It's a no-brainer: Cross-selling insurance improves retentions,increases profits, and strengthens relationships by offeringcustomers everything from life to pet insurance. But while thereare no statistics on how many independent agencies are activelycross-selling to their customers, many experts say they're notdoing it as often as they should—in spite of the fact that theirsurvival in today's customer-driven environment may depend onit.

“With commoditization of personal lines auto and the comingassault from the direct channel on small business, agents mustrealize that it is difficult to position themselves as efficientand profitable when operating as an insurance vendor who takesorders and quotes business rather than as a professional trustedadvisor providing guidance,” says Tom Barrett, president of theMidwest and Southeast regions of the SIAA Inc. agency network. ”Themajority of agents are not cross-selling, but the informed onesserious about their future are.”

Convincing the average agency owner to cross-sell is still anuphill climb—even though failure to do so can result in yourcompetitors stealing your lunch, says Shirley Lukens, principal atReagan Consulting. More to the point, effective cross-selling canretain business, even in tough times. “At a workshop I did forCentral Insurance Co., one of the agents said they had lost thecommercial lines business of a large account when the economytanked but was able to keep the personal lines business of severalof the key people in that company,” Lukens recalls. “Once theeconomy improved and rates began to harden, that agent was able tocome back and win the CL business they had lost just because theykept that door open through the PL business.”

Excuses, Excuses

The reasons some agencies are reluctant to cross-sell can beboiled down to:

Lack of efficient processes

Cross-selling can't happen in environments where employees feel“overworked and overwhelmed,” says Jack Burke, president of SoundMarketing. “The more you overload the back office with trivialjobs, the less time they have to move into a strategic role withyour clients.”

Lack of trust between staffers

Destructive distrust—between personal lines and commerciallines, or employee benefits and commercial lines—can stiflecross-selling when producers on one side fear their counterpartswill “screw up” their client relationships, says Lukens of ReaganConsulting: “The big issue still comes down to service—if an agencycan't effectively service both lines, then it is best to notcross-sell. But it sure opens the door for other agencies to comein and take all the business.”

Reluctance to learn new skills

“Many agents aren't keen on learning new skills but rather clingto 'doing as they have always done,'” says SIAA's Barrett. “Theyneed to relearn the skills and reinvent themselves as a problemsolver and guiding specialist to those they serve.”

Failure to see the big picture

Most agency owners don't look at their firms as a business, butas a “sales organization designed to support their lifestyles,”Burke says. When they need more money, their solution is to attacha new niche market or get a new product to sell: “This doesn't goto the heart of the problem but actually complicates it.” Visionaryagents who succeed at cross-selling don't approach it through hardsell, but as another way to meet all of the risk mitigation needsof their clients.

Time to get started

So how can agencies get started in or accelerate theircross-selling? Click through for six strategies that can helpexpand your book of business.

Six strategies that can help expand your book ofbusiness:

1. Target the discriminating buyer

Independent agents are increasingly targeting the high-net-worthindividual as a great opportunity to cross-sell. When cross-sellingto business owners, first focus on coverage for the “business ofthe business,” such as key person insurance, Burke says. “Butthat's just the tip of the iceberg, because each key man is usuallya high-net individual. Why haven't you gone after their personallife, financial strategy, $2 million home and their toys?”

2. Examine your processes

Too many times, agency owners tell the back office they want acertain line to be cross-sold to existing clients. But overburdenedCSRs who don't like selling won't do a good job with this method.“The agency must take a holistic look and determine workflowbacklogs that could prevent that nurturing support of the client,”says Burke. The first step is to conduct an analysis of theoffice's infrastructure before going strategic with a cross-sellingplan. Once glitches are corrected, examine the book of business forthe strongest markets, examine how well-rounded each client accountis, and determine what other products the agency can bring to thetable.

3. Create a system

Whether it's color-coded process sheets to help producerspinpoint clients' needs or a formal action plan for cross-sellingfive or six specific lines of business, ditch the order-takingmentality and refocus on giving the client a no-hassle experienceand adding value, Barrett says. Instead of looking at specificlines of business to cross-sell, “focus on a revenue target peraccount in addition to multiple line sales.”

4. Lean on technology

Tech tools make cross-selling easier than ever. Automatedmarketing products provide structured ways to contact clients—notjust at renewal time, but on birthdays, anniversaries, and otherlife events to help nurture the relationship and presentcross-selling opportunities, Barrett says. In addition to puttingautomation to work for you, using social media to build a sense ofengagement is also important.

5. Target products based on client needs—not insurermandates

Legendary insurance salesman Cosmo Conte of State Farm set thestandard for cross-selling to personal lines customers byproactively asking if they were happy with their current coverage.Today's agents must shift from proactive mode to “providingnurturing support, which will create reactive cross selling toclients who request it,” Burke says. It's a subtle difference, butone that shifts the emphasis to put the client in charge.

6. Encourage teamwork

If Joe is a workers' comp specialist and Mary is a benefitsspecialist, and Joe brings in a big account and gets a bigcommission, he may feel threatened when Mary tries to cross-sellbenefits because he fears it will jeopardize his relationship withthe client, Burke says. It's the principal's job to spot thisfriction and encourage all producers to collaborate on customeraccounts.

Click through for profiles on agents who've made cross-sellingwork for them, and how they did it.

The Fact-Finding Mission

It's no surprise that cross-selling comesnaturally to Carlos Romero. Before opening his own personal linesagency in 2008, he worked in sales for the wealth-managementdivisions for PNC and other banks. Later, as a financial specialistfor Allstate, he realized that selling commercial property-casualtywas a breeze compared with selling life products.

Comprehensive Risk Group (CRG) is split 40% commercial, 60%personal lines, with personal lines sales hinging on selling tobusiness owners of existing commercial accounts. On the commercialside, the agency sells CGL, workers' comp, umbrella and businessauto; on the personal side, coverages include personal auto,homeowners', renters, umbrella, health insurance, long-term care,life, variable and fixed annuities, and any investments traded onthe secondary market.

CRG's three producers—and a support staffer who handlesrenewals—are all aware of the need to cross-sell in a process basedon “fact finding” and uncovering client needs, Romero says.

Although the agency was founded on personal lines, Romero hasseen the most growth in the commercial market. “It's nice that onceyou penetrate it and become respected in your community, they comeknocking on the door,” he says. Life insurance and investments arealso growth lines for CRG: The agency generates about $500,000 inannual written premium on new business, and is shooting for $1million on renewals by next year, he says.

Romero stresses the importance of standardizing the salesprocess and carefully training producers before turning them looseto cross-sell. “If you don't have the right people in place, it's adisaster because you need someone who can do the fact finding,” hesays. CRG's system involves the use of a color-coded process sheet,with a one-page questionnaire for each line of business, forproducers to use when meeting with a prospect.

Building on Verticals

NFP, a national insurance brokerage andprovider of benefits and wealth-management services, wasestablished on employee benefits, wealth management, retirement,business planning, HR services and insurance—all a naturalcross-sell for property & casualty, says Saich: “What makes NFPunique in the marketplace is that we have built these verticalsfirst and now we are attaching P&C. Because of this, we have adistinct advantage due to our vast experience in thesedisciplines.”

During the past three years, NFP has developed a P&Cvertical to cross-sell with employee benefits and also a playbookto cross-sell all lines of business. For the past two years, NFPhas successfully cross-sold its wealth management and estateplanning clients into their P&C vertical, Saich says. “Becausethese individuals already trust NFP with their personal assets, itis an easier cross-sell.”

Right from the Start

With a focus on personal lines and smallcommercial, Pinnacle has been cross-selling products since itsestablishment in 2007, says principal Troy Thompson. To Thompson,there isn't much to it—“just being conscious of talking to all ourclients about auto and home, then toys (boats, motorcycles, ATVs,etc.), then umbrella, then business, and finally, life.”

Pinnacle has seen the most success in cross-selling auto andhome to its commercial clients. “It's a no-brainer as the discountis so deep that 90% of our clients have auto and home,” he says.“Doing otherwise generally makes no financial sense.” Umbrella isanother easy add-on “because you're getting another million ofliability insurance for a few hundred bucks a year.”

Asked if there are any drawbacks to cross-selling, Thompsonsays, “Absolutely not. Having more products equals better retentionand also more premium.”