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Interesting to know. Seemed a little lower than I thought it would be.
What is a FE Carriers Average Placement and Persistency?
- Thread starter NSRH
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Interesting to know. Seemed a little lower than I thought it would be.
In fact, when it comes to FE business I would think that is higher than most company averages..
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- #13
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Interesting. You think the average placement is lower than 80%?
Possibly.. especially the way some agents sell using the "free look close" plus the fact that most of us don't collect the first premium any more, choosing to let the company draft it.. I would think the number of not placed due to first premium not paid is a real problem for companies.
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So it seems like your question is really about what impact price has on placement and persistency. Any thoughts from the crew?"Takes one to know one."
Im asking is for a couple of reasons:
1.) I know for a fact that one higher priced FE carrier is running at a 77.8% placement and an 83.4% 13 month persistency as a company. (I was surprised how low it was since this is mostly a F2F carrier)
2.) I'm wondering what the price buster companies are running. I would think better, but not sure by how much.
3.) There are alot of individual agents who have stellar quality, but Im interested in the average.
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The only one I remember recently and you guys will think I'm cherry picking but it's honestly the only one that a company has pointed out to me recently is a Trinity/Family Benefit. Alvin went over the figures with me in December because I had 6- agents that were on target to win their convention and was in a tight race to win their top IMO of the year. (Brad ended up getting that for the 4th year in a row though. Congrats Brad!)
But of all our guys that produced the most numbers with Trinity/Family Benefit the average 13 month persistency was 94%. None of them were below 90%. Our agency as a whole is 89.5% but there are two agents under us that are at 50%. Both of those two are independent brokers that only have that one contract with us. (Thanks, fellas!)
I don't know what placement % is but Trinity/ Family Benefit does point of sale interviews with approvals so the only not takers would be from 1st draft not clearing.
I know our persistency numbers with KSKJ and Oxford are in the 90's also.
I'm a firm believer that the more competitive the premium is, the better the business will stick. I just can't wrap my head around any other way of thinking because when you go on appointments the low hanging fruit is always by looking for people paying on policies that are easy to beat on price.
I know our persistency has not been nearly as good with UHL and RNA but our volume of business with them is much lower. When RNA had really low premiums I think we had great persistency there too. But I don't know the data. I'm not a bean counter by nature.
- 5,943
Competitive premium gets you on the dance floor... but a good dance partner (agent) can keep higher premiums on the books by personality and follow-up... I have run into this myself.
- 17,077
Oh I've definitely run into cases where you can bear their rate by a lot but they still just want to stay with what they have. No question about that.
But those cases are rare compared to the ones that will cancel and go with the cheaper price. Not even close.
I'm open to discussion. But in my mind there is no way a high premium company can ever have the persistency of a low priced one. I don't see how it could ever happen.
I'm not saying high price policies never stay on the books. I'm sure a certain percentage of people by the policy and never respond to another lead. But also a certain percentage does keep sending and lead cards to see if they can get a better price. Or to see if they can get something for free. And if they can get $12,000 in coverage for what they're already paying for $10,000 in coverage, well that is what they were hoping to find.
If this only happens 10% of the time that people buy a high price policy that would result in 10% worse persistency. Am I wrong?
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(Took a moment to jump start some college girl's car while at dunkin)
Yes, if the gap is wide enough I would agree... however, a small price gap more of what I'm thinking... too often we teach how to sell, and fail at teaching how to be an agent...
Yes, if the gap is wide enough I would agree... however, a small price gap more of what I'm thinking... too often we teach how to sell, and fail at teaching how to be an agent...
- 17,077
If it's just a small gap then you are selling a low priced company. Agents can give great service and sell low priced companies just as easy as selling a high priced one.
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