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Captive Insurance Agents – How to Keep Clients in THIS Economy

Blood in the streets. Carnage. Everyone losing their home, job or business. That’s about all we’re hearing, right?

And let’s face it – these are hard times to be an agent. Even the die-hard, happy-go-lucky optimists are probably questioning there insanity a bit.

How Should I Be Responding to The Current Economy?

First, we’ve got to be honest. These are some challenging times. The very best agents right now aren’t pretending the storm clouds don’t exist, but they are looking for silver linings, and they are planting crops.

They’re asking themselves a smart question, and it’s the very best question that you can be asking yourself right now.

Here’s how I learned it: I was 20 years old, sitting in a huge arena listening to Zig Ziglar for the first time. The smell of burnt popcorn and cheap hotdogs filled the air, but I barely noticed it.

I’d heard people mention the WIN Principle before, but for the first time I actually got it. In case you haven’t heard, W.I.N. stands for

What’s Important Now?

And that’s the question for you to be thinking about in your agency, especially with everything going on in the economy as a whole and at captive companies corporate offices.

As you know, it’s more important now than ever to keep the clients you’ve got in place. And let’s face it, the timing couldn’t be worse for that.

Between rising premiums and the recession, even long-time clients are looking to save money, and unfortunately often the answer they come up with is in leaving your agency and going with an independent, or worse, some discounter. (I want to name a few disreputable ones right now, but I’ll restrain myself… )

Here’s the Big Truth About Retention

Some people are going to be leaving your agency. There’s about 10% of the population that must always go with the lowest price option. If they have a choice between Campbell’s® soup and generic brand, they have no choice. They must buy the generic to save the extra 5 cents a can.

Now it’s OK to feel bad for these people, but we should not be choosing them as clients. (I learned this the hard way myself, trying to sell to people who couldn’t have afforded to say yes no matter how good a sales job I did!)

But some of your clients who weren’t in this situation are in this situation now because of the economy. So these people are likely going to leave your agency.

So What’s a Smart Agent Doing to Keep Clients Now & Who Are They Focused on Keeping?

Focus Number One – work to keep your multi-policy clients. They spend more money with you and for every one of them that leaves your agency you lose at least two policies. So focus at least 85% of your retention effort on them.

Calls, emails, letters, postcards, whatever it takes to keep them. This is the last place in your agency now that you want to be lazy or cheap, even though revenue is down and agency expenses are rising.

Every dollar you spend to keep current clients will come back two to three fold in keeping your retention up. As you know, retention is an important part of your RFG score and Expected Results, and obviously it’ a huge factor in your income because of renewals.

The Smartest Move You Can Make Now Is Getting an “Iron Cage” Put Around Your Current Clients

Obviously this sounds like a lot of work, and it is. The great news is that you can outsource your retention programs. You and your staff don’t have to be the ones putting in the long hours and going above and beyond to keep clients extra happy so that the best ones stay even with rate hikes. Whether you decide to out source it or do it in house, putting systems in place to keep your very best clients is what’s important now for your agency and for your family’s financial security.

Captive Insurance Agents

Captive insurance agents are insurance agents who work exclusively for a single insurance company or group of companies. Unlike independent insurance agents, who represent multiple insurance carriers and can offer a range of insurance products, captive agents are employed by and dedicated to promoting the policies of a particular insurer.

Here are some key characteristics and aspects of captive insurance agents:

Exclusive Representation: Captive agents work exclusively for one insurance company. They are contracted to sell insurance policies and products offered by that particular company.
In-Depth Knowledge: Since captive agents focus solely on the products and policies of their parent company, they typically have in-depth knowledge about those offerings. They can provide detailed information and answer specific questions about the company’s insurance products.
Company Branding: Captive agents are often associated with the brand and image of the insurance company they represent. They may wear the company’s logo, use its marketing materials, and operate under its established brand identity.
Limited Product Range: Captive agents can only offer insurance products provided by their parent company or group of companies. They may have access to a variety of insurance policies, such as auto, home, life, or commercial insurance, depending on the company they represent. However, they cannot offer policies from competing insurance companies.
Sales Targets and Incentives: Captive agents are typically subject to sales targets set by their employer. They may receive commissions and bonuses based on the policies they sell or the premiums generated. This structure incentivizes captive agents to meet sales goals and promote their company’s products.
Training and Support: Insurance companies often provide training and support to their captive agents. This can include product training, sales techniques, customer service skills, and ongoing professional development opportunities.
Exclusive Clientele: Captive agents primarily serve the customers of the insurance company they represent. They may develop long-term relationships with clients and provide ongoing support, such as policy renewals, claims assistance, and policy adjustments.

It’s worth noting that while captive agents offer the advantages of specialized knowledge and brand association, they may have limitations in terms of product choices and pricing options. If you’re looking for a broader range of insurance options, independent insurance agents who work with multiple insurance carriers might be a better fit.

Insurance

Insurance is a way to protect against financial loss. It involves paying a premium to an insurance company in exchange for the promise of payment or reimbursement for certain losses or damages. Insurance can help individuals, businesses, and organizations manage risks and protect against unexpected events.

There are many different types of insurance available, including:

Health Insurance: This type of insurance helps cover the cost of medical expenses, such as doctor visits, hospital stays, and prescription drugs.
Life Insurance: Life insurance provides a lump-sum payment to the insured’s beneficiaries in the event of their death. It can help provide financial security for loved ones and cover expenses such as funeral costs and outstanding debts.
Auto Insurance: Auto insurance provides coverage for damage or injury caused by a car accident. It can also provide coverage for theft, vandalism, and other incidents.
Homeowners Insurance: This type of insurance helps protect homeowners against damage or loss to their property, as well as liability for injuries or damage caused to others on their property.
Renters Insurance: Renters insurance provides coverage for personal property and liability for renters.
Business Insurance: Business insurance provides coverage for various types of risks that businesses may face, such as liability, property damage, and employee injuries.

Insurance policies can vary widely in terms of coverage, exclusions, and premiums. It’s important to carefully review any insurance policy before purchasing it and to understand what is covered and what is not.

Insurance companies use various methods to assess risk and determine premiums, including actuarial science, statistical analysis, and underwriting. Factors such as age, health status, driving history, and location can all impact insurance premiums.

In conclusion, insurance is a way to protect against financial loss and manage risks. There are many different types of insurance available, including health insurance, life insurance, auto insurance, homeowners insurance, renters insurance, and business insurance.

It’s important to carefully review any insurance policy before purchasing it and to understand what is covered and what is not. Insurance companies use various methods to assess risk and determine premiums, and factors such as age, health status, driving history, and location can all impact insurance premiums.