P&C and Life Agent Cross Selling Partnership Setup

Emery Park

New Member
18
Hello scholars! I've been learning a lot from reading posts on this forum about P&C agencies cross selling life insurance through an outside life agent.

My questions are:

What is the nature of these partnerships? Does the life insurance agent identify him/herself as part of the P&C agency when speaking to the clients?

or

Does the P&C agency simply refer out the business to the life insurance agent and the life agent simply represents his/her own office when speaking to the clients?

Also trying to get a better feel of these partnerships. On the surface, it seems like a "win win" situation. But what are the true sentiments from the P&C perspective? How welcoming would they be to a life insurance agent proposing this kind of partnership to the owner of a P&C agency?

And finally, what is the customary commission split between the life agent and the P&C agency? 50/50%? 75/25%?

Thanks in advance my fellow professionals!

Harry
 
These relationships can be setup any way you like. However the most succesfull ones are when the life agent is integrated into your agency and is branded as such. You a;ready have the clients business and presumably trust. If you just "refer" it out, the life agent is almost starting from stratch.

Also, a written legal agreement is a must. IN fact if the economics make sense a corporate entity may make sense

PC guys are not that willing but they should be!

The splits are very negotiable, it has to be worth both your wilds.

If you are the life guy doing all the work, 50/50 is too much in my view.

Mike
 
Essentially you are 'buying' his book. I have seen a lot of P&C guys do this for 20% and the life guy gets 80%. It is best to call as a representative because the trust factor is already there. Most times its a win win for both parties.
 
These arrangements can be very beneficial to both parties. There is a ton of life business in the P&C book.

It is important that the P&C agent initiate the process to some degree. That degree will vary depending upon the P&C agents knowledge of life insurance and desire. Of course the less the P&C agent does, the lower their share of the split. Use a life agent that is experienced and has access to multiple carriers. Ask them to help you prepare solicitation material for your book to include letters, emails and a phone script. It works well if the life agent can give you access to a quote engine so you can send along a blind quote with each new Auto and Homeowners quote or have the life agent prepare one each time.
 
Hey guys great info. I really appreciate your time. I'm actually asking this question as a life agent looking to partner up with some p&c agencies. I was trying to come about with a way to propose the partnership in a way that would be appealing to the p&c office owner.

I think if my proposition is complete with marketing material, scripts and such, it'll make it more appealing.

Once again, thanks for all the advice!
 
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