Diversifying the product lines sold to current clients can generally be a faster and less expensive way to increase revenue than finding new clients. Policyholders already know you; they just do not know all that you offer. The added benefit of doing this deepens relationships with those customers already doing business with the agency.
Offering multiple forms of insurance coverage at one agency can add tremendous benefit to the customer. If they need something involving insurance of any kind, they call their property and casualty agent. This could include insurance of all forms; life, home, disability, auto, boat, umbrella, or even long-term care insurance. One call will get the customer support with anything they need if it is all with the same agent. This means more sales for the agency, but the greatest advantage is customer retention.
The industry has a tendency to focus on the lowest price. Customers are willing to move their insurance to any group that offers them lower rates. The more policies an agency has with a customer, the higher the odds are that the customer will work with the office for many years. Perhaps even their lifetime. If a customer has one policy, there is only a 10% chance of retention over ten years, while three or more policies have a 90% retention over the same ten years. Increasing the number of policies a customer has with you is more important than just having the lowest price. Convenience supersedes price.
10-year retention rate
|1 policy (i.e., Auto)||Only 10%|
|2 policies (i.e., Auto/Home)||38%|
|3 policies (i.e., Auto/Home/Life)||90%|
Many property and casualty firms focus on the insurance categories of personal or business insurance like home, auto, umbrella, and liability. Adding life insurance is a great way to accomplish multiple goals at once for an agency, including increased revenue and deeper client relationships while also fulfilling a vastly underserviced market segment and client need. Selling life insurance can set a P&C firm apart from its competitors.
Why Should a Property and Casualty Agent Sell Life Insurance?
The life insurance market is currently underserved. According to LIMRA, Life Insurance Marketing and Research Association, the sales potential of the underserved, underinsured life insurance market is $12 trillion. The underserved market is anticipated to grow by $300 billion per year based on population and inflation trends. In addition, roughly 43% of households lack life insurance. These facts create a tremendous opportunity for P&C agencies to add life insurance to their books of business. No other insurance agency type is better positioned than a P&C agency. Especially post-pandemic, the awareness of the need for life insurance has risen. If more proof is needed, look at some captive carriers. State Farm consistently ranks as one of the top sellers of life insurance in the U.S. while primarily marketing Property and Casualty insurance.
There is a great need for life insurance in the United States. New and ever-evolving electronic processes make it easier than ever to sell insurance. The work from home and lockdown of the country with COVID-19 forced a fast-forward process for carriers to create electronic application processes. More importantly, the improvement of electronic delivery has made everything possible from a home office to a client’s kitchen table. All documents can be electrically signed and processed with many carriers, which means no more printing or faxing documents and waiting for the client to scan them back. The ease of doing business is transforming the sales of life insurance. Thus, opening opportunities to more property and casualty agents.
Property and Casualty agencies can expand their list of services to include Life Insurance tapping into this widely untapped market. Customers want easy processes in their lives, and their P&C agent can be a one-stop shop for all of their insurance needs. This improves client relations and client retention while increasing the agency’s profits.
EMG Insurance Brokerage Can Help.
If you would like to increase your revenue by adding Life and Health Insurance to the services you offer your clients, contact us for support. We know it is essential for advisors to access quality products, expert advice, and cost-effective solutions.
EMG Insurance Brokerage supplies a wealth of support services for the growth of insurance agents. Contact us today and get the help you need to grow your business today.