Agent/Broker Sales Tips: Capitalizing On PersonalLines

Competition from direct writers and the hard market is making itvery difficult for an independent agency to grow its personal linesbusiness. But there are opportunities to expand a personal linesbook, according to those queried or writing for this specialreport. Suggestions include:

Agents can pursue acquisitions of, or mergers with otheragencies to grow their personal lines books.

Seek strategic relationships with banks, real estate agencies orhomeowners associations to generate prospects.

Look to commercial accounts for prospects for new personal linesbusiness–perhaps by proposing a payroll deduction plan for auto orhomeowners insurance.

Consider moving some functions to insurance company servicecenters, which would allow for the redeployment of agency personnelto prospect for more personal lines business.

Round out existing accounts to get the maximum return on a bookof business and to discourage defections at renewal time.

Find or develop niche markets, such as in the recreationalarena.

Expand into cross-selling of life and health insurance products,either through individual prospecting among auto and homeownerspolicyholders, or through group sales via employee benefitsprograms.

Don't overlook growth within homeowners accounts by helpingclients assess their coverage needs for particularly unique andvaluable possessions, such as family heirlooms, antiques, fine art,or even a baseball card collection. Insureds often do not realizethat their homeowners policy does not automatically cover the truevalue of such specialty items. Providing coverage for valuablearticles could increase premium volume and reinforce relationshipswith clients, while avoiding errors and omissions exposures.

Reproduced from National Underwriter Property &Casualty/Risk & Benefits Management Edition, June 24, 2002.Copyright 2002 by The National Underwriter Company in the serialpublication. All rights reserved.Copyright in this article as anindependent work may be held by the author.