How is an unorganized pool of data in your files transformed into a systematic stream of active leads for Life production?
You want to avoid the pitfalls that many P/C agents have encountered -- pitfalls that have killed Life-sales operations. To build a successful, positive lead program, it's prudent to identify potential negatives.
THE NEGATIVES
- 'We don't have enough leads to keep a Life producer busy.' You want a steady stream of leads daily.
- 'Our files are not useful enough.' The name, address, and phone number of insureds are not much more useful than phone books, wedding announcements, new-business listings, or other traditional lead sources. Even birthdates from Auto dailies or mortgage information from Homeowners dailies aren't enough. To justify splitting commissions, Life producers need a stronger, more useful form of lead.
- 'Files are missing.' Life producers fishing through insureds' files for birthdates and other lead information usually spells bad news for all. If a file is missing or misplaced, the Life agent will be a suspect whether he or she is guilty. It's not worth it; the time spent fishing doesn't justify the thin value of information gained.
- 'There are no records of who was called and what transpired.' This can be serious -- even fatal -- to the agency. It's embarrassing for a P/C producer to be asked by an insured about the status of some Life business, when that producer doesn't even know the policy existed. It can be fatal for the agency to be unaware of Life business written on its accounts, and to fail to get its proper share of the commissions on that business -- and on referred and collateral business as well. Additionally, it's an E&O exposure.
- 'Searching for Life leads interferes with CSR and other operations.' Too often, CSRs are given Life-prospecting chores. They might recite a written text, conduct a questionnaire, or perform other time-consuming tasks in an effort to identify Life-lead situations. CSRs often protest that they were not hired for Life prospecting, feel uncomfortable with it, and resent having to make up their lost P/C work. And many insureds object to being 'used' by CSRs to create calls from Life agents, which they usually don't want anyway.
- 'Life-prospecting interferes with P/C producers' work.' In some systems, P/C producers must write lead information about prospects, turn that information over to a Life producer, and make calls with the Life producer. This ties up two professionals, the P/C producer and the Life agent, on one call. In most cases, only the Life agent's expertise is needed.
THE POSITIVES
- Your P/C agency enjoys a friendly, professional relationship with its insureds. Policyholders are not wary of your calls when they are offered on a service basis.
- Insureds have leverage in the agency. When they consider buying another policy from you, it's understood that fairness and satisfaction must be delivered, or else the entire line -- all policies, including Life, Health, and P/C -- might be lost. Life-only agents are not as likely to have that advantage.
- Files contain much information about each insured. You know not only personal and business data, but also life styles, bill-paying habits, driving histories, financial information, aspirations, plans, and much more, all useful in addressing the Life insurance needs of those folks.
- Your agency is a constant source of daily change in the financial conditions of your insureds. When an auto accident, burglary, theft, or vandalism occurs, you're the third to know (after the police are informed). If there's a fire, storm, or flood, you'll know. On the happier side, you're also among the first to know about the new car, the house expansion, new jewelry, fine arts acquisition, promotion, new baby or grandchild, new boat, vacation plans, or whether a child is going to college or getting married.
These events involve P/C insurance, of course. They also provide excellent leads for Life insurance. Good or bad, big or small, they involve a change in financial condition, which, in turn, is exactly what Life agents seek: To identify changing needs and advise how their products may serve.
There is no better source of Life leads than the P/C agency. Think about it:
No one else in town has such clients who enjoy your relationship and provide a front-line flow of developing information. Your agency is the source of exclusive, valuable Life leads.
A SYSTEM
Here's one way to set up a Life prospecting system in a P/C agency:
The need must be eliminated for P/C producers to identify Life leads. They'll miss too many leads, and that's not their area of expertise, anyway. This will eliminate the peaks and valleys of leads that occur when Life production depends on P/C producers. Of course, P/C producers bring in leads, but the system must flourish, even when they are cold on Life leads.
Do not leave things to chance -- or to anyone's feelings. Decide that every P/C transaction -- big or small, good or bad -- is in fact a sign of a change in the insured's financial condition, and by definition, that's a Life lead.
Develop a means of identifying each Life-lead situation -- each P/C transaction, in other words -- as it occurs. Do it in written form, so that each lead can be counted. Have CSRs identify each lead as it emerges, in such a way that it neither detracts from work nor annoys the insureds.
All this can be achieved in one fell swoop with a checklist of common occurrences in P/C account handling. Every time a CSR handles an account, he or she checks off the single (or major) thing done for the insured, identifies the insured, and keeps a copy. Other copies go to the Life producer and to the house file, respectively.
The CSR, then, is the source of Life leads in a routine, non-abrasive way. There is nothing to object to; each lead should take no more than 15 seconds. He or she doesn't need to know about Life insurance, nor even mention it. Rather, the CSR will be rewarded by (a) having greater job security in a healthier, more profitable agency; (b) enjoying more clout with P/C carriers because of the agency's increased Life production; and (c) optionally, being paid a finder's fee for resulting sales.
The lead forms come in pads or sets, color-coded to separate Personal Lines leads from Commercial leads. We suggest white for Personal, blue for Commercial.
PERSONAL LINES LEAD FORM
Client Name ________________________________________________
Address ___________________________________________________
Phone: Home _______________________________________________
Business ___________________________________________________
1. AUTO
[ ] additional
[ ] new
[ ] eliminate child as driver on account of marriage
2. BOAT
[ ] Accident coverage
3. HOMEOWNER
[ ] mortgage
[ ] building addition
[ ] additional location
[ ] selling house
4. FAMILY
[ ] parent or relative recently deceased
[ ] parent or relative recently hospitalized
[ ] new job
[ ] new baby or [ ] grandchild
[ ] any marriage or [ ] remarriage
[ ] divorce
[ ] active in charity, church, etc.
5. VACATION
[ ] estimated departure date ________________
6. CLAIMS
Auto [ ] Bodily Injury
[ ] Property Damage
[ ] Liability-non-Auto
[ ] Accident -- (non-Auto), first party
[ ] Fire, extended coverage
[ ] Crime
[ ] Hospital
7. [ ] TOTAL PREMIUM MORE THAN $2,500 per year
8. [ ] TAX BRACKET 28%
9. [ ] INSURABILITY PROBLEMS
[ ] uninsurable or rated in Life, Health
[ ] has a health problem [ ] insureds
[ ] in family
10. OUT-OF-DATE POLICIES
[ ] has Life policies five years or older
[ ] has Accident and Sickness policies five years or older
[ ] has Medical Expense policies five years or older
11. OTHER: __________________________________________________
COMMENTS:
DATE: __________________
Lead Originator: ___________________________________________