The Juice Without the Squeeze

September 18, 2021

Matt Rohrer, President/Owner, Rohrer & Associates Inc.

Spilled orange juice with a whole orange sitting on top of it.I’ve heard them all so many times: the many reasons — dare I say excuses? — that P&C agents don’t sell or market life insurance. Based on how selling life insurance once was, I totally understand their rationale. When I started in this industry twenty-five years ago, selling life insurance was at times a colossal undertaking, in part because P&C agents knew what they were about to get themselves and their clients into: the old, traditional life insurance application process.

“I love filling out 47-page life insurance applications,” said no one ever! And what about the pages of medical questions that no P&C agent, or any insurance agent for that matter, enjoyed asking their clients?

Once the P&C agent made it through the application with their client, it was time for a medical exam, medical records, processing time and likely more questions. This process could take weeks, which put the P&C agent in a tough spot with their quality clients. But onward ho in search of the Superman or Wonder Woman underwriting rate classification.

The big day finally came, and sadly Superman was approved at something other than Superman rates. Time for the agent to muster up their own superhero powers and go back to the drawing board for a hopeful fix. More time. More expense. More pain.

Thank goodness those days and archaic processes are behind us! Today’s P&C agencies are in search of additional revenue centers, as online sales and mergers and acquisitions apply significant pressure to agency livelihoods. For many of the most successful P&C agencies, the search is over and life insurance sales are the clear answer.

It’s the perfect additional policy for any P&C client, and here’s why:

  • 46% of Americans don’t own life insurance, and 33% are underinsured.*
  • The process of buying life insurance has never been easier for clients. They can buy a policy in minutes.
  • Life insurance is the one policy that clients are guaranteed to use if kept for their entire life.
  • Most people don’t cancel their life insurance policy, like they may do with personal lines or small commercial policies.
  • Most clients don’t want to leave their loved ones in financial peril if they are to die prematurely.
  • The pandemic has made more people aware of the need for life insurance.

So now that we know why life insurance is a great solution for your P&C clients, let’s talk about how the process of selling life insurance has so dramatically changed for the better.

Once slow and cumbersome, the underwriting process has seen the biggest improvement. It looks nothing like it did even two years ago. Life insurance carriers can now approve a policy in seconds with AI-augmented and algorithmic underwriting. Sometimes called accelerated underwriting, automated underwriting, or no-exam life insurance, this wicked-smart technology has entirely erased those 47-page applications referenced above and replaced them with online e-applications, drop tickets and automated underwriting processes that take the P&C agent minutes or even seconds to complete.

If that sounds impressive, prepare to have your mind blown. This technology is available right now to allow your clients to protect their families, businesses, and livelihoods in less than 10 minutes. Here’s how it works.

First, a web link is designed for the P&C agent or agency. This web link can be sent to a client via email, text, direct message, over the phone, Pony Express, message-in-a-bottle or any other mode of communication. Getting the web link to as many clients as possible is the key.

Next, the client can access the link allowing them to instantly run a quote for life insurance. “Instantly” is the key word here, and I feel absolutely obligated to expound on this.

Nearly every consumer life insurance website I visit asks me to click on something to receive an “instant” quote. I am let down every time I fall for their definition of “instant”. Nowhere in my dictionary does it explain “instant” means I will be asked several personal questions, need to create a username and password, only to be forwarded to a new page with more questions about me, my family, my kids, my dog and yet, no quote.

The web link technology I am describing is truly “instant” and 90% of the clients access this right on their mobile phones. The client gets an immediate estimated rate for their life insurance without any of the rigamarole. Keep in mind, the client is doing all of this on their own. The P&C agent simply sent them their customized web link.

Once the client decides on a rate that is attractive and affordable, they can apply immediately on their mobile device, their thumbs doing all the work. The client will answer 10 responsive medical questions and then be prompted for some lifestyle questions. They will create a password to protect their data, and the algorithmic underwriting will begin immediately.

This is where things get really good. Once the client completes the underwriting questions, they are fully underwritten in minutes, or even seconds. That’s right: no exams. No doctor’s records. No needles. No hassles. No delays. The numbers are crunched and if approved, the exact price will appear on their device. Did I say, “if approved”? Don’t sweat it, 70% are approved for coverage. Now that the client has an approval, they can pay for the policy immediately on their mobile phone with a credit card, debit card, Apple Pay or Android Pay. Let’s face it, clients would much rather give you plastic than paper today. Checkbooks are so 2010.

Once the client has paid for their policy, they have instant access to their in-force policy and all policy documents. They can upload their policy, save it to their device or even print it the old-fashioned way. Minds. Blown.

Think of all the applications for this technology for you and your clients! Get your web link out there any way you can. CSR’s can give it out. Add it to your email signature. Paste it all over your website. I haven’t even addressed social media yet and all the ways you can advertise there. Maybe even a TikTok to fire up your audience….or maybe not.

My message to all P&C agents is that buying and selling life insurance has never been easier. What are you waiting for? Forget everything you once thought about selling life insurance. Forget about getting in the weeds with your clients when talking about life insurance. Forget about the once-cumbersome selling process and embrace the technology and protection your clients desperately seek. The outcome is already being proven by thousands of agents and agencies. More clients. More revenue. More mailbox money. More juice! Without the squeeze.

*LIMRA 2020 Insurance Barometer Study

 

Cover of Smart Choice Magazine 2021 Issue 5, The Agent Education IssueAgent Education: Invest in Your Success

Insurance advisors should take their ability to safeguard the public and the financial industry seriously by investing in themselves and their personal knowledge. We should be mentoring and teaching new producers in our agencies, spending time on continuing education, and putting what we learn into practice. Check out the 2021 Issue 5 of Smart Choice Magazine for more.

Read the Magazine