With commoditization of personal lines auto and an ongoing assault from the direct channel on small business, independent insurance agents need to exploit every opportunity to sell insurance products and services to their existing client base. Yet most experts agree that agents are taking a deer-in-the-headlights approach when it comes to cross selling products.
We spoke with three agencies and brokerages that are committed to cross selling on how they got started and succeeded with cross selling. Their stories follow.
CRG Insurance, Wheaton, Md. – Carlos Romero, owner
It's no surprise that cross selling comes naturally to Carlos Romero. Before opening his own personal lines agency in 2008, he worked in sales for the wealth management divisions for PNC and other banks. Later, as a financial specialist for Allstate, he realized that selling commercial property-casualty was a breeze compared with selling life products.
Business split at CRG (“Comprehensive Risk Group”) is 40% commercial, 60% personal lines, with personal lines sales hinging on selling to business owners of his commercial accounts. On the commercial side, the agency sells CGL, workers' comp, umbrella and business auto; on the personal side, personal auto, homeowners', renters, umbrella, health insurance, long-term care, life, variable and fixed annuities, and any investments traded on the secondary market.
CGR's three producers–and a support staffer who handles renewals–are all aware of the need to cross sell in a process based on “fact finding” and uncovering client needs, Romero says.
Although the agency was founded on personal lines, Romero says he's seen the most growth in the commercial market: “It's nice that once you penetrate it and become respected in your community, they come knocking on the door.” Life insurance and investments are also growth lines for CRG. The agency generates about $500,000 in annual written premium on new business, and is shooting for $1 million on renewals by next year, he says.
Romero stresses the importance of standardizing the sales process and carefully training producers before turning them loose to cross sell. “If you don't have the right people in place, it's a disaster because you need someone who can do the fact finding,” he says. CRG's system involves the use of a color-coded process sheet, with a one-page questionnaire for each line of business, for producers to use when meeting with a prospect.
Finding a client's needs through this process paves the way for cross-selling success and positions CRG as a cut above other brokers, Romero says. “We tell our customers they need three experts in their lives: their attorney, their doctor, and their financial advisor,” he says.
Pinnacle Insurance Agency of Minnesota LLC, Coon Rapids, Minn. — Troy Thompson, principal
With a focus on personal lines and small commercial, Pinnacle has been cross selling products since its establishment in 2007, says principal Troy Thompson. And to Thompson, there isn't much to it: “just being conscious of talking to all our clients about auto and home, then toys (boats, motorcycles, ATVs, etc.), then umbrella, then business, and finally, life.”
Pinnacle has seen the most success in cross selling auto and home to its commercial clients. “It's a no-brainer as the discount is so deep that 90% of our clients have auto and home,” he says. “Doing otherwise generally makes no financial sense.” Umbrella is another easy add-on “because you're getting another million of liability insurance for a few hundred bucks a year.”
Asked if there are any drawbacks to cross selling, Thompson says, “Absolutely not. Having more products equals better retention and also more premium.”
NFP (National Financial Partners) — Paul Saich, P&C California regional president
NFP, a national insurance brokerage and provider of benefits and wealth management services, was established on employee benefits, wealth management, retirement, business planning, HR services and insurance—all a natural cross-sell for property and casualty, Saich says. “What makes NFP unique in the marketplace is that we have built these verticals first and now we are attaching P&C,” he says. “Because of this, we have a distinct advantage due to our vast experience in these disciplines.”
Over the past three years, NFP has developed a P&C vertical to cross-sell with employee benefits, and for the past two years, developing the playbook to cross-sell all lines of business. NFP has seen especially good success from cross-selling its wealth management and estate planning clients into their P&C vertical, Saich says. “Because these individuals already trust NFP with their personal assets, it is an easier cross sell.”
NFP has added staffers to coordinate all cross-selling opportunities and make sure the right producers are teaming up with the right opportunities. “The key is in working hard to building trust with both clients and staff,” Saich says. “We work hard at making sure our production staff buys into our process and knows that they have a competitive suite of products to bring to the table. There is no better way to secure an account and gain client loyalty, which results in a win for both NFP and our clients.”
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