P&C Agent Asking Health Agent Advice

warnerins · 12-19-2008, 08:11 AM

Health Agents, I recently responded to another thread with this:

[COLOR=navy]Here is a twist.[/COLOR]

[COLOR=navy]I am always trying to revamp the agency and try new things. As a matter of fact I began a great relationship with a life guy (12 years with NYLIC) and we have accomplished some amazing production over the last year. It took us a month or so to get my corporate NYLIC license and licensed with his other carriers and then it was on...[/COLOR]

[COLOR=navy]He has total access to my 3800 names and I have total access to his 2700.[/COLOR]

[COLOR=navy]I was actually thinking of starting a thread asking you health guys who, how and where I should start to prospect for a willing health agent in my area.[/COLOR]

[COLOR=navy]One thing that I have learned over the years is that I do what I do very well. However I'm the first to admit that when I try to spread myself to thin it is the client that suffers or simply goes to another life guy somewhere else, or another health guy somewhere else, or another whatever somewhere else.[/COLOR]

[COLOR=navy]Heck, if I can provide that product line to my client with an agent that specializes in that type of coverage (right in my office), I will take the split in commission every time rather than send them down the road.[/COLOR]

[COLOR=navy]It ties the client to our agency (with the cross sell) and provides better retention.....The client gets better service, I make more money. WIN-WIN[/COLOR]

[COLOR=navy]To that end. If there are any health agents (in Albuquerque) that would like to engage in talks about this type of relationship. 505-899-7000[/COLOR]

[COLOR=black]I have spent months researching "specialization" as an agency model. I have a csr worth her weight in gold, my wife handles all billing and claims processing, I have my life and investment agent, I have recently hired my agency contact rep (this person does nothing but market for the agency. including - cold calls, e-relations, cross sell appointments, etc...) Next on the list is to actively pursue is a commercial agent and a health agent.[/COLOR]

Based on the responses from the other thread, it looked as though you health agents think this may not be a good match or something worth pursuing.

Any advice on this would be much appreciated

somarco · 12-19-2008, 02:13 PM

A marriage of P&C and life, health agents is not easily made.

Life sales are certainly based on relationship, health can be (and usually is with a good agent) but both of these can be just a matter of number crunching.

P&C sales, at least personal lines, is mostly a transactional relationship. They have a need, you have the price, you get the client.

Commercial lines can be price driven as well (and many times is, particularly WC) but can also be driven by relationship, especially if the client needs, and the agent can provide, consultative advice.

It is hard to bridge that gap. I have seen it work a few times, but rarely. A good friend is a life & health agent housed in a P&C shop. Been there 20 years or so. That is highly unusual.

A few here in Atlanta have lasted that long but eventually they split. Most last a few years at best.

I worked in a P&C shop for less than a year. They asked me to come in and set up a life, health side. More frustration than it was worth.

I left, a new guy came in (in spite of my warning). He left 4 months later. They had a succession of life guys before the agency finally sold.

It is more a mismatch of personalities and style of sale more than anything.

Great if you can make it happen, the worst thing in the world if you can't.
- - - - - - - - - - - - - - - - - -
A marriage of P&C and life, health agents is not easily made.

Life sales are certainly based on relationship, health can be (and usually is with a good agent) but both of these can be just a matter of number crunching.

P&C sales, at least personal lines, is mostly a transactional relationship. They have a need, you have the price, you get the client.

Commercial lines can be price driven as well (and many times is, particularly WC) but can also be driven by relationship, especially if the client needs, and the agent can provide, consultative advice.

It is hard to bridge that gap. I have seen it work a few times, but rarely. A good friend is a life & health agent housed in a P&C shop. Been there 20 years or so. That is highly unusual.

A few here in Atlanta have lasted that long but eventually they split. Most last a few years at best.

I worked in a P&C shop for less than a year. They asked me to come in and set up a life, health side. More frustration than it was worth.

I left, a new guy came in (in spite of my warning). He left 4 months later. They had a succession of life guys before the agency finally sold.

It is more a mismatch of personalities and style of sale more than anything.

Great if you can make it happen, the worst thing in the world if you can't.

djs · 12-19-2008, 03:32 PM

Somarco - much of what you say is true of any agency producer relationship, not specific to health insurance.

Contrary to your statement though, I have found most P&C agents have more contact and a better relationship with their clients than health agents. Nothing is written in stone here though. Of course, a lot of P&C agents have never met their clients nowadays, but the same can be said about health agents.

It's never been real clear to me why the average health agent would want to work for the average P&C agent. There are only 2 things that usually drive this, one being something of a regular salary (and they function as a customer rep as well) and the other is access to a book of business / referrals.

At the same time, referring out health clients is a bad idea for most P&C agents. It's another person dealing with my client, who may develop other relationships and have a different P&C agent marketing to my client. I've seen this happen a few times. Ouch!!!! Yeah, they all say they won't do this, but 6 months later, they forget where the client came from.

Tim has the right idea, if you can find the right person, keep the business in house. Of course, you have to have a critical mass of business to do this, probably not worth it when you are only doing 2 - 3 individual plans a month.

Dan

warnerins · 12-19-2008, 04:33 PM

So, I guess the consensus from both of you is telling me to avoid this relationship and maybe refer the business out?

I am not one to try and plug the square peg into the round hole but I also enjoy the challenge of "It can't be done" (not that either of you said that).

May look into hiring a csr that specializes in health, maybe not....

Thanks

djs · 12-19-2008, 05:03 PM

I guess it depends how much business you are talking about.

P&C agents are usually ideally setup for this, with staff and office space. But then, you have to look at it as a profit per desk thing. Would having another commercial producer or personal lines producer net YOU more or less money than bringing in a health producer. Will selling health increase your retention? Will it bring in new P&C clients?

My experience is I've never sold a health client P&C policies later, but I've sold many P&C clients health policies later. Of course, this is a bit unfair, I don't market health actively as I do P&C, so the book is a bit skewed towards this answer and outcome.

Basically it boils down to if you can find the right person, a health producer will do well. As Somarco pointed out, it can be hard to find that 'right' person.

Now, I think you and I share some of the same philosophy about once you have a client, you are the 'insurance guy', which means despite everything I said above, I'm going to hire a producer / marketeer / csr for health (and life) probably mid-2009. I'm working on getting a commercial producer up and running first.

Dan

warnerins · 12-19-2008, 07:38 PM

Go Dan Go....

Have you read the Troy Korsgaden book "Power Position Your Agency" Excellent read. Don't agree with the cold call technique to business owners. But the ACR position is "Spot On'" with what I am trying to accomplish.

Don't bother getting the CD for ACR Training. 3/4 of it is cold calling for cross selling life. Gets a little redundant.

I think the position about annual reviews is % accurate also.

Good Luck, Have Fun

djs · 12-20-2008, 01:16 PM

Have you read the Troy Korsgaden book "Power Position Your Agency"

I have it sitting on my desk.

For those who might be interested in the book, it's a pretty cheap buy, but it is targeted primarily at P&C agencies. Most of the concepts would apply to health as well, but not quite as good.

90% of it is common sense stuff, but put in a convincing way from someone who did it.

Dan