Marketing to Captives

[Verbgravy]

We're an independent agency. We currently have a few captive State Farm, Allstate, Famers guys that send us a few things here and there, but I'd really like to ramp up our marketing efforts to them.

If you're indy, what are you doing to market to captives? If you're a captive, what would you like to see from an indy partner? I'm trying to put together a marketing flyer that highlights the value we can add, like writing mono-line homes for clients with claims, vacant properties, and obviously the business we can write on the commercial side. I was planning on doing drop ins with cookies, flyers, and business cards. Give the elevator pitch on value thank them for their time, and move out. Thoughts?

We try to emphasize that we will NEVER try and take their client. If they send the home over, we will only write the home. We obviously want to build long term referral relationships, not sacrifice it to write an extra policy or two. Does anyone want to share what's been successful for them?

 

[BSM]

We have been very successful working the plan you outline. We maintain referral relationships with the majority of the State Farm and Allstate agents in the area. We haven't had as much success with other captives.

We spend a fair amount of time communicating with those agents to make sure we stay on the same page with their expectations. Also, to build a professional respect so to prevent it from turning into a pass-trash relationship.

Throughout the year, I try to take the agent to lunch, drop off higher-end goodies to their staff (who make most of the referrals!) and a Christmas gift.

 

[AdvisorsIns]

We have successfully marketed captive agents and it accounts for about 20% of new business. It also accounts for about 80% of our non-standard business and accounts for about 60-70% of our service work. Fare warning. Growing a profitable book of business with low service expense. Low claims. And preferred market clients will always be better. The majority of our problems come from the captive business we get. We stopped marketing to them because it was more beneficial to market to the classes of business we wanted instead of the left overs from captive agents. Plus the accounts we want are rounded. Feeding off of captive left overs is not a way to grow a profitable book of business However, it is a way to get up and going in the beginning if you don't have a natural market yet

 

[alwrightins]

We have successfully marketed captive agents and it accounts for about 20% of new business. It also accounts for about 80% of our non-standard business and accounts for about 60-70% of our service work. Fare warning. Growing a profitable book of business with low service expense. Low claims. And preferred market clients will always be better. The majority of our problems come from the captive business we get. We stopped marketing to them because it was more beneficial to market to the classes of business we wanted instead of the left overs from captive agents. Plus the accounts we want are rounded. Feeding off of captive left overs is not a way to grow a profitable book of business However, it is a way to get up and going in the beginning if you don't have a natural market yet

Completely agree with the above statement. The indy agency I am at gets referrals from statefarm and they are nothing but a pain. The last one i got, I found a carrier to write his HO given all the problems and after he had coverage in place statefarm took him back lol. So i think we got used lol. no more...

 

[BSM]

We have successfully marketed captive agents and it accounts for about 20% of new business. It also accounts for about 80% of our non-standard business and accounts for about 60-70% of our service work. Fare warning. Growing a profitable book of business with low service expense. Low claims. And preferred market clients will always be better. The majority of our problems come from the captive business we get. We stopped marketing to them because it was more beneficial to market to the classes of business we wanted instead of the left overs from captive agents. Plus the accounts we want are rounded. Feeding off of captive left overs is not a way to grow a profitable book of business However, it is a way to get up and going in the beginning if you don't have a natural market yet

I agree with this as well. Most of the referrals go to our non-standard auto agency and we pick up commercial lines for our main agency. You have to do some relationship building to make sure you don't get every internet/yellow page inquiry their agency doesn't want.