Why Don't P&C Agencies Like Life Ins Guys?

[NinjaNic]

Disclaimer: Not trying to sell anything--just trying to learn more about the agents that I want to do more business with.

**Thread assuming agents not selling life insurance.

I work relationships with agents and agencies for my IMO/BGA all day long. We work with several P&C agencies to write all of their life business for them--and pay them a referral that is linear to the commission rate on the policy. In some cases, referral fees paid out have been substantial--AND YET P&C agents are leery to open up their books. I have tried to get access to agents auto only book--what I understand to be bottom of the barrel business and no luck. My agency offers web platforms, real-time status of their cases, a call center dedicated to their PC client business--all of the amenities that you think would equate $$ signs in an agents pocket.

real case: assisted the P&C agent with a life case that the client actually initiated. The client bought their policy, we sent the agent an almost $6000 year for the referral. It was the only case he did---AND HE MADE $6000 FOR 15 MINUTES OF TALKING OVER THE PHONE WITH HIS OWN CLIENT..

SO, here are my questions;

Why do P&C agents not want to work with Life agents?
What are the top hurdles and concerns?
Understanding that P&C agents with their clients relationships long term are more important that immediate commission--is it too much to think that adding a 3rd line of coverage would increase retention?

Please let me know your thoughts on this. I am eager to learn more about P&C agents and how to better serve them in the future.

Thanks in advance.

 

[HealthGuy]

P and C agents want to write the life when and where they can. Simple answer: they don't want you to write it.

 

[NinjaNic]

P and C agents want to write the life when and where they can. Simple answer: they don't want you to write it.

Yes, I understand that. I am referring to the P&C agents that do zero life business, are not life licensed etc. I understand that if they wanted to write life, they would--BUT--is increasing retention (even if using a 3rd party to write the case) important--or do they want to keep that client as auto/home/commercial solely?

again, just trying to wrap my head around it.

 

[Full Throttle]

Fear. Have you heard the saying, "don't **** where you eat"?

 

[arnguy]

I heard from a P&C agency that it's the body odor of life agents. Just sayin'.

 

[Bertolinoins]

The answer is that they don't trust you yet. You have not earned their trust. The reason P&C agents don't like/trust most life agents is because they have had some sort of shady dealing with a life agent at one point in their career.

My example and why I got my life license and handle it on my own now:

I have a large contruction company that was going from two owners to an ESOP. Buy/sell covering both owners for $50M each for a 20 year term as recommended by their attorney and CPA... they were not looking for options and they knew what they wanted. This was set on a tee and all the agent had to do was bring in a few competitive quotes and get one of the guys through UW. I went to one of the top life guys in my area on the recommendation of the agency owner I was working for at the time. Instead of doing what was asked of him and taking the $91K commission he puts on his "advisor" hat and tries to sell my clients whole life policies with premiums in the $300K+ range. The client shut down the meeting and threw him out of their office The clients knew what they wanted but this joker got greedy.

Luckily I am extremely close with this client and we were able to patch things up but many clients would have walked away and found another P&C agent while taking the $40-55K per year in commission I earn from that account with them.

What you are asking for is to have access to somebodies life work and you have not yet proven that you can be trusted or that you can perform. The risk for most of us is not worth the reward. The lifetime value of even a small client is often worth much more than the few thousand dollar commission you can make on their life case. Instead of walking in the door and asking for access to their entire book of business... why not try to create a friendship first and demonstrate your abilities on the few accounts they do refer early in the relationship. The difference in mentality between P&C and Life is part of the problem... Life guys need to be in a rush to close business ASAP while P&C guys are not comfortable moving at that pace.

 

[NinjaNic]

The answer is that they don't trust you yet. You have not earned their trust. The reason P&C agents don't like/trust most life agents is because they have had some sort of shady dealing with a life agent at one point in their career.

My example and why I got my life license and handle it on my own now:

I have a large contruction company that was going from two owners to an ESOP. Buy/sell covering both owners for $50M each for a 20 year term as recommended by their attorney and CPA... they were not looking for options and they knew what they wanted. This was set on a tee and all the agent had to do was bring in a few competitive quotes and get one of the guys through UW. I went to one of the top life guys in my area on the recommendation of the agency owner I was working for at the time. Instead of doing what was asked of him and taking the $91K commission he puts on his "advisor" hat and tries to sell my clients whole life policies with premiums in the $300K+ range. The client shut down the meeting and threw him out of their office The clients knew what they wanted but this joker got greedy.

Luckily I am extremely close with this client and we were able to patch things up but many clients would have walked away and found another P&C agent while taking the $40-55K per year in commission I earn from that account with them.

What you are asking for is to have access to somebodies life work and you have not yet proven that you can be trusted or that you can perform. The risk for most of us is not worth the reward. The lifetime value of even a small client is often worth much more than the few thousand dollar commission you can make on their life case. Instead of walking in the door and asking for access to their entire book of business... why not try to create a friendship first and demonstrate your abilities on the few accounts they do refer early in the relationship. The difference in mentality between P&C and Life is part of the problem... Life guys need to be in a rush to close business ASAP while P&C guys are not comfortable moving at that pace.

That is great information. I 100% agree with you on your broker reference, with the WL etc.

Is there a piece of business that P&C agents have that is lower value--that can be started with? I assume auto-only clients are less value that Commercial etc...

The process that I promote with the P&C agents now is integrating with their office, using their CSRs to drive the business and doing everything on a web platform to promote efficiencies and data integrity. As the life agent with our P&C agents now, we are simply a fullfillment center using our IMOs direct marketers resources selling primarily Term and GULs.

Would a process of selling this concept to P&C agents work IF--it were spelled out in black and white that I/we will do everything to a T--and advise their clients that we are separate BUT connected. "ABC Agency--does an excellent job handling all of your Auto/home and commercial--they are having me contact you to handle all of your Life, Disability etc because as part of their service, they wanted to make sure you were covered from all angles."
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Also, to edit: our current business is primarily processing $1000/annual term cases for PC's clients.

 

[Bertolinoins]

Are you with QuickLife?

 

[WinoBlues]

I did not read the full thread. This may have been covered.

I have several P&C guys that I work with. I have always started as the go to guy for their "uninsurables", Then for low cost term.
Helps that I am not P&C licensed any longer. And I always send them an email on what I did.

just my 2 cents

 

[JFBAgent]

Too many scuzzy insurance agents out there...we all know the stories. That's why their isn't a lot of trust. P&C guys know that anybody can get a license and sling term policies out of their home.

They are looking for that legitimate producer with a history in the business, knowledge, but above all else, someone that has a honest, clean cut vibe...only 1 in every 10 life agents fit that.

Problem is, a lot of those 1 in 10 agents already have a marketing plan or are established. So its the 9 out of 10 (the baggy pants life insurance agent, as a friend calls it) that are often out looking knocking on the p&c doors.