How to make millions having only 10 insureds.

Posted on Wednesday, July 8, 2015
How to make millions having only 10 insureds.
Every agent I have spoken to wants to find ways to sell more policies and be profitable.  What I have noticed is that selling more does not necessarily mean making more money.  Selling personal auto, for example, takes a very earnest commitment to sales and marketing.  Some commercial accounts, such as trucking and condo associations are very certificate and CSR demanding.  Simply having a goal to sell more policies, without taking into account all of your competitive advantages and resources, may not be the solution to having a profitable book of business.  

What I have perceived is that agents who take advantage of their natural surroundings and resources do far better than those who simply throw themselves full-heartedly in the 12 hours a day neverending commitment to finding new clients.  I have two specific examples, from customers currently using our management system.  They have shared their stories with me and have allowed me to write a blog post on their behalf.  

First is the case of an agent in New York.  He is a one man show, works from home and makes millions.  He does not have a CSR, does not have agents nor a secretary.  He simply does not need them.  He has only 10 clients.  Each client's policy; however, has a minimum of 5 million yearly premium.  He concentrates on providing insurance for the commercial office buildings in New York City.  His secret to success is the commitment he made, 30 years ago, to provide the very best customer service his clients have ever seen.  In order to devote his full attention to every one of them, once he reached his goal of 10 insureds, he decided to stop selling new policies.  Then he used his natural ability to befriend others.  He became a good friend to every one of his insureds.  He takes them golfing, follows them on social media, goes out to lunch and dinner with them.  He calls their family members on all of their birthdays.  He goes above and beyond in terms of customer service.  This has only been possible because he stopped selling new accounts.  Even when his clients send him referrals, he resists the temptation of making even more money and stays true to his commitment.  This is an example of how an agent uses his natural resource, the ability to maintain friendships and his persistence to the commitment he made to offer immaculate customer service.  

I know that many people want to be in his shoes, I sure do.  Many are asking themselves the question "How do I get started on this path".  Once again, it's a matter of using your personal natural resources to gain that much-needed comparative advantage.  At the beginning he was an agent just like any other agents.  Selling small personal lines auto insurance to his neighbors, family members and people attending his religious congregation.  He gained his first account by approaching a neighbor who was a building maintenance manager for a large high rise in New York.  As soon as he sold his first large account, he made a crucial business decision.  He decided to release all of his agents and CSRs, stop selling personal auto and concentrate on developing relationships with markets specific to insuring high-rise office buildings as well as satisfying the needs of his only client.  Sure this is a risky move.  What if that first client did not renew the following year?  Or did not refer him to other high rise building managers in the city?  He would have been without a book of business and no income.  Most of us will never take such a high risk.  Most of us will keep our current book and continue servicing that big account.  Most of us will see nothing wrong with it.  Most of us can only dream of stumbling upon such a large account.  Yet, most of us are not willing to risk our comfort and steady income in the name of our dreams.  

My next example is from an agent out of Findley City, OH who specializes in providing insurance for school districts.  Stay tuned for my next blog post to find out what he did to write some very high-value government-financed insurance policies.  

As always, please get involved by posting your comment or thoughts below.  
Comments
Ann 17 March 2016, 9:34 PM

"This is an example of how an agent uses his natural resource" is something I see as important.

Larry 14 July 2015, 10:46 AM

It's nice that an agency management system would share this, but let me tell you, I have been wanting to do the same thing for the last 10 years. I absolutely can't even think about letting my book go and concentrate only on my big accounts. This is too risky for me. I have some and yes some have passed through the cracks, but my small accounts book feeds my family and if a big account comes once in a while then that is just bonus. This is how I see it anyway.

Troy 9 July 2015, 7:39 AM

Yea, I am just starting and wondering what to concentrate on. Its just not that easy getting that first big account. I guess I am doing the same as everyone else. I am trying the small accounts first.

Your Comment:
Comment As:
Publish