P&C - Over the Phone
- Thread starter AFpro
- Start date
- 385
I find my closing ratio is much higher when clients are willing to meet in person to go over the quotes and I enjoy meeting folks. If you are merely selling on price, then over the phone may be possible. My guess is there will be little loyalty with folks who by over the phone and have no desire ever meeting their agent.
- 977
P&C is going to be iffy if it's 100% over the phone. All you can technically do is the state minimum auto folks. Most carriers who write comp/collision will want photos or some sort of inspection form or affidavit. You could get clients to send you pictures of the car perhaps, but you're taking a chance trusting them to give you current photos. I even have one regional carrier that requires photos whether or not they have comp/collision, since state-required UM means they actually might end up paying physical damage on the car anyway. Then, if you write nonstandard you'll find many of the NS carriers want you to have a physical, retail type location. If you want to sell preferred without a location, you might get by with something like superior access or insurance noodle, but that's a hard way to sell insurance, tbh.
If you're selling home, you're again running into the issue of inspections. Most carriers will expect you to do some extent of field underwriting, meaning physically seeing the property to ensure there are no unacceptable hazards or physical damage to the structure. You may even have photo requirements. Again, if you trust the photos people send you, you're putting your neck on the line. Every person you deal with will NOT be forthcoming.
Let's not even get into commercial lines. I don't think that is really possible.
In short, you'll have a hard time of it selling P&C if you want it to be completely over the phone.
If you're selling home, you're again running into the issue of inspections. Most carriers will expect you to do some extent of field underwriting, meaning physically seeing the property to ensure there are no unacceptable hazards or physical damage to the structure. You may even have photo requirements. Again, if you trust the photos people send you, you're putting your neck on the line. Every person you deal with will NOT be forthcoming.
Let's not even get into commercial lines. I don't think that is really possible.
In short, you'll have a hard time of it selling P&C if you want it to be completely over the phone.
- 1,581
I wrote an insane amount of personal lines premium. 100% referral business and 99% written over the phone. I have a bunch of established realtors & mortgage offices that systematically have buyers call me for insurance. When you're dealing w/ upscale people that trust their lender/realtor...and that professional is *telling* them where to get the insurance...it's easy to close over the phone. I've built this up over almost 10 years now so it takes time.
There is such a thing as having phone skills (a way of talking w/ people, a way of conveying professionalism & confidence ect..) and it takes awhile to develop.
For personal lines P&C (w/ the right setup) you can absolutely sell over the phone. However that setup takes time to build.
And my god...you have carriers wanting pictures of CARS?!!?!
There is such a thing as having phone skills (a way of talking w/ people, a way of conveying professionalism & confidence ect..) and it takes awhile to develop.
For personal lines P&C (w/ the right setup) you can absolutely sell over the phone. However that setup takes time to build.
And my god...you have carriers wanting pictures of CARS?!!?!
- 977
the only carriers that require the photos along with app are nonstandard, admittedly. I've been asked enough times about photos or inspection report during a claim, from both Nationwide and Progressive, that I do it every time just as a CYA, even if it's not required. I'm not taking a hit for somebody else, especially now that the E&O exposure is my own.
You were captive before, too - did Allstate not require that of you?
If that's not something most folks do, maybe I just haven't adjusted to life as an indy yet.
You were captive before, too - did Allstate not require that of you?
If that's not something most folks do, maybe I just haven't adjusted to life as an indy yet.
If you have car claims within 30 days of binding a policy, those pictures will save your butt. It happens occasionally, but if you end up with a higher than normal amount, by even a bit, they will be asking for your field underwriting procedures.
This isn't a big issue if you write households with previous insurance, but I used to write a lot of car lot business, lots of 'early' claims. I always had pictures of these cars, though, I got most of them straight from the dealer.
Same thing with homes. Lots of carriers do inspections after you bind it. If they find issues, they will be asking for your field underwriting procedures as well.
In neither case, do they require pictures, it just shows that it was done.
Dan
This isn't a big issue if you write households with previous insurance, but I used to write a lot of car lot business, lots of 'early' claims. I always had pictures of these cars, though, I got most of them straight from the dealer.
Same thing with homes. Lots of carriers do inspections after you bind it. If they find issues, they will be asking for your field underwriting procedures as well.
In neither case, do they require pictures, it just shows that it was done.
Dan
Verbgravy
Expert
I love the phone. It's my bread and butter. The first thing I teach a new producer is how to work the phones.
I'm not sure why someone would say you can only write the state minimum folks. We don't deal in the non-standard market at all, but I haven't had a carrier request photos in over a decade. The exception being on a few collector vehicles. We write plenty of business, most of it referrals, some of it generated by our telemarketers, but a vast majority of it is over the phone.
Consumers have become accustom to doing business via phone and email. Not just accustom, but many prefer it. Why not give them what they want? The real challenge is in retaining the business. You have to build a bridge from the agency to your client. We have a retention program in place, that tries to make us more than those folks that wrote my insurance over the phone.
I wrote a $2.5 million dollar house last month and have only talked to the client via phone and email. He's already referred two of his neighbors.
You can drive across town to sign that client up. I'll stay in the office and sign up three, while you're stuck in traffic.
I'm not sure why someone would say you can only write the state minimum folks. We don't deal in the non-standard market at all, but I haven't had a carrier request photos in over a decade. The exception being on a few collector vehicles. We write plenty of business, most of it referrals, some of it generated by our telemarketers, but a vast majority of it is over the phone.
Consumers have become accustom to doing business via phone and email. Not just accustom, but many prefer it. Why not give them what they want? The real challenge is in retaining the business. You have to build a bridge from the agency to your client. We have a retention program in place, that tries to make us more than those folks that wrote my insurance over the phone.
I wrote a $2.5 million dollar house last month and have only talked to the client via phone and email. He's already referred two of his neighbors.
You can drive across town to sign that client up. I'll stay in the office and sign up three, while you're stuck in traffic.
Sellilng P&C over the phone is easy even for standard markets. Forget the state minimums... stay away from the low-end guy, when purchasing leads. Filter as much as possible to only get high-protential leads. It's nice to have clients come in, but you move much faster over the phone. The key when working as a local agent (indy or captive) utilizing your resident-licenses and then focus on a few production using utilizing your non-resident license and be a national broker. I do 99% leads and 99% over the phone. Like Verbgravy said, "You can drive across town to sign that client up. I'll stay in the office and sign up three, while you're stuck in traffic."
I think it really depends also where you are.
In my metro area of Philadelphia and New York City a lot of the commercial insurance is done over the phone initially due to the lack of time these guys have.
I'm usually going through the process of quoting over the phone and email and then meeting them for personal inspection and app signing.
These guys really don't have time to sit down and give me their life story just to find out I won't be able to help them out.
In my metro area of Philadelphia and New York City a lot of the commercial insurance is done over the phone initially due to the lack of time these guys have.
I'm usually going through the process of quoting over the phone and email and then meeting them for personal inspection and app signing.
These guys really don't have time to sit down and give me their life story just to find out I won't be able to help them out.
- 385
For you guys/gals that do it all over the phone, can you outline your process. Do you get necessary info to quote on first call, put together quote, and then call to go over the quote and close? Or do you email it to them and let them review at their leisure? I'm sure it's a case by case basis, but just want a gist of how you guys do it over the phone. When I was captive, I did many over the phone as well, but I sold on price and did anywhere from 60 - 80 quotes a month with little to no follow up, unless they reached out to me first. I would quote and then mail them paper copy and email them. Those that liked what they saw called back, those that didn't, no biggie.
