Increase your book of business using existing clientele

One of the best ways to increase the size of your book quickly is by tapping into your existing base of customers. There’s almost always more business to be had with your existing clients. Start by doing a review of coverage with each client. Then sit down with them and ask the right questions to elicit and uncover coverage gaps you can offer to fill. Use that opportunity to make them more loyal to you when you offer to shop their coverage and find them better coverage at a better price.
Start with your top premium clients and work your way down – selling personal lines to commercial-only accounts, and ascertaining if your personal lines clients have businesses you could potentially write for them. You already have a number of P&C clients on your book. What better place to look to increase revenue, than the people you already do business with? Not only does this increase retention and loyalty, it makes less likely your client will want to shop and move their business elsewhere down the road.

Understanding Contingency and Bonus Requirements with Your Insurance Carriers

Understanding Contingency and Bonus Requirements With Your Insurance Carriers
By: Michael Miller, Smart Choice® State Director

As an insurance agent, your business lives or dies on the amount of new and renewing policies you sign with your carriers. Years ago, how you got paid was fairly straightforward: you got paid a percentage of the premiums you signed. But carriers have changed the way they compensate their agents.

Today, agents earn a complex combination of commissions, contingencies, and bonuses, each calculated a little differently. Understanding the math can be a full-time job, not to mention figuring out how to maximize your earnings.

Contingency Commissions Reward Performance

You’ll always make a little money on each premium you sign, even if you only sign a few dozen a year. But carriers offer sizeable contingency commissions for agents who set and meet goals for production, retention, and profitability. These rewards are contingent on you meeting these goals.

What’s tricky about contingency commissions is that you never know how much more you’ll end up making as you sign on new clients. The contingency is earned after you meet your goals for the year. When you’re writing a policy in January, you won’t know whether you’ll actually meet your contingency requirements at the end of December.

Bonuses Honor Excellence

Insurance carriers often award agents who go above and beyond with bonus income. Sometimes, carriers run special sales contests for agents to compete in. Other times, they’ll allow a loyal agent to charge them interest on any new business the agent brings in for them.

Getting the Most out of Your Appointments

Contingency and bonus income were initially offered only to the largest agencies, which had the staff and book of business large enough to hit production targets. But that’s changed in the last 25 years. Today, small agencies can compete for this extra income if they’re able to meet the requirements.

Joining an agency group can be a way to increase your chances of earning contingency and bonus income. Agency aggregation pools together the resources of multiple small agencies so they can compete with the larger players. That’s why many independent agents choose to join Smart Choice®. To discover why a partnership  is the smart choice, connect with Smart Choice® today.

 Source: Property Casualty 360

Understanding Insurance Agent Commissions

Hands Giving & Receiving Money

Understanding Insurance Agent Commissions
By: Michael Miller, Smart Choice
® State Director

Knowing how agent pay and commission works can be tricky, whether you’re an experienced independent insurance agent, a producer on an agency’s payroll, or if you’re considering making a career change into the insurance industry. Here’s a quick run-down of the different ways insurance agents get paid so you can decide the best option for you.

7th Best Business Job
This year, US News & World Report ranked “Insurance Agent” as its seventh best business job in the United States. Half of the insurance agents in the country are independent, while about a quarter work directly for an insurance carrier as a captive agent.

While some agents are salaried, most earn part or all of their incomes on commission. This means a lot of an agent’s time is spent finding and following up with leads. Without the right support, it can be tough for new agents—or newly independent agents—to make a living off commissions alone.

How Commissions Work
The amount you earn in commission as an insurance agent depends on how much insurance you sell and the type of insurance you sell. An agent selling life insurance, for example, may make between 30 and 90 percent of a client’s first-year premium. Commissions on premium renewals are typically lower. Agents selling life insurance may only make 3 to 10 percent on life insurance renewals.

The commission you earn also depends on the carriers you work with. Some carriers have more generous commissions (and bonuses) than others. Joining a cluster group can help you gain access to some of the industry’s more generous commissions. Members typically split commissions with their cluster group. Each group splits commissions differently, so do your research carefully before you commit.

Sources:
http://money.usnews.com/careers/best-jobs/insurance-agent
http://www.investopedia.com/articles/financial-careers/08/become-insurance-agent.asp?adtest=article_page_v12_v2
http://www.bls.gov/ooh/sales/insurance-sales-agents.htm#tab-5