Increase Property and Casualty Agency Revenues Through Financial

Increased pressures to capture a larger market share through the sale of Financial Services products to existing clients has touched most agencies. Some owners push back, some accept the pressure as part of the business and die early and others actually do something about it.

Actually, it is true that people are more likely to buy from people they have bought from before so it would seem that agency owners could see the synergistic possibilities and act upon them. But selling financial services to existing clients is often more challenging than it would seem.

While many Property and Casualty carriers have good Financial Services products, or at least good enough, to compete with Big Life and Financial Services guys, they are seldom capable of convincing their agents to do so.

The reason is often related to what is known as the “Path of Least Resistance.” It is true that it is easier to sell something required (if you have a loan or mortgage you must insure it) than it is to sell something that is just “Nice to Do,” like providing for your family in more ways than one, or providing for a comfortable retirement or just plain paying for a college education.

In that regard, where many agency owners struggle with the question of need, the truth is that most every clients, when asked the question; What do you most want in life? They will say something like this;

  1. Live a life with minimal financial worries
    2. Provide a College Education for my children
    3. Retire in comfort
    4. Know my family can make it if I am gone

That’s it! Just those four things and they all involve Financial Services. Every property and casualty agent can increase their by 25% if they met only one of those common needs. And it is true that their client would really rather buy those products from them than the Life Insurance Agent that has been bugging them for the last several months. So why don’t they? Answer: The Property and Casualty Agent fails to ask.

There will be some clients that need more sophisticated help but most are simple needs like Life Insurance, IRAs, and Disability. For those clients who need more sophisticated help, they can be served by the Agency Financial Specialist or whatever you wish to call them and you can make even more money. Bottom line, keep focused on what you customer wants and remember they are your customer until someone else sells them something you should.

I have found that most agency owners are very receptive to finding new ways to advance revenues without increasing expenses. One thing that gets the owner’s attention faster than anything else is a realistic look at potential.

Here is a cost free plan for adding 25 percent, minimum to your agency revenues by selling Financial Services to existing policyholders:

  1. Survey and Identify the potential
    2. Keep your target simple (remember people only want 4 things)
    3. Bring in a Financial Services professional to work the existing book
    4. Revise your Agent Training Program
    5. Hire a coach to work with your sales team (one of the best investments you will make)