Off The Record

Off The Record
By: Josh Seibert, Sandler Training

The STORY:
Tim had mentally decided that the prospect he was talking to was never going to buy. For the past 20 minutes Tim had tried all of the trial closes that had worked in the past.

“I have to tell you Tim, I don’t know that this will do what I need.”

Tim had already tried the “what do you really need” response with no luck. Figuring he had nothing to lose and might learn something that he could use on other prospects, he innocently asked the following.

“Off the record . . . since you have decided not to buy . . . what are you really looking for?”

For Tim, the resulting silence was painful, but he really wanted to know the answer. If I can get this information, he thought, I can use it. So I’m just going to outwait the prospect.

Finally, and much to Tim’s relief, the prospect responded.

“Well, since you asked, off the record as you put it, here’s what I’m trying to do,” responded the prospect for the next five minutes.

At the conclusion of the prospect’s response, still convinced that he’d never close this one, Tim answered.

“That’s very interesting. So I suppose since we’re still off the record, you’ll never see yourself purchasing this . . .” and as Tim struggled to find the words to continue, the prospect jumped back in.

“Hold on a minute, Tim. I didn’t say I’d never buy it . . . and now that I talked out what I was looking for, well, you know, what you have might actually do it for me.”

The RESULT:
Perhaps Tim will make this sale. What Tim did do by going off the record was to subtly pressure the prospect into defining just what he needed. And by adding the assumption that the prospect was never going to buy, Tim was forcing the prospect to see a future where Tim’s product was not part of the solution. Either the prospect would view this future as good, in which case Tim never had a chance to make the sale, or bad. If bad, then Tim had an opportunity to make a sale. Off the record, how do you see it?

DISCUSSION:
Tim did not act like most salespeople. How many salespeople have the guts to state, “Off the record, since you have decided not to buy . . . what are you really looking for?” What is the salesperson afraid of when he makes this statement? Simple — the prospect is going to walk out the door. Consider this, if the prospect does immediately leave, then he never had any intention of purchasing. You’ve just saved yourself a lot of time.

The prospect who remains after hearing this question has no option other than to respond. What he says at this point will help you in determining whether he is a serious potential buyer or someone to follow up in a phone or mail sales effort.

APPROACH:
Pairing “off the record” with “since you have decided not to buy” accomplishes two goals for you.

First, “off the record” suggests that now you and the prospect can talk freely. Neither of you will use what is said to make or break the sale. Of course, this is ridiculous. Anything the prospect says will be used by you to either pursue the sale or end it. But just the phrase, “off the record,” often achieves the goal of getting the prospect to reveal what his concerns are.

Second, “Since you have decided not to buy” forces the prospect to bring the future into the present. In other words, he perceives right now what it will be like without your product. If his concerns are painful enough, seeing the future today is often enough to get a prospect moving toward purchasing.

THOUGHT:
Giving the prospect a way to see the future often helps the prospect buy today.

Josh Seibert is the president of Training & Development Solutions, Inc., Sandler Training located in the Piedmont Triad.  He can be reached at 336-884-1348 or www.training.sandler.com

©Sandler Systems, Inc. All rights reserved.

Writing Hard-To-Place Risks

Writing Hard-to-Place Risks Starts with a Good Relationship with Your Excess & Surplus Carrier—
and Your Underwriter
By: Michael Miller, Smart Choice® State Director

Most insurance agents can write auto and home policies in their sleep, and many understand commercial insurance like the back of their hands. But sometimes, clients throw us curve balls. They might have had multiple losses that make finding a policy difficult. Others might be in an industry so unusual or risky that standard carriers won’t cover them. In these cases, relationships with excess and surplus (E&S) lines carriers can be the difference between making the sale and turning a potential client away.

A look at what E&S lines carriers can do for you

E&S lines carriers are insurance companies that write policies for unusual or specialty businesses that standard carriers consider too risky. Sometimes, this is due to a history of loss. But more frequently, standard carriers simply do not have the experience writing these businesses to be able to offer a policy that comprehensively and appropriately covers the risk.

Many E&S lines carriers are licensed in a single state but can do business in other states. But they don’t have to be based in the United States. In fact, the largest E&S carrier in the United States is Lloyd’s of London, a British company. At Smart Choice®, we have partnerships with several E&S carriers, including Burns & Wilcox and Willis.

Your relationship with your E&S underwriter

The E&S lines market operates slightly differently from the standard commercial lines market. Usually, you must try to write the policy with one or more standard carriers before shopping the policy on the E&S market. Doing so requires a relationship with an E&S carrier.

It’s important to maintain your working relationships with the E&S carriers you have appointments with. That starts with your E&S carrier underwriter. If you invest a little time in your relationships with your underwriters, it’ll pay off in the long run.

Underwriters are in a tough position. They have to answer to their employers, the carriers, who reward them for writing high volume of policies with “good” risk. But they also need to please their agents, who bring in the business but often make requests that are riskier than their carriers prefer.

To write a good policy, your underwriter has to trust your judgment on the customer’s risk. And since most E&S policies do not have standard clauses regarding binding authority, back dating, and do not give advance notice of changes to policy, it’s important for you to understand how your E&S carrier underwriter operates and stay on top of each customer policy.

If you make it clear to your underwriter that you understand what “good” risk is, the more likely he or she will be willing to work with you on your more complicated policy requests. Give your underwriters the professional courtesy of asking thoughtful questions and submitting a clean request that has all the information they’ll need to feel comfortable writing it. Make your requests complete, clear, and timely.

If you take the time to get to know your underwriters and their carriers, you’ll learn certain carriers will never write particular policies, while others are eager to take on your riskier requests. But you’ll only know this if you invest some time and effort to understand how and why your underwriters write what they do. Take a moment to get to know them better. It’ll pay off for your agency in the long run.

Customers requiring E&S policies may not come through your door every day, but being proficient in writing this type of business can create real opportunities for your agency. You could become the resource for niche industries who can’t be insured through their current agent’s standard carriers. Imagine writing all the car dealerships or pizza delivery businesses in your metro area. What impact could that have on your agency’s profitability over the next five years?

Common Hard-to-Place Risks

  • Engineering Companies
  • General Contractors
  • Implement Dealerships
  • Motorcycle Dealerships
  • Large Habitational Risks
  • Trucking Companies
  • Used Car Lots with Inventory of 30 or Fewer Units
  • Vacant Buildings

[Sources]

Insurance Journal

Claims Journal

Property Casualty 360