One of the most critical activities for an insurance producer is "filling the sales pipeline" with prospects to whom you can discuss their insurance program. Did you notice that I didn't say "to whom you can sell
insurance?" You are in a unique position to positively impact lives. You know what can happen when people are not properly insured, typically your prospects don't!
Lead generation has changed dramatically over the past ten years. Here are a few areas that used to be the mainstay of producers that may not even be worth your time anymore:
Lead purchase. This information has become extremely expensive for what you now get. The quality of the information generally available has eroded to the point that I really cannot recommend it.
Direct mail. The effectiveness of direct mail is limited unless you can tailor information specifically to a prospect or have a compelling "call to action" proposal. Oversized postcards tend to get more attention than letters and you will need to mail to the same prospect multiple times to gain any traction.
Cold calling. This is still somewhat effective for commercial prospects but a complete waste of time for personal lines accounts. You also need to be careful complying with "do not call" requirements.
In this information age where people like to do their own research online, it can be much more compelling to try these tactics:
Create an online presence. What will people find if they research you? Write articles, speak at local rotary clubs or Homeowner Associations to develop a reputation as an "expert."
Use your consulting skills. Most of us have degrees or expertise in areas other than insurance. Provide tips to prospects that work in businesses where you have knowledge. Prospects will be very receptive to getting good information and would like to do business with someone who can "speak their language."
Offer value added services. For example, everyone should have a "personal inventory" in case the unthinkable happens and everything is lost, but very few ever do it. Even those of us in the insurance business rarely get around to it. Offer to make a video walking around a clients' house opening drawers and closets. This tool will allow them to recover much more financially than if they did not have it. Offer to keep it for them in case they do not have a safe deposit box or fire-proof safe.
Make a list of prospects. Pick prospects you would like to do business with and learn about them through their website. Walk into their business and bring them useful information they will want to keep with your contact information included.
Pay attention to your current clients. Strong retention is the key to growing your business. If your retention of clients is only 80%, you are churning your entire book every 5 years as you are losing 20% per year! Contact clients especially spheres of influence or clients that generate a predetermined level of revenue at least 4-6 times per year. Send them for example surveys regarding your service to find out if their expectations are being met. If they like you and trust you, they will refer others to you.
Producers bring so much value to the equation. Insurance is complicated, has its own language and honestly, prospects' insurance programs that I see on a regular basis are typically poorly thought out. The goal should not be to find your prospect "cheaper" insurance. The goal is to properly insure people to protect their assets and their particular situation. If you choose to do the right thing for all parties, you can be extremely successful and feel really good about the career you have chosen.
Sharon Graeter, CPCU is Co-Founder and Director of Development for West Connect Insurance Solutions. She has 30+ years experience in Property/ Casualty Sales Management. If you have interest in a career that allows you to enhance the lives of your clients while providing you with a great lifestyle and are located in California, contact our website at
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