Don’t get caught up with one product line

Posted on: Friday, October 04, 2013

For insurance agents who sell different types of coverage, it can often become difficult to avoid getting too wrapped up in a specific type of insurance lead, as there may be instances where health leads are hot, but other types of coverage are not. However, this type of tunnel vision can short-circuit agents' long-term goals, according to the results of a recent study.

The analysis was performed by global information and advisory firm J.D. Power and Associates, as part of its annual U.S. Household Insurance and Bundling Study. It found that among the consumers questioned, nearly one-quarter of them rented their home. Of these, less than half had a secured a renter's policy. This is in stark contrast to people who own residences, as the majority of those who are homeowners have insurance.

Renters tend to be more content with insurers
Interestingly, however, despite fewer renters having insurance compared to owners, those who lease their units tend to hold insurers in greater esteem. For example, the report found that renters were more satisfied with their provider, registering an approval score of 809 on a 1,000-point scale. Homeowners, meanwhile, were at 787.

Additionally, renters were more pleased with the cost of their plans than homeowners. The poll found a 45-point disparity between the two in satisfaction levels.

Jeremy Bowler, senior director of the global insurance practice at J.D. Power, noted that these numbers suggest agents are being too myopic about courting insurance customers.

"Many insurance agents focus their time selling high-dollar products, such as auto and homeowners, with higher commissions instead of the average $200 per year renters policy," said Bowler. "This is shortsighted because agents who satisfy the large renter population today are more likely to retain and service their growing household insurance needs over time."

Trying to maintain a consistent level of focus on all the product lines agents sell can yield rewards when insurance prospecting. In fact, some of the strategies used for one offering can often be applied to another. This is something that financial expert Benjamin Lawski, superintendent of New York's Department of Financial Services, recently spoke about with news outlet Bloomberg. He noted that the standardized way in which the government rolled out the health insurance exchanges should apply to homeowner's policies moving forward.

Posted In: Insurance News, Prospecting, Leads, Sales Techniques

Enjoy this post? Share it with others.
  • Share on Digg
  • Share on Facebook
  • Bookmark on Google
  • Share on LinkedIn
  • Share on Reddit
  • Share on Twitter