Who is Practicing this ?

[Scottyj]

So I have been getting smashed lately being the first sucker in the hole due to the fact many agents locally have decided that the later they can submit the quote the better chance they have at getting the business... This is mostly directed at the incumbents. A lot of these guys are waiting the last minute to quote making the client feel obligated to wait and then digging in on were the other agents are falling quote wise to tailor their quote to be the winning pick. Now this thread is a bit of complaining but most of the time I tell the prospect "hey I am not a coupon and if you are just planning on using my quote to keep your agent honest or lower your current rate with your agent, then I am taking a walk" I make it very clear that this quote is intended to write the business... Should I fight fire with fire and just be last minute as well ? any thoughts... i feel the last minute approach to be highly unprofessional and inconsiderate but for some reason they are conditioned to it and is working ?

 

[nyc2phi]

Commercial or Personal Lines ?

 

[Guest]

If you bitch at me or threaten or say that to me, as I client/prospect, I would kick your ass out of my business...

 

[Scottyj]

Commercial Insurance.... Thanks for your input RBA. To clarify I only bring this up when I have established some sort of relationship with the prospect. I am not saying this first thing off, haha. Though it feels like I need to with all the time wasters out there . Are you guys last minute Joes too ? or not ? what is your opinion... if agianst it how do you combat it ? If for it how do you justify it ? (i.e just too busy to update your acord forms and take 10 minutes to blast it off to all your markets, or are your underwriters the slowest things in the world etc.) I am just having trouble seeing any reasoning for this tactic other than forcing the prospect into a corner waiting on your quote and drastically diminishing the time in which a client has to make an educated decision. Usually they will just go with what they know even if it is a bit more because they dont have time to hear or learn the differences.
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I am really against it but I find more incumbents doing it especially with the economy. Its almost like a defense mechanism in retaining business. I am half way tempted by it myself however...

 

[greatfish]

Understand where you are coming from Scotty.

I was taught/trained to play the "last in game." Went away from it last year and was burned and lost a few a few deals as a result. So I went back to playing the game and making sure that I do everything in my power to maximize my opportunity for success including, trying to being last in, only proposing to the decision maker, and making sure to do an audit of the incumbent's policy.

Although we prefer to think, act, and be treated like insurance professionals that are providing a service much like their attorney or CPA, sometimes I/we forget that this is still sales.

 

[Scottyj]

Great Fish. I hear you. I want to do everything in my power to retain business and even more so to have a fair shot on new stuff. but its hard when they are sharing my numbers with the incumbent who will make last minute changes like deductables to beat me (just happened last week on a $7k auto policy)

Lets say I am not the last in, and I am not the incumbent... what are you guys saying to get the applicant to allow you to audit the options and see what you are playing with ?

You see I have learned that a lot of business owners are very tight liped with competing agents and will not give up premiums. Especially contractors...(live and die by the bid you know) the problem is I think a lot of business owners dont understand is we are not talking products and labor costs when we quote. I try to explain it this way and please let me know if you have a better way or idea. I tell people I respect that you would rather not share your premium with me and understand you feel it will force me to my best foot, However I can assure you I will always put my best foot forward... but if we leave it up to the underwritters definition of what competative is then you and I both know you are not going to get the best deal. If we have a number to drive the underwritter down to we will have a better chance at saving you money. I usually tell them to take their premium... multiply it by 15% and give me that number. I then tell them that is what we will shoot for. I then tell my underwritters to go shoot for another 5-10% less so that we can at least yeild a 20-30% savings on our quote.

 

[NCAgent]

Great Fish. I hear you. I want to do everything in my power to retain business and even more so to have a fair shot on new stuff. but its hard when they are sharing my numbers with the incumbent who will make last minute changes like deductables to beat me (just happened last week on a $7k auto policy)

Lets say I am not the last in, and I am not the incumbent... what are you guys saying to get the applicant to allow you to audit the options and see what you are playing with ?

You see I have learned that a lot of business owners are very tight liped with competing agents and will not give up premiums. Especially contractors...(live and die by the bid you know) the problem is I think a lot of business owners dont understand is we are not talking products and labor costs when we quote. I try to explain it this way and please let me know if you have a better way or idea. I tell people I respect that you would rather not share your premium with me and understand you feel it will force me to my best foot, However I can assure you I will always put my best foot forward... but if we leave it up to the underwritters definition of what competative is then you and I both know you are not going to get the best deal. If we have a number to drive the underwritter down to we will have a better chance at saving you money. I usually tell them to take their premium... multiply it by 15% and give me that number. I then tell them that is what we will shoot for. I then tell my underwritters to go shoot for another 5-10% less so that we can at least yeild a 20-30% savings on our quote.

Multiply by 85%, makes more sense. I know what you meant though.

 

[cottonland]

If you are the "first one to give your quote" then make certain it is by far the most professional. When i am the first one to present, i set the "bar" that the others have to meet. I have no problem doing this.

 

[Scottyj]

Multiply by 85%, makes more sense. I know what you meant though.

Exactly.. I am just backwards i guess. I tell them to multiply their premium by 15% and then subtract that amount from the total premium essentially the same but yours is easier and one less step. Thanks for pointing that out. I guess I like the hard way haha.

 

[cottonland]

Why are you focusing on premium and not value? If you provide no value, why woud anyone decide to change? I learned a long time ago if an insured will jump ship on his current agent for price, he will jump ship on me as well.