Insurance Agent Forum

[arnguy]

This may have been answered to some extent in prior threads on this subject, but I am seeking some in-depth advice. I have been selling health to groups in this market for years the old fashioned way, B2B (Belly to Belly). However, with gas prices going out of sight I am considered changing to an internet/telephone approach out of my home with no in-person contact. Most of my groups are sole proprietors, and 2 to 5 employee groups. Thoughts and advice are welcome will be appreciated..

[GreenSky]

I'm wondering if it would be easier to skip the 2-5 that want group plans and see what you can do with individual policies for the same people.

For groups that size, what percentage even have a group plan vs. individual? Individual should be relatively easy to sell on the via the phone. John P has made a career out of it.

Rick

[NewHealthStrategies]

I posted a similar questions somewhere in another thread a few weeks back and several folks.... Bob_The_Insurance_Guy and others gave the nod that they had been doing this for some time.

I am a believer that this is where the small group market is headed, and am doing more and more of it myself.... so in my opinion, you're ahead of the trend.

[somarco]

You can sell individual policies to groups of that size, and you can sell a group health plan.

All over the phone and by email, fax & USPS.

Most of my small groups are the result of someone, usually the owner or an owner's dependent, who is uninsurable. For them, group is the only option.

I have found it easier to replace a group plan over the phone than put in a new group (unless you have an uninsurable owner). When I get inquiries from someone who does not have a group plan, may not have individual policies (on themselves) it is usually a waste of time. Doesn't matter if it is over the phone or F2F.

They don't know what they want, they have no idea how much it will cost and they don't realize they will have to contribute to the cost of the employees coverage and maintain participation.

[wilkin]

I just wrote a two person group all by fax and phone. My plan replaced a BC plan written directly by the carrier.

I think it is just a change in mind set going from F2F to phone/fax/internet conferencing. I'm planning on doing more small groups this way.

[NewHealthStrategies]

Originally Posted by somarco

You can sell individual policies to groups of that size, and you can sell a group health plan.

All over the phone and by email, fax & USPS.

Most of my small groups are the result of someone, usually the owner or an owner's dependent, who is uninsurable. For them, group is the only option.

I have found it easier to replace a group plan over the phone than put in a new group (unless you have an uninsurable owner). When I get inquiries from someone who does not have a group plan, may not have individual policies (on themselves) it is usually a waste of time. Doesn't matter if it is over the phone or F2F.

They don't know what they want, they have no idea how much it will cost and they don't realize they will have to contribute to the cost of the employees coverage and maintain participation.

I would have to agree with Somarco on this.... I get 2-3 leads a week for businesses that are just looking to START an employee benefit program.

I've spent countless hours "educating" them only to have MOST of them do ...... here's a news flash...... NOTHING AT ALL!

BUT, BUT, BUT.... here is the silver linging. Over the last 2 years that I've been buying these leads, I have written at least 1 each quarter that paid no less than $5,000 in commissions. 1 was a 90 employee company, the latest was a law firm with 20 employees..... so my ROI is great.... but be prepared to kiss a lot of frogs to get that one that will pay well.

Hope that makes sense.

[arnguy]

Really appreciate the input, guys. Somewhere, sometime ago, someone (sorry about the alliteration) mentioned that a state DOI would frown upon replacing group with IF. I don't remember what state that was----and I am not sure about PA. Anybody in PA know the answer to this?

[somarco]

Hope that makes sense.

Where do you find your frogs?

[Bob_The_Insurance_Guy]

I do EXTREMELY well in the small (2 - 5) group market.

There is less education than you think. I have an online form I e-mail them to get an idea of what they, and their employees, are looking for.

Here's the form. Feel free to copy it.

I then find out if there are any docs that any of them demand keeping.

Then, based on their answers, and my knowledge of where they are, and what companies have plans that best suit their needs, I e-mail them a quote for ONE product, along with the brochure, Master and Employee apps, and a note, scheduling a Q&A session on speakerphone.

We have the Q&A, which takes about 45 minutes to an hour.

That's it!

Don't make it more difficult than it has to be. Here's what they want to know:

• Is there a doc in the network I like
• Is Dental/Vision covered
• What is the most I will pay for surgery
• If there is a pre-ex, how long will I have to wait to get coverage for it
• What's covered in my doctor visit
• Is there a way to go online, after hours or on the weekend, to see what is going on with the claims and so on.

I don't use any quoting software that compares side-by-side. The more information you give them, the more you confuse them. You guys keep thinking it's a waste of time, and I'll keep writing their business.

Thanks.

[Bob_The_Insurance_Guy]

Oh, and here's my script: (I don't mind sharing, since you guys don't want to fool with this market)

This is Bob Levine, I saw your company name and phone number on the Gwinnett new business listing. The reason for my call was simply to introduce myself, and to find out about your company.

I'm an insurance agent, and I work SPECIFICALLY with small business owners. I seriously doubt you were sitting by the phone, hoping an insurance agent would call.

Can you tell me a little bit about your business?

Do I have your permission to stay in touch on a monthly or quarterly basis?

Thank you. I'll let you get back to work.

[arnguy]

Great posts, Bob. I certainly am going to implement your method of working that small group market. I have had some groups that have stayed on the books for 20 years. Although the commission rate is smaller than IFP, the persistency rate is much, much higher. Most of the time the drop outs have been because the firm went out of business for different reasons and/or the death of the owner/proprietor. However, the renewals are like an annuity. My main concern is that as I have to travel farther and farther out in the Delaware Valley area, the cost of gasoline is a huge negative. I hope that I can replicate your success with your methodology. Thanks very much for your input.

[NewHealthStrategies]

Originally Posted by somarco

Where do you find your frogs?

I hang out at the strip clubs down by the Federal prison in the ATL... they're everywhere!

[bobson]

Originally Posted by Bob_The_Insurance_Guy

Oh, and here's my script: (I don't mind sharing, since you guys don't want to fool with this market)

This is Bob Levine, I saw your company name and phone number on the Gwinnett new business listing. The reason for my call was simply to introduce myself, and to find out about your company.

I'm an insurance agent, and I work SPECIFICALLY with small business owners. I seriously doubt you were sitting by the phone, hoping an insurance agent would call.

Can you tell me a little bit about your business?

Do I have your permission to stay in touch on a monthly or quarterly basis?

Thank you. I'll let you get back to work.

And then you follow up how???

[Bob_The_Insurance_Guy]

I follow up same as any other follow up. If I don't hear from them in a day or two, I call back. Or, if in the course of our conversation, they tell me when to call them, I do. Or, I ASK when a good day and time would be to follow up.

Not that difficult.

Or, I send them an E-newsletter or announcement via Email Marketing Software Solution - EliteEmail

Or, I send them an invitation to participate in a Web Conference I am conducting on Homepage - Vyew - FREE Anytime Collaboration and Live Conferencing™

[arnguy]

Originally Posted by Bob_The_Insurance_Guy

I follow up same as any other follow up. If I don't hear from them in a day or two, I call back. Or, if in the course of our conversation, they tell me when to call them, I do. Or, I ASK when a good day and time would be to follow up.

Not that difficult.

Or, I send them an E-newsletter or announcement via Email Marketing Software Solution - EliteEmail

Or, I send them an invitation to participate in a Web Conference I am conducting on Homepage - Vyew - FREE Anytime Collaboration and Live Conferencing™

More great information. Thanks again, Bob.

[ABC]

2-9 you can write over the phone all day long.
I have alot of clients that fall into this demographic.
I have written most of them over the phone.

Now if the client grows and gets to say 15-25 lives you better get out there to meet them and build a relationship.

[Delta76]

2-9 you can write over the phone all day long.
I have alot of clients that fall into this demographic.
I have written most of them over the phone.

Now if the client grows and gets to say 15-25 lives you better get out there to meet them and build a relationship.

Personally, I just don't understand why the 2-9 group is so shunned. Let's say I build to 100 groups averaging just five lives. That would be 500 employees covered, or in my state, $115,000 level renewals each year. As far as service, there would be on average 8 renewals each month. Very doable. The level commissions are great, but the real value of developing a relationship with these small groups is the opportunity for other business with the owners and their employees.

I'm not against groups over ten, trust me! In fact, I think the 10 to 20 market is a sweet spot and the work load is about the same, sometimes even less, than the micro groups.

[arnguy]

Originally Posted by Delta76

Personally, I just don't understand why the 2-9 group is so shunned. Let's say I build to 100 groups averaging just five lives. That would be 500 employees covered, or in my state, $115,000 level renewals each year. As far as service, there would be on average 8 renewals each month. Very doable. The level commissions are great, but the real value of developing a relationship with these small groups is the opportunity for other business with the owners and their employees.

I'm not against groups over ten, trust me! In fact, I think the 10 to 20 market is a sweet spot and the work load is about the same, sometimes even less, than the micro groups.

I agree. Just looking for a better way of doing it.

[ABC]

Originally Posted by Delta76

2-9 you can write over the phone all day long.
I have alot of clients that fall into this demographic.
I have written most of them over the phone.

Now if the client grows and gets to say 15-25 lives you better get out there to meet them and build a relationship.

Personally, I just don't understand why the 2-9 group is so shunned. Let's say I build to 100 groups averaging just five lives. That would be 500 employees covered, or in my state, $115,000 level renewals each year. As far as service, there would be on average 8 renewals each month. Very doable. The level commissions are great, but the real value of developing a relationship with these small groups is the opportunity for other business with the owners and their employees.

I'm not against groups over ten, trust me! In fact, I think the 10 to 20 market is a sweet spot and the work load is about the same, sometimes even less, than the micro groups.

With a 100 groups at that size your looking at about $200,000+

[Delta76]

With a 100 groups at that size your looking at about $200,000+

Maybe I need to move, cause here it's $115,000.