Creative Agents Travel Avenues Of Growth
As difficult as it is for agencies to grow in personal lines in this hard market, there are some methods that can generate expansion if the producer knows how to develop their connections.
Steven Germundson, a consultant with Optis Partners, LLC, headquartered in Chicago, points out that agents should not treat personal lines as a commodity because they will not beat many of the direct writers on price. Instead, they should concentrate on the service angle and focus on an upscale book of business.
In addition, leveraging existing accounts can create sales opportunities–such as proposing a payroll deduction plan for personal lines to a commercial account, Mr. Germundson noted.
One operation set up to help agents capitalize on such an opportunity is Agency Revenue Tools, based in Fryeburg, Maine. Asa Pike, president, and John Macdonald, vice president, said the payroll deduction operation they market arose out of their own desire to grow their personal lines business. After finding a software system that could integrate billing and deduction about 10 years ago, they began arranging to market personal accounts through their commercial clients.
The advantage, they point out, is convenience. Customers do not have to worry about billing, since everything comes directly out of their paychecks and goes straight to the company.
Other ways of capturing personal lines accounts is to find a niche market. For example, Tri-County Agency of Brick Inc. in Bricktown, N.J., located near recreational-minded clients at the shore, picks up personal lines accounts by issuing policies for jet skies, boats, four-wheel-drive vehicles and RVs, said Jacki Jungsberger, a vice president.
The niche both brings in additional business to the agency and puts a foot in the door with the customer for other insurance, Ms. Jungsberger explained.
It also helps to maximize the return on the agency's existing book of business by rounding out accounts, observed Patrick C. Moore, a principal with Antalek & Moore in Beacon, N.Y. This can include increasing coverage where needed, as well as looking for additional policy opportunities through references.
The downside, Mr. Moore noted, is that when you fail to help a client, or premiums take a dramatic increase, word-of-mouth can have a ripple effect. The negative buzz can spread to friends and family, and have a very destructive effect, especially on long-term relationships.
"There is not a silver bullet or a clear path to success in personal lines," Mr. Germundson observed. "It varies from one community to another."
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, June 24, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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