What is a FE Carriers Average Placement and Persistency?

[Glen Shelton]

If the agent or the agency does nothing to preserve business it's definitely going to affect persistency. But I don't think the expensive FE policies have the same type of persistancy at all. All companies are going to have the majority of policies stay on the books. But with the high priced companies I hear things like 70% is acceptable and 80% is considered real good? And I know they have very active policy preservation departments. At least LH does. They save a few but most are doomed over the price difference when they are discovered.

I'm not saying every high priced policy falls off the books. But I think persistancy is down 10 to 15% just due to price. At the two extremes (LH compared to any real low priced company) it has to be. Every one on this forum has replaced LH policies routinely just simply by price. Not that most of us run into them every day. But when you do it excites you just a little bit more. You know you can show them something that is going to make them very happy they had you come out.

It would be great if there were a real scientific way to measure it. But too many variables.

I'm sure the price of the policy plays a role but its gotta be small. I think even 15% of fall off due to price of premium seems a bit high but honestly we would need to see the books of every carrier to be able to even begin to make an educated guess on this.

I think the more expensive carriers build the additional fall off into their costs.

Less policies on the books but higher priced policies = happy share holders.

 

[Green50]

Out of all my carriers KSKJ has the highest persistency. It is close to a 10% difference.

 

[Life Hawk]

Depends on the client Life Hawk. Some people will be thrilled if you save them $10 a month, some if you can save them $20 a month. It depends on each individual.

So you are referring to replacements not original plans... to which I would say of course (little bit a Jim Rohn in my voice )

Who wouldn't pass up on a sale... not sure of any moral high ground there...

Don't mind me... I like to stir now and then.

 

[goillini52]

I like to stir now and then.

And that's one of the reasons I like you. You should do it more often

 

[Thedude]

I don't think price is as big of a factor as you'd think. Only way to know is to have all the numbers though

 

[Life Hawk]

I don't think price is as big of a factor as you'd think. Only way to know is to have all the numbers though

Amazing how what causes you issues when your a young agent... still gives you a fit when you get older... sometimes we can't get things that really don't matter out of our head.

Thought I would add this... a Lincoln agent clean sheeted a client of mine and I caught up to him to day... replaced his clean sheet app with new one at almost $15 increase... don't mess with my clients... I'm like a mother with her cubs...

 

[goillini52]

I'm like a mother with her cubs...

So THAT's why you drink your coffee like a girl.

 

[NSRH]

I don't think price is as big of a factor as you'd think. Only way to know is to have all the numbers though

I tend to agree. It appears to me that agents are the ones shopping prices, not customers.

 

[Life Hawk]

I tend to agree. It appears to me that agents are the ones shopping prices, not customers.

Are they trying to make up for their lack of client service?

 

[Newby]

Are they trying to make up for their lack of client service?

In what ways is your service different if you sell a lower priced plan compared to when you sell a higher priced plan? Do you do things differently?