Getting a Group Health Client to Commit

Labman · 11-21-2009, 09:13 AM

I'm doing pretty good at getting appointments, getting a census and making a presentation to small business owners. But I have a long way to go in closing the deal. I continously get my butt kicked my the incumbent agent, probably more so out of loyalty by the business owner than any other reason.

My lack of a good closing technique is driving me crazy as I know some of these agents aren't doing a good job, but of course the business owner doesn't realize that. I know I need to be more assertive, but I'm finding it hard to get a commitment tactfully. So that is why I'm asking you guys for some good strategies to deal with the loyalty issue. Thanks!

djs · 11-21-2009, 10:27 AM

Closing group always sounds easier than it is. Also, keep in mind it may take several cycles to close them, not just the first renewal that comes up. It is a slow, patient business.

Now, you have to be honest with yourself as well. What do you offer that the current broker doesn't? Really? Remember, every agent tries to do a good job. Yes, I know some don't, but they don't survive very long. Your statement that you can take care of them better simply doesn't mean anything, unless you can back this up.

What I recommend:
- Approach it from a relationship, not a sale. Realize only a small percentage will close this year. Keep notes, stay in touch throughout the year (send thank you cards, holiday cards, etc), and make sure you have permission to come back next year.
- Have a document, basically a resume for your agency, that talks about you and the 5 reasons they should do business with you. Have this printed on nice paper with a high quality print. Include pictures. Remember, this represents you. For some reason, people believe things more when you tell them and show them the same thing in writing (a written guarantee type of mentality, just don't say those words).

Group is tough. Personally, I deal with small group, under 10 lives, where competition tends to not be as heavy. This blends well with my P&C business. Unfortunately, lately, this has become a very sought after market and the competition has stepped up significantly.

Dan

arnguy · 11-21-2009, 01:25 PM

Pointing a Glock 9mm at the prospect's head helps close the deal.

hockeyday · 11-21-2009, 01:53 PM

Ask up front are you willing to change agents, if you don't get a firm YES, then move on, they will take your ideas your price and gift wrap them to their current agent,

Labman · 11-21-2009, 06:12 PM

Being new I've tried hitting on every size business from 5 to fifty. None of which seem to be "neglected". Now, convincing the business owner that their long time agent isn't doing the best job possible has been extremely difficult for me. My closing skills must really suck!

YouGotMyMoney · 11-21-2009, 07:28 PM

Why not try marketing for individual sales vs small group?

bill3173 · 11-22-2009, 07:59 AM

Originally Posted by hockeyday

ask up front are you willing to change agents, if you don't get a firm YES, then move on, they will take your ideas your price and gift wrap them to their current agent,

Good advice. Recently, I had a small group inquiry(from the owner), and the complaint was they weren't happy with their current agent, and would I prepare some quotes for them, etc.

I mailed them an AOR Letter, with a return envelope. After a week, I called and the admin. asst., that was so excited for me to be their new agent, said that "after discussing it with the boss, they'd rather me send some proposals first, they weren't ready to change agents just yet".

Naturally, I thought, Aha, you are not ready to change agents, just plans. Your agent is lazy so you want me to do the work for him, no thanks, why don't you shiot and fall back in it. Bye.

hockeyday · 11-22-2009, 09:34 AM

Right on bill3173, that how i feel, if they won't give you the AOR move on, they like golfing and bowling with their lazy agent, but won't tell him to get off his A## and work for them

alphawave2k · 11-22-2009, 10:29 AM

Guys, excuse my extreme ignorance in group parlance, but what is an "AOR" letter?

djs · 11-22-2009, 10:31 AM

Why would someone sign an AOR if you have done nothing for them yet? What have you done to earn their business?

I understand the frustration with taking the time to run quotes and getting nothing out of it. To me that is part of the sales cycle though.

Dan

Full Throttle · 11-22-2009, 10:41 AM

I ask for committment right up front, many times on the initial cold call. Group is a take it or leave it business. If you do it right, they will respect you for asking up front, plus it takes the pressure off for an issue that eventually has to come up anyway. Leave it to the end or try to ignore it, you deserve what you get.

Labman · 11-22-2009, 11:01 AM

An AOR is a agent of record letter. What strategies are you using to make yourself stand out from the incumbent? That is my biggest issue, is finding a way to be different.

erikcg123 · 11-22-2009, 11:06 AM

Aor????????

djs · 11-22-2009, 11:07 AM

Yes, but that commitment probably isn't signing an AOR, it's just a verbal & mental commitment.

Use of tie-downs is a good thing.
- - - - - - - - - - - - - - - - - -
An AOR is a letter from the client assigning you as his broker (agent) of record. You own the policy at that point.

Some carriers permit this, some don't. Check with your carriers on how they treat these. Generally, they frown on them, but don't worry about them to much. In some cases, the current agent has to sign off on it (yeah, right). Every carrier is different, you have to check with them.

It's not as easy as it sounds, but great when you get one. They tend to be easier if it is a house account for the carrier, at least that is my experience.

I always ask for these. I don't push it very hard. I try to get the entire account to make it worth my while (health, BOP, auto, workers comp, 401K, etc). I will take them one thing at a time though.

Dan

bill3173 · 11-22-2009, 02:26 PM

Originally Posted by hockeyday

right on bill3173, that how i feel, if they won't give you the AOR move on, they like golfing and bowling with their lazy agent, but won't tell him to get off his A## and work for them

Sounds like you know what's up. A lot of doing this biz correctly is not ending up on the wrong side of the exchange, particularly if you are busy.

I went to a life appt. and when I got there the lady already had an application, with a carrier that I happened to be appointed with, from another agent. It was completely filled out, but he didn't have his name or agent number on it(big mistake). I signed it and sent it in, and placed the client.

You have to use a great deal of discernment, either natural or pick it up somewhere, or you'll pad someone else's wallet.

The potential group client that I referenced earlier would have shoplifted the proposals and taken them back to their agent, no doubt in my mind. I wanted to laugh in the admin's face when she told me to get them some quotes, they weren't ready to change agents.

hockeyday · 11-22-2009, 02:58 PM

Why would they sign over to you AOR, well because they have not seen their agent in 2 years, they call him and he nevers call back, I'm sick of people using my plan and gving it to their current agents , I write alot of HRA and some agents can't spell HRA

YouGotMyMoney · 11-22-2009, 03:07 PM

You don't work for free.

People for the most part can not be trusted.

Once they show they are serious, then you can get to work.

somarco · 11-22-2009, 03:30 PM

Asking for an AOR is just another form of commitment. Whenever I come across a prospect, group or individual major med, I always let them know I will be willing to work with them, but if it turns out what they have now is the best, I expect them to give me an AOR.

As I get deeper into it, if it looks like I will be spinning my wheels, I ask for the AOR before showing them what I have and making a recommendation.

Took an AOR on an individual with BX last month when it became fairly obvious to me I would not be able to move him due to health issues.

alphawave2k · 11-22-2009, 05:15 PM

Originally Posted by somarco

Took an AOR on an individual with BX last month when it became fairly obvious to me I would not be able to move him due to health issues.

This a a new idea to me, and way cool to learn. I have to ask then, if they are staying with the current carrier, and you have them sign the AOR, do you get the re-sign up commission?
Is there a standard form used for an AOR? What is the minimum detail needed to make this an official document. I would assume the client's signature and date are two of the key pieces of information. Is there some generic template for this?
Thanks for the lesson everybody.

somarco · 11-22-2009, 06:22 PM

I don't ask for an AOR unless I know I can get commissions. I can do that with H1, GR, KP and BX. Can't say about Cigna but doesn't matter much since they have been in the individual market less than 6 months here.

Aetna will allow you to be the new AOR but won't pay you a commission. If someone has Aetna and I can't move them I move on.

BX has a form. The rest use a letter over the insured's signature.