I Got a Commercial Lines Mentor! But He Gave Me a Homework...

[NCAgent]

Hey guys,

So I found a commercial lines mentor (of a bigger company) that does commercial P&C and L&H and financial advice. I'm totally new to commercial lines and the agent told me that in order to be with the company I can use leads provided but I need to prospect as well.

He also gave me a bit of a homework assignment (inadvertently) that I'm concerned about because I need to meet with one of his senior partners. Basically, I have to have some kind of strategy that I would use to prospect businesses around the area.

This is what I have so far but could anyone possibly add to the list? I've been in a call center as an insurance agent so I never had to worry about it thus far. The list is sorta generic right now but I don't know how to focus in anymore on it.

1) Yellow pages- It's enough to get some referrals possibly
2) Affiliate groups- I have several social groups and volunteer groups that offer a little bit of a unique position to try and target some business owners. I also have a few friends with family members that are operating their own businesses either at home or in an office.
3) Business-to-business walking- I'm pretty familiar with the healthcare industry and figured I would try to start there; doctor's offices, dentists, maybe some of the clinics or labs around the areas as well (I have a biology degree so I have a few things to talk to them about.) I'm not against holding cards with me and just passing them out to every business I see.
4) Going to the chamber of commerce and looking for leads there as well.
5) Targeting homes for sale and real-estate in order to get landlord/non-occupied home policies as part of the commercial lines.
6) Referrals from people who I sell personal lines policies to.

I guess here are a few questions that I have that can help me focus on a few other ideas that I have:

-Is there a way to tell when a current insurance company has a rate increase? Like if someone is with The Hartford and they have a 5% rate increase, is there a way for me to know The Hartford had that increase in the area?

-Is there a way to tell if a new business opens up or if the business/land was recently sold to someone?

-Where are some places or organizations that business owners/managers/decision makers frequent? I don't know how to golf

I'm not trying to take anyone's secret plans (not that you'd offer them to me anyway ) but any help would be appreciated. I'm trying to ask specific questions here in order to try and not come across as someone incompetent and unable to do the work for themselves. However, I have a little more on my plate breaking into this field despite having a new mentor along with other things going on.

If you would prefer to PM me for correspondence rather than on the thread, feel free to do so!

Thanks

 

[jhuang]

Your marketing plan should target an industry. Keep at that industry until you get comfortable. Since you mentioned healthcare, go for it. Learn what Doctor's office needs, especially the larger accounts and go from there.

Learning rates and their increases comes from experience. Talk to your mentor on which classes have the best rates.

Everything you mentioned in your list is fine, just keep it simple, don't over complicate your process but keep feeding your marketing.

Learn to play golf.

 

[djs]

The trick with commercial marketing is to take it industry by industry and then learn what is important to that industry.

To be honest, a lot of your ideas are ones I've done, they use a lot of time and yield little long term results. For example, the chamber of commerce is a great organization, worth supporting and being a member, but it's full of realtors and insurance guys. You'll have a hard time making much headway there. Still worth enrolling though.

Pick an industry, say restaurants. Go talk to every restaurant owner in town that will spare 15 minutes of their time. Find out what is important to them, see if you can get a copy of their current policy. Sit with your mentor, look for the gaping wholes in their policy. Go back to the restaurant owner with more information. The first few will be very, very rough, it will get better with time.

I recommend starting with an industry that you are not going to write much in, so you can learn a process.

Also, yellow pages are not a referral source. Its a cold call phone list.

Dan

 

[NCAgent]

The trick with commercial marketing is to take it industry by industry and then learn what is important to that industry.

To be honest, a lot of your ideas are ones I've done, they use a lot of time and yield little long term results. For example, the chamber of commerce is a great organization, worth supporting and being a member, but it's full of realtors and insurance guys. You'll have a hard time making much headway there. Still worth enrolling though.

Pick an industry, say restaurants. Go talk to every restaurant owner in town that will spare 15 minutes of their time. Find out what is important to them, see if you can get a copy of their current policy. Sit with your mentor, look for the gaping wholes in their policy. Go back to the restaurant owner with more information. The first few will be very, very rough, it will get better with time.

I recommend starting with an industry that you are not going to write much in, so you can learn a process.

Also, yellow pages are not a referral source. Its a cold call phone list.

Dan

Yeah I skipped a step in what I was thinking. Get business and then referrals, or ask if they know anyone interested if the owner's aren't. HUGE advice though, thanks. What do you recommend be the first thing to do in getting commercial experience? As if starting from square one with no prior commercial knowledge.

 

[djs]

Get a mentor, but you've done that step. He should guide you from there.

No straightforward answers because it varies depending on what you have access to. For instance, if you can write planes and are a plane enthusiast, that's a good way to go. Most people don't ever think about writing planes though.

Many write restaurants, offices and small retail to start, but you have to have someone show you how to get in the door, how to have a conversation with the owner, and learn what is important. In addition, you have to have a competitive product that offers the correct coverages. For instance, if you don't have a way to cover a walk-in refrigerator breaking down, its hard to talk to most restaurants. If you can't cover liquor reciepts in excess of 35%, then it limits who you can write, etc.

Dan

 

[BTFuzz]

I agree with all the feedback so far, especially finding a niche. For example, I used to be a contractor. Guess what type of commercial I write most of? You guessed it.

Pick an industry and try to dominate it. Get the carriers that want it and learn everything you can about your niche so when you prospect your chances of closing the sale are as high as they can possibly be.

If I have a contractor on the hook, he normally ends up in the boat!

 

[mmaedelins]

I agree with all the feedback so far, especially finding a niche. For example, I used to be a contractor. Guess what type of commercial I write most of? You guessed it.

Pick an industry and try to dominate it. Get the carriers that want it and learn everything you can about your niche so when you prospect your chances of closing the sale are as high as they can possibly be.

If I have a contractor on the hook, he normally ends up in the boat!

I'm also a new commercial lines agent. The first industry I'm targeting is auto repair and then I'll move into general contractors. Being someone who has been on both ends of the spectrum (the contractor and the insurance agent), what is your best advice on how to close on a contractor? Are they only about saving money in the end? Thanks in advance!

 

[mr_furly]

The trick with commercial marketing is to take it industry by industry and then learn what is important to that industry.

To be honest, a lot of your ideas are ones I've done, they use a lot of time and yield little long term results. For example, the chamber of commerce is a great organization, worth supporting and being a member, but it's full of realtors and insurance guys. You'll have a hard time making much headway there. Still worth enrolling though.

Pick an industry, say restaurants. Go talk to every restaurant owner in town that will spare 15 minutes of their time. Find out what is important to them, see if you can get a copy of their current policy. Sit with your mentor, look for the gaping wholes in their policy. Go back to the restaurant owner with more information. The first few will be very, very rough, it will get better with time.

I recommend starting with an industry that you are not going to write much in, so you can learn a process.

Also, yellow pages are not a referral source. Its a cold call phone list.

Dan

When you say do this...are you saying meet with them just to get to know them, their industry, and their business?
or approach them as an insurance agent that is looking to gain their business?

 

[mplsmm]

When you say do this...are you saying meet with them just to get to know them, their industry, and their business?
or approach them as an insurance agent that is looking to gain their business?

If he hasn't figured it out in 5+ years, he is probably a lost cause.