By George Dahlinger, CIC, Dahlinger & Co. Insurance, Nampa, Idaho
From AA&B February 1995
Idaho always has attracted its share of tourists. The state's many lakes, streams and national forests form a breathtaking vacation backdrop, and the famed resort in Sun Valley annually draws thousands of visitors.
In the last few years, people have discovered that Idaho is a great place to live, too. National publications, including Money magazine, have rated Boise, the state capital, as one of the nation's best cities to live in. Fed up with crowds and crime, big-city dwellers from the Northwest and California have migrated to the area, triggering a surge of commercial and residential development.
Here in Nampa, about 12 miles southwest of Boise, home sales boomed between 1992 and 1994, partly because of our proximity to the capital. Comparable homes in Nampa and Boise are priced about 10% to 15% lower here, so home-buyers with jobs in Boise were willing to trade a few extra minutes of commuting time for $15,000 in savings.
The ensuing demand for Homeowners insurance presented an excellent growth opportunity for our agency. Such opportunities can make agents nearly hyperventilate with excitement, which wasn't a reaction that would have been well-received in our 700-square-foot agency, where space was definitely a premium among our six employees. We had only one computer for agency management and two stand-alone stations to prepare quotes.
We may not have been comfortable, but we wrote about 120 new Homeowners policies per month by establishing a lead-generating network with real estate agents and other professionals in the home-buying industry. During the boom's three years, we increased our book of business nearly 70%, built and moved into a more spacious building on the busiest street in Nampa, and installed a networked computer system with terminals on all employees' desks.
We wanted to introduce our agency to prospects as soon as they entered the area. But instead of trying to meet with them during what probably is the most important by stressful purchase they'll ever make, we indirectly offered our services to them through Realtors, title agents and loan officers, These professionals offered to arrange a Homeowners quote for their clients during the home-buying process. By placing a three-minute phone call to our agency, they could have the quote and binder delivered, hassle-free.
We contacted as many of these professionals as we could, identifying them by their advertising and display signs on homes and subdivision developments. In our "sales pitch" to them, we emphasized the server we were offering them. Amind all the decisions and deadlines of homebuying, Homeowners insurance often is put off until the last minute, sometimes delaying closing while lenders wait for insurance policies to be issued. To give buyers and sellers one less thing to worry about, we promised to provide quotes in 15 minutes, and if accepted, deliver binders in 30 minutes, without exception.
To make sure we delivered on our promise, our employees gave these calls priority attention. It seemed as if we were always calling on our sources to deliver binders, and these visits helped keep us fresh in their minds. We already insured many of the area's home builders (we specialize in programs for residential general contractors) so if Homeowners insurance was mentioned at any point during the home-building/buying process, someone involved probably knew about our agency.
We strengthened relationships and demonstrated our gratitude for referrals by sending floesr to women wo provided them and by buying lunches for men. Flowers are particularly effective in spreading name-recognition in offices, where heads turn when they're delivered. We had a standing order at a local florist to send carnations for each lead , so if a woman provided three leads in one day, she'd receive three arrangements.
The binding procedure was simple and direct. Once a prospect selected a home, the Realtor suggested that the prospect allow our agency to quote the new Homeowners policy that would have to be issued. If the prospect agreed, teh Realtor called us wtih data on the home's location, size, value, age, etc. We collected most information over the phone, but we also gave our sources "quick-quote" forms they could complete and fax to us. Almost all referrals were for homes in new or recently built subdivision, so we inspected only older homes or those wtih questionable values. Once we collected the information, we faxed a quote within 15 minutes.
If a prospect decded to purchase the policy, we contacted the title company or closing office to confirm the details, then prepared the binder. We sent copies to the office and to the insured, whom we contacted after teh closing to schedule a meeting at the agency. At that time, we reviewed in detail all the policyi's coverages, limits and deductibles, made necessary changes, and briefly reviewed the other insurance services we offer. Because we were so busy at the time, we didn't develop accounts as we otherwise could have, but that's something we plan to remedy in our 1995 marketing plan.
Our companies were particularly satisfied with the volumen and quality of business we produced. Usually, when an angency's personal-lines book is out-of-balance with an insurer, it's stacked with auto policies. Insurers always want a crack at clients' Homeowners policies, so we didn't hear any complaints about the one-sided nature of our book. Of course, we plan to write a number of auto policies and other personal-lines coverages for our Homeowners-insureds in the next year.
To help us develop these accounts, we've designed a trifold, color agency brochure that lists at least 20 of our personal-lines products, including cancer policies, Medicare supplements, snowmobile policies, boat policies, etc. We'll print out a list of our Homeowners insureds on the compute and schedule appointsments with them throughout the year.
The brochure also describes coverages we can provide for our commercial-lines clients, who are mostly Main Street business owners and generally, open to this type of solicitation. To reinforce our expertise, the brochure includes a one-page insert featuring biographies of our agency's employees.
The growth in this area isn't over by any streth, although the recent increase in the prime lending rate has slowed much of the recent home-buying activity. But we'll continue to market toward our strength, personal lines, by using the current "lull" to develop the tools and techniques that will help us fully develop current accounts and attract new ones when the next homebjying flurry hits.
That should keep us plenty busy, so don't expect to see us in the next boat when you're up here enjoying Idaho's great recreation opportunities.
