Hi, I am a relatively new insurance broker (about 2 years in the business; acquired an existing practice). I recently came across this new company backed by some reputed investors (Citibank, etc) that is developing what they claim is a new model for insurance lead gen and they asked me to join their agent/broker advisory board. I think it's an interesting model but would love to get your thoughts to make sure that others feel the same - essentially they share a copy of the insureds' existing insurance policy summary page (with customer info, coverages, etc) with a selected set of agents/brokers and if you are able to beat the existing price for the same coverages, they connect you with the policyholder. What do you (especially those that have been in the insurance business for a long time) think about this? Thanks for your inputs!! - Dave
New Approach to Leads - Your Advice Needed
- Thread starter insday
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- 5,243
As an insured, if my company shared my info...I'd fire them and probably file a complaint against them with the DOI for sharing my info...whether it led to something or not...as a consumer, I'd be pissed.
- 11,995
That sounds like a terrible model. I'm sure we're missing something.
- 5,243
Yes...the common sense used in developing it...HA
- 15,041
I have a feeling that they get the insureds to upload the dec page themselves, versus getting from the insurance company or current agent. After all, what company or broker would willing give away this information about its clients? If so, I believe you have make two very bad assumptions.
1. Most people really aren't that interesting in shopping their current coverage, excluding car and home and even they aren't shopping as much as some would have you believe.
2. I would be shocked if more than a handful would be willing to scan in their doc page so they could get rate comparisons. They barely want to provide accurate information on most lead generation sites as it is. Why in the world would they scan in their dec page?
I guess anyone who did this would be a great prospect, but I doubt there would be enough real leads for the vendor to survive, so their will be pressure to "fluff" out the number of leads to meet expenses and demand.
1. Most people really aren't that interesting in shopping their current coverage, excluding car and home and even they aren't shopping as much as some would have you believe.
2. I would be shocked if more than a handful would be willing to scan in their doc page so they could get rate comparisons. They barely want to provide accurate information on most lead generation sites as it is. Why in the world would they scan in their dec page?
I guess anyone who did this would be a great prospect, but I doubt there would be enough real leads for the vendor to survive, so their will be pressure to "fluff" out the number of leads to meet expenses and demand.
- 5,243
I just can't fathom a universe where this is not going to get the OP scammed out of some money. If it sounds too good..ya know. After briefly selling P&C, you had to track ppl down just to save them 40 or so per month.
- 15,041
I have no idea what role the OP is going to play in this. But I can't possibly see how this is going to be profitable for the vendor without padding it with bad leads.
Insurance companies retain what, 80% of their clients? Independent agencies can retain in the high 90% when you consider rewrites within the agency. There are very few people actually changing coverage, and I just don't see them sharing this much information.
At best, it could support ONE agent who was licensed nationwide, maybe an agency. But having competitive carriers nationwide? I'm not sure that is possible for one agent.
- 5,243
I agree with you..it feels like one of those..you give us $500 by money order and we'll get you leads...that's all I meant.
- 15,041
I get you. I'm holding back as I'm not sure if the OP is going to work for the vendor, is helping to develop it, etc.
But if the OP is just going to buy these leads? Run Forest, Run!
- 4,132
You it happens almost everyday that someone a couple years in the business who purchased an existing practice gets invited to serve on a board. Makes sense to me........
