This strategy outlines a comprehensive approach to enhancing all your P&C insurance sales and increasing your hit ratio utilizing environmental insurance.
ERMI field tested and proven sales strategy: Prospect for new business 90 days after renewal
Three main reasons this strategy is effective:
- Every business is impacted by environmental exposures
- Only a small percentage of licensed insurance professionals are actively working with environmental insurance.
- You don’t sell environmental insurance, you educate. An environmentally educated insured can make an informed decision if investing in pollution insurance will add value to their business model.
By targeting prospects 90 days after their standard property and casualty (P&C) insurance renewal, agents can engage businesses at a time when they are not overwhelmed by commodity-based offers (i.e. 90 days before renewal) and are more receptive to discussing their environmental exposures.
Here’s a summary of the key steps to implement this strategy effectively:
- Timing is Key: Initiate contact 90 days post-renewal of the P&C insurance. This timing allows you to bypass the typical commodity-based renewal frenzy, offering a more relaxed environment for discussion.
- Educate and Inform: Begin the conversation by highlighting the importance of understanding environmental exposures that could impact their operations. This piques their interest and sets the stage for further discussion.
- Utilize ERMI Educational Resources: Send the Environmental Risk Assessment (eRA) to the prospect (see attached sample eRA’s for Manufacturers and Contractors. ERMI has over 30 different eRA’s). The eRA provides valuable insights into specific environmental risks, historical loss examples, and relevant insurance coverages. eRA’s are tailored to the prospect’s industry to enhance their effectiveness.
- Follow Up: After sending the eRA, follow up with a phone call to discuss the findings. This step is crucial as it transitions the conversation from information-sharing to exploring how you can add value to their business.
- Facilitate Internal Discussions: Encourage the prospect to discuss the information internally. This step builds trust and allows them to contemplate the benefits of your offerings before deciding.
- Close the Deal: When the prospect understands your added value, they will likely want to move forward. This can lead to a midterm cancellation and rewrite of their current P&C insurance, solidifying your role as their new agent.
By positioning yourself as a knowledgeable and trustworthy advisor, you not only address the immediate needs of your clients but also create opportunities for long-term partnerships. Incorporating environmental education into your offerings can differentiate your agency in a competitive market, ultimately leading to increased sales and a more robust client base.
Bottom line, an agency’s relationship with a wholesaler is only of value if you are binding business.
ERMI coaches retail agents to increase their hit ratio.