Safeco Insurance
Affluent accounts can maximize growth for your agency
When you build relationships with customers who have affluent accounts, you’re building relationships with clients who tend to have higher retention rates and increased cross-sell opportunities.
Unlike other demographics, the affluent account segment is seeking peace of mind and protection, not just low prices. This lower price sensitivity means that these customers are looking for a trustworthy agent to help them find the proper coverage, and once they find that agent, they are likely to stick with them.
These customers are a perfect fit for the ease, choice, and advice offered by an independent agent. Consumers are not insurance experts. All too often, they lack the expertise and nuance required to create insurance solutions that offer the highest level of protection. They are looking for guidance and consultation in creating comprehensive protection for their unique coverage needs.
Mass-market coverage may not offer adequate protection
Imagine a customer who chooses mass-market home coverage when they buy their first home. Over time, they move into larger, more customized homes, grow their family, and purchase toys like motorcycles, boats, or RVs – but they never update their coverage. They may not realize that their risk profile and additional assets have outgrown the protection offered by the policy they originally purchased. This leaves critical coverage gaps that could lead to unexpected expenses and leave these customers unprotected.
A mass-market homeowners policy may suit a new homeowner in a small starter home. However, it may be insufficient to cover losses to a home with a replacement cost of $500,000 to $3 million.
These homes are often unique, with custom finishes, antique furnishings, or historic elements that aren’t covered in a mass-market homeowners policy. However, extended dwelling coverage and building ordinance or law coverage can help customers rebuild after a loss if the additional expenses required for materials, labor, or bringing the home to code exceed the Coverage A amount. And policies that offer replacement cost upfront give customers more options in the event of a total loss.
Affluent accounts bring cross-selling opportunities
A customer with an affluent account may have risk exposures from being active in the local community, hosting events in their home, or owning multiple homes or specialty vehicles they use in their free time. These customers may need an umbrella policy and coverage for additional homes and vehicles.
This offers perfect opportunities to cross-sell multiple policies to the customer, which can be a growth engine for your agency to sell more NB. This also solidifies the retention opportunity offered by affluent accounts as you help customers cover more risks.
Customers may also benefit from placing all of their business with one carrier, especially a carrier like Safeco that offers packaged discounts and a single loss deductible for customers that protect their home and auto with Safeco.
IAs are uniquely positioned to ensure that affluent accounts have the best protection
Customers with affluent accounts need the ease, choice, and advice offered by an independent agent. Looking for opportunities to grow your business with affluent accounts is mutually beneficial: you can find preferred customers and grow your agency, and your clients can rest easy knowing they have holistic protection for their lifestyle.
The Role of Excess, Surplus, and Specialty Markets in Insurance Agencies
There's a common misconception that excess & surplus (E&S) and specialty lines coverage is only for business that has been historically rated high-risk or for those one-off, hard-to-place risks that cross your desk a few times a year. But as carriers tighten their requirements for writing standard business, having relationships with E&S carriers can help you provide essential coverage for homeowners and business owners who don't qualify for standard policies. Check out the 2020 Issue 2 of Smart Choice Magazine for more.