&C and health at the same time, though focusing on one and doing the other on the side isn't bad.

    In general:
    P&C is a much easier sale. The rules are much more arcane. You are much more involved in the underwriting process (i.e., you'll pull the MVR, review it with the client, loss history, etc, determine what accidents are ratable, etc) but then have everything changed by the underwriters. Unlike health, you are told the reasons the rates changed. You're clients will complain.

    Health is more black magic. You write the app, send it in (maybe electronically), and then get the email / letter / fax that says 'For some reason only we know, and we can't tell you, we have decided to charge your customer a few extra dollars.....' If you did your job, you probably know why, though clients aren't always forthcoming with all the info, and they sometimes don't know / didn't think it would matter.

    Health, once written, has little service, and the poor residuals to go with it.
    P&C once written, the work starts. Better residuals, but your time will get eaten up quickly.

    Dan
     
    djs, Jun 27, 2007
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  5. BKrocko
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    djs - Good answer to the P&C question. I just had this happen to me the other day. Client was rated up 20%, underwriting would not tell me why. I had to call the client and explain it to him - "your getting a rate up but I can't tell you why". The solution was easy though, I had him 3 way a call to the company so we both found out together. Turns out, he had a discussion with his doc about his daughters condition and the doc noted in his records that he had the condition. The doc has now written a letter of misdiagnosis to send to underwriting.

    I think that the HIPPA/release of medical records form should include the agent as "a person with need to know".
     
    BKrocko, Jun 27, 2007
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  6. hbkmat
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    Great posts. I had a thread called Realistic Expectations of Residuals and I asked how residuals are in insurance. The reason I asked was because in CA Blue offers 20% first year and 10% residuals. The premiums are way more expensive in health I have noticed than any property premium. So why would the residuals be better?? (do they stay way longer?)
     
    hbkmat, Jun 27, 2007
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  7. hbkmat
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    hbkmat Expert

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    Anybody have a company to work for in CA to sell P&C. I have a friend in country wide doing 10-15 refies a month and I know he can get me into do a presentation for his whole office.
     
    hbkmat, Jun 27, 2007
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  8. djs
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    djs Super Moderator Moderator

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    - you can write 10 P&C policies for every health policy. Okay, your mileage may vary, but P&C policies are much easier to find.
    - residuals on P&C policies tend to be the same year after year after year. With health, carriers want policies to roll off after 3 years, so they significantly cut residuals, hoping you'll talk the client into re-writing into a new policy.
    - Auto policies tend to renew twice a year, giving you 2 paychecks. Truth is, you can get 150-200 auto policies renewing in a month, making a pretty decent check.

    P&C is a different thing than health. It really is what you are more comfortable with.

    Dan
     
    djs, Jun 28, 2007
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  9. BKrocko
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    BKrocko Guru

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    Mortgage brokers are a P&C brokers best friend! My P&C broker has a constant flow of referrals from refi's and new purchases. He almost always gets the auto as well - due to added discounts for having both. He is well positioned 'cause he also does home loans and his wife is a Realtor. Good thing he hates doing Health - he lets those crumbs drop my way.

    We used to work together as captive agents and know each others work habits. He has asked several times for me to work with him on the P&C side as well. I cover his business for him when he goes on vac - but my heart is just not into P&C. We may end up splitting an office together later though.
     
    BKrocko, Jun 28, 2007
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  10. SME
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    I have sold P&C and prefer the health side. It is the "black magic" I have always enjoyed. Especially in group health. Lots of black magic there!

    A carrier rep once told me that P&C was like lets make a deal and Health was Jeopardy. It just depends on your personality. Of all the agents I have worked with only one of them has been excellent at both P&C and health. He was an amazing mentor.
     
    SME, Jun 28, 2007
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