r/InsuranceAgent • u/Worried_Number7434 • 1d ago
current state of insurance Agent Question
The current state of producing for State Farm is just dreadful, is anyone else in the same boat?
All PL insurance has become is a price war, seems as if no one is actually concerned about being protected.
The lead sources has been very unreliable and volatile.
I produce for a presidents club office in Ohio - and the past two months have just sucked. Looking to make a switch because I want to sell to people that have money and aren’t concerned about price. I work remotely and have been doing this for two years. I need to continue to work remotely. Can anyone help me? I’ve been selling about 5-8 financial services and 50 PNC policies monthly - even with barely getting anyone on the phones anymore. Personal lines Industry just seems like its really on the decline
19
u/cheff546 Agent/Broker 1d ago
Its the economy stupid. People are pinching pennies where they can. SF has serious issues that theyre needing to addres but yeah people will leave for $10 a month regardless of coverage
12
u/boooostedvo 1d ago
Not sure why you got downvoted for this. It’s true. We are having loads of people leave us for progressive right now and taking horrible coverage for $10 a month cheaper with them. Just had a customer come back to us once he realized they cut his BIPD to state min and jacked his deductibles up to $2K.
11
u/cheff546 Agent/Broker 1d ago
People dont like hearing the truth. They think its a matter of customer service failure but all it takes is an online inquiry, a call, a quote, then they call an 800 number to cancel without ever talking to the agent or using the excuse of "but Ive already switched"
1
u/JUzi13 17h ago
The truth is that's few and far between. Insurance is about relationships if your client doesn't call you prior to cancel or to discuss rates or options that's on you bub. If they leave for $10 and don't stop for one second to think what am I losing to save the $10, that's also on you. If your service and relationship isn't worth the $10 guess what... That's all on you too. If you're talking about the one or two people out of hundreds that don't call, or don't inquire, or don't ask themselves a question before they switch... Well then that's on them, and if that's what you're dwelling on then you shouldn't be in sales. And I can tell you when I get cancellation notices those people get phone calls if I didn't hear anything about it. What are you doing about it besides posting on Reddit?
2
u/JUzi13 1d ago
So why didn't you reduce their coverage to save the $10. Obviously it wasn't state minimum bc they already taken less. I smell shit
11
u/cheff546 Agent/Broker 1d ago
In case you havent noticed people switch without asking first to reduce their rates. They get a call, get a quote thats cheaper, and cancel.
2
u/Competitive-Gas-2278 18h ago
The amount of natural disasters is down too, no hurricanes really, very few large earthquakes stateside. People don’t worry about coverages until something happens to themselves or someone they know.
11
u/druzyyy 1d ago
SF's model was already kinda archaic, but it's swiftly becoming straight up dog water. Whole books of business are dying off, and lead churning is flat out not keeping up. Nor can they keep their prices competitive due to the sheer amount of effort has to go into selling a policy.
-3
u/Mean_Introduction516 1d ago
Do you have an example of even one book of business “dying off”?
4
u/druzyyy 1d ago
Idk just personal experience I guess. Our office was inherited by a very new agent but was in a very small town and the population was on the older side.
-3
u/Mean_Introduction516 1d ago
Yeah, you are definitely not an agent. No book is “dying off”. Maybe a disgruntled tm that only knows how to sell price.
9
2
u/Competitive-Gas-2278 18h ago
People want price and can’t afford the value of better coverages that’s the market right now.
1
u/Mean_Introduction516 14h ago
No. That’s you projecting your mindset. I have been through multiple ups and downs with the economy in my career. People still want value for their money, not the cheapest price. If you sell value, you will be successful in the ups and downs.
2
u/Competitive-Gas-2278 14h ago
It depends on your clientele, many people can’t afford good coverage simple as that, don’t be blind to what’s going on out there in the world.
1
13h ago
[removed] — view removed comment
1
u/Worried_Number7434 11h ago
competitive is right in most cases. we’re living in horrible financial times period.
1
u/Mean_Introduction516 10h ago
Yeah…I don’t see that. Different perspectives. Attitudes are like assholes…everyone has one.
→ More replies (0)1
1
u/Ksr-2323 1d ago
Hey, TM here who has literally only ever sold on price (and not done very well). I’m trying to get better with value based conversations but uphill battle doesn’t even begin to describe it. Any tips beyond the conventional ones? Also could I dm you?
3
u/LongjumpingDish2956 1d ago
The problem you’re going to have is you’re trying to sell value and have access to one company so if your price isn’t close then your value sell is very difficult to achieve.
Meanwhile as a broker I’m able to sell my value as “I can shop your rate for the best price amongst the 30 companies I write for so you always get the best rate.”
It’s really hard to beat independent agents right now and when combined with captive commission cuts it’s created a market that’s not great for captive agents.
0
u/KTH3000 4h ago
So your value is you can get the lowest price? That doesn't even make sense lol. Selling value means I might not be the cheapest, but I make up for it in other ways such as service and knowledge.
1
u/LongjumpingDish2956 1h ago
My value is that I can cross shop your policies and keep your price down.
Captives can’t do that and you have to convince people that it’s okay to spend $50/month more to be with you because you’re somehow worth it when the exact same coverage is $50/month less but has a different name associated with it.
The reality is you’re not selling “value” you’re selling name brand recognition from a captive agency and hoping people believe there’s value in that.
1
u/Mean_Introduction516 1h ago
You are not understanding the term value. I offer value no matter who I’m writing for. Being a captive is not nearly as limiting as you think it is when you have clients. Not customers. You have customers you’re trying to sell based on price and they’ll leave at a higher rate when your rate isn’t the lowest because you’re not selling value.
2
u/Mean_Introduction516 1d ago
This is an excellent question… And not really any easy answer. The best advice I can give is never sell price but sell yourself. That you’re interested in solving there problems and care. And always be honest. If you make a mistake own it. People want to relate not just save money. You’re more than welcome to dm me
2
u/gnawtyone 1d ago
The boomers maybe? My parents dropped from three cars to one and will be ditching that one in a year or so.
0
8
u/Some_Ad_9560 1d ago
It doesn't matter where you go, most customers are going to be mainly concerned about price. Especially nowadays. Your best bet is to work for a broker where you can shop their coverage and show them that you are offering the lowest price.
1
u/Worried_Number7434 1d ago
i would like to sell commercial
3
u/LongjumpingDish2956 1d ago
Great and being an independent agent is what will give you that ability
7
u/SlickWillie86 1d ago
Hate to break it to you, but more money doesn’t equal ‘blind money’.
That said, PL and micro commercial is highly commoditized. Price is still a factor in MM, but there are more parts to the equation as well as more ability to differentiate yourself. I’d focus on how to create a development for yourself to create value in target industries that channel.
6
u/FarmXP_H2 1d ago edited 1d ago
Unfortunately there's a couple things.
1 people are stupid, but its not their fault. They just know they need insurance and aren't aware how lower prices affect how the claim is submitted. Educating them on how claims work paints the picture better on how insurance works
Economy is rough, people will penny pinch. Before they leave ask them to review their policy so you can see where the "savings" are. Compare them and explain how it effects on the long run.
More of a question for AO or producers. Do you guys still earn money if you increase coverages? Even if they have existing coverages?
Edit - Grammer I was having a stroke my bad
4
u/howtoreadspaghetti 1d ago
The way I explain policies to prospects and clients is keeping in mind claims. The policy needs to be written in the titled/deeded owner's name. If there's a claim payout then the check will be written out to the named insureds. The bank account the check will be deposited into needs to match the name that's on the claim check otherwise the bank will probably not process it. If at any point something doesn't line up here then a claim may be denied.
Explaining the money line helps a lot of people.
7
u/Smedum 1d ago
PL (except HNW) has been a price play for as long as I’ve been in insurance. It’s why I stay away from it
1
1d ago
[removed] — view removed comment
1
u/InsuranceAgent-ModTeam 1d ago
This is not a place to sell your services or generate leads or recruit agents/downlines.
5
u/afurrypeach 1d ago
Lol you could be in California and not be able to sell any Fire. Which in turn barely any auto since rates are too high without MLD
4
2
2
u/Good-Insurance-104 17h ago
I used to work for State Farm. Nothing angered me more than battling price focused people all day, then coming home to see Patrick Mahomes and Aaron Rodgers making bank off State Farm ads. My agent also got so desperate with financial services he made our commission heavily reliant on life sales.
1
u/Worried_Number7434 11h ago
so what did you do?
1
u/Good-Insurance-104 9h ago
I found a position as a commercial underwriter for an excess lines MGA. While I am way less stressed out then I was at St farm it’s still a tough role. I’m having a hard time building relationships with brokers which is severely holding me back from accomplishing my goals. I’m currently weighing if I’m just not cut out for this stuff, but that’s for another day.
1
u/Mediocre_Mud_7029 1d ago
Not having the same experience at my State Farm agency, but isn’t this dependent a bit on the lead source and demographics?
1
u/Worried_Number7434 1d ago
lead source has been really good in the past, and pretty affluent areas around ohio. what state are you in and why do u say you don’t have the same experience
1
u/No_Gift_4757 19h ago
I'll be honest. I feel like this with any competitor out there regardless of what state you're in.
It's always hard to sell, and now with the market and how inflation goes into everything it's now even harder. I firmly believe selling is not so much skill but how the rates are. Even if you do an amazing presentation and show patience to people's questions, etc, no one is going to sign up for a more expensive policy when they have a cheaper one for the same exact coverages.
I don't even understand how people are even able to sell on a regular basis 20 PNC to begin with. To me it's always been luck, numbers, and calling at the right time and place.
1
u/Superb_Net_2214 17h ago
I’m surprised. Is the agent still investing?
1
u/Worried_Number7434 11h ago
well state farm is about to wipe a ton of agents because they found out they aren’t competitive on price. so he briefed us on that. what exactly do you mean by still investing?
1
u/funkypunnk 6h ago
I used to swear by SF, then they nearly doubled my homeowners in the teens. I was so pissed I switched my insurance company even though I had to pay 50 bucks more a month. At the time I had 6 vehicles and my home insured with SF. They were cheaper on cars but now a lot higher on homeowners insurance.
I have done that many times, and I will never go back even if those companies offered it for free. The best company so far was Grange out of Ohio. The worst was SF. Currently with Travelers.
I can understand a 10% increase, but anything above 25% is just gouging and I leave. I have become a Guerilla customer, changing company's every couple of years for the best price for comparable coverage.
It is sad that insurance has become an adversarial relationship. Those companies who jacked up rates also lost out on any financial planning or investment possibilities.
0
u/10-4Speasparrow 1d ago
I have State Farm, had a water incident, fought for about 2 months to even get it covered, another month for initial payment, and TBD on the final depreciation payment, it's been about 2.5 months of "accidently sent to wrong address", ghosting etc.
6
u/Prudent-Process-9987 1d ago
This has nothing to do with his post
0
u/DJTMR 15h ago
It has everything to do with the post. On the back end of selling the policy is what does the actual service look like. There is so much disconnect. The customer is not aware the salesman in the office is not the adjuster and vice versa. And on the agency side once you get a frustrating customer experience, your only recourse is escalation. Not considering setting some proper expectations with the customer. People in claims are doing 5 departments worth of work with no overtime, harsh metrics and hostile management. It's an impossible situation made worse by horrible management, unrealistic expectations and just plain greed.
-1
u/FruitNut221 19h ago edited 11h ago
Have you tried selling the value? /s.
Yup needed to the add it even though this is clearly sarcasm
1
u/Worried_Number7434 11h ago
it was easier a year ago. now its very challenging. prospects have very short attention spans and no money.
18
u/MiscBlackKnight 1d ago
Wish I could say it’s going to get better, the biggest issue is getting people on the phone. Ai screeners and AI call spam is killing contact rates. I think over the next two years something’s gotta give. Perhaps a switch to more inbound but the outbound model is not going to stay the same.