Closing Rates Captive Vs Independent

[DSInsurance]

Hello everyone I am a personal lines agent only,

My question is I know rate increases are part of the business. I am a captive agent only been around 3 years now and we have always been a bit more expensive than the competition. My closing rates have really dipped lately, and now a new rate increase is on the horizon with my company. With it getting harder and harder to hit my personal goals, and soon what my company expects of me. Is it better to start looking into the independent side of things, so I can shop the rate around?

What is a P & C Independent agents closing rate? Thanks for any help, I have just been frustrated with being 100+ dollars more annually on a lot of my quotes. I like the support from a captive agency, but the frustration of coming in so much more expensive is really starting to get to me. Thank you for any advice.

 

[Bertolinoins]

There is no standard closing rate for independents or captives. The more aggressive you are and the harder you try... the lower the closing rate will be. If you sit back and just work referrals and very warm leads then your closing rate will be high... but your overall numbers won't be very impressive. It is kind of like a skier that never falls... it is because they never push themselves. If your area is very price sensitive and $100 is a deciding factor... I suspect you would want to be a independent agent. In wealthy areas where a few hundred dollars are not a big deal, it is nice to be representing a household name with a several hundred million dollar advertising budget.

 

[Mark]

It all depends on the agent. Does not matter what type he sells or which he is.

 

[djs]

I think a lot of agents run into problems in year 3. I know I did. I think the mental attitude changes and the office changes due to a lot more service work going on.

Step back for a second and really wonder if you are doing the same thing before you blame the carrier. It's likely to be a bit of both, you and the carrier.

It's easy to think the grass is greener..... You may be a bit to much focused on what grass has been fertilized more recently..... There is a reason captives have a large percentage of the personal lines market. Being independant has its rewards, but being captive has other rewards. Both also have thier problems.

Your marketing method will determine the price sensitivity. For instance, internet leads are frequently far more price sensitive than new home buyers. Name brand will get you value well beyond $100 a year when working with the right market. It is a matter of alignment of your market to your product, but that is true captive or independent.

Dan

 

[DSInsurance]

Thank you, I think you may be a bit right on all aspects. I think I have had a hard time overcoming the price hurdle lately. Any advice, and I really do try my best when selling my self and what i bring to the table. Unfortunetly under self evaluating I have seen me doing this a lot more over email compared to phone, could that be the reason?

 

[djs]

My experience is the more direct personal interaction you have with a prospect, the less the price sensitivity (within strict limits). Email is not very personal, making it much easier to be ignored by a prospect.

I run into this problem as well. Email isn't time sensitive so its easier to have a larger volume of stuff happening via email, but its inpersonal, making closing ratios go way, way down. You want to increase volume, but there are only so many hours in the day.

Dan

 

[Schwetty]

i am a captive agent who has had many fellow agents from my compnay go IA recently. They all say they are writing/closing more business mainly due to the fact they have more than one option for the client to pick from. I am in the process of possibly going IA as well and will share my findings when I cross that bridge

 

[the mayor]

I think a lot of agents run into problems in year 3. I know I did. I think the mental attitude changes and the office changes due to a lot more service work going on.

I'm heading into my 3 rd year...and have to agree with you.
I had to do a reality check on myself and go back to what I was doing when I first started to break the funk

 

[Guest]

When I quit Farmers, (captive) I bet i was writing 1 out of 20 quotes.

As an IA, I write 8 out of 10....

NUFF SAID

 

[CaptiveGuy]

When I quit Farmers, (captive) I bet i was writing 1 out of 20 quotes.

As an IA, I write 8 out of 10....

NUFF SAID

It truly is a great feeling. If you work as hard as you did when you were captive as an IA you will do well.

This forum opened my eyes months ago.