How is business? Here's today's activity...

[d's insurance store]

Well, maybe you weren't inclined to ask how business is...but here's a couple of experiences from today.

First, a beginning year visit from one of my marketing reps for personal lines. This is my number two carrier, that is falling in rank because of their current rates. We exchange pleasantries while he looks over and comments on volume and losses and so on. Then he proceeds to let me know he's put his home up for sale 'because he needs to downsize in the current economic environment'.

We next turn the discussion to anticipated growth with his company and I say, 'I have no idea where the market is going. With your company's current rates on personal lines...maybe, maybe not'. He cocks an eyebrow and says 'so you may shrink?'

Well, with that, I pipe up and point out to him that he should be looking at his own situation and circumstances. Hello! He's in some kind of economic pinch, the severity of which, I have no knowledge, but nonetheless, he's downsizing. I point out to him that once (if) his home sells, his agent will cancel the policy and lose premium and commission. Then if he becomes a renter, he'll perhaps acquire a renter's policy at greatly reduced premium and commission. If he buys a condo, then the same outcome may take place, and if he buys a smaller, less expensive home, then once again, a smaller policy is put on the books, and he may shop that policy around even though he works for a carrier.

I then tell him that his own experience is multiplied thousands of times over right now in the insurance marketplace. And so, his question or challenge about potential growth has some behind the scenes factors evolving. I don't think he 'got it', but maybe the lightbulb will go off in his head later.

Then, later, I receive a prospecting phone call from a commercial cluster group. This is a fairly large one that I approached about a decade ago when I first launched my agency. At that time, they pooh-poohed me and wanted nothing to do with me because I was new to the independent agency force and didn't have anything to bring with me. Oh well, I moved on, acquired direct appointments and relationships with a couple of MGA's who pretty much fill my needs in the commercial marketplace. I relay that to the phone soliciter for this group and say that most likely, I don't have enough commercial new biz to warrent another relationship...and then point out that things must be slow, for them to now be calling me off a general list of agencies to see if I want to begin a relationship. He says, yes, volume, premium and commissions are down and they're now in the position of hustling up new business from where ever they can...

Just another day in paradise.

[BarefootIA]

People do tend to think that the insurance industry is rock solid and that we arent affected by this economy. They think that since you HAVE TO HAVE insurance, that insurance agents are just rolling in dough. We have our moments too. Just because insurance is mandatory doesnt mean we are getting rich from it. I lost a lot of business over the last 12 months due to homes foreclosing. Spinning wheels to make it up on the new business so I dont have lay anyone off, although laying myself off is looking quite attractive!!!!

[ED3771316]

Seems we are proving everyone wrong. Many of my agent buddies are sweating their jobs, houses, ect...

A Marketing rep that is down sizing himself and is surprised by a lack of a growth goal?

Not sure where the place to be is at right now.

Time to play the Lotto.