March 2010
The Need for Speed Is Bigger Than Ever
Health Care Reform's Cost Squeeze Likely to Force Agents to Become More Productive — Or Else.
Although the new health care reform will bring opportunities, it will also add pressure for agents and brokers to increase their volume and speed.
For starters, many of the new prospects entering the market through the insurance mandate will be younger Americans, most of whom are used to buying everything from shoes to airline tickets on the web.
These younger shoppers are used to fast online service, often without having to speak with a salesperson.
Another source of pressure may be the 80% minimum medical loss ratio established by the new law. Health insurance carriers across the nation will now be required to spend 80% of every dollar collected from premiums on medical and health coverage.
What kind of effect will these changes have on your commissions?
The good news is that agents can and will thrive in this new environment. But they’ll need to be more productive, more efficient and faster.
Here are three ways that you can get ahead and stay ahead of the pack.
1. Interactive Website
It’s midnight and a health insurance shopper comes to your website. Will that prospect be able to shop and apply for a plan there and then?
If the answer is “no,” then you’re probably also saying “good bye” to a large percentage of the new health insurance buyers who will be required to purchase health insurance.
Remember that the majority of these new prospects are in their 20s and 30s. They’ve never known a time without computers. They’ve been using the web since they were in high school.
They won’t be satisfied with a basic website that’s nothing more than an online brochure. You need a website that allows shoppers to compare different insurance plans and features — on their own. You also need a website that allows insurance shoppers to actually complete and submit an application.
In addition to making it easier for many of your new prospects, having a fully interactive website can also provide you with tremendous benefits:
- Faster decisions. Websites with smart e-app technology will flag mistakes while the consumer is filling out the application, which reduces the need for corrections during underwriting.
- More free time. Agents are already reporting earning commissions on new website clients — without speaking with that client.
- Greater satisfaction. Your prospects can shop the way they want to… either completely online or by calling you.
Fortunately, advanced agent websites with all these features and benefits are already available. And they can cost less and do more than many custom websites.
2. Communication Tools
Although many of your new clients may prefer self-service web tools, most still need to communicate with you.
Some may need more convincing before they’re ready to buy. Others may need your help while they’re shopping or completing forms.
Regardless of your prospects’ communication needs, you need to take advantage of all the tools at your disposal:
- Phone. High gas prices and the need for greater productivity has done away with the traditional “kitchen table” sales of the past. Top producers know that the key to higher sales is mastering the art of closing over the phone.
- Desktop sharing. In the past, phone sales have been hampered by the inability to share the same forms and brochures with your prospect. Not anymore. With web conferencing and desktop sharing tools (such as the BrokerOffice Web Meeting tool), your client can see the same documents, forms and quote engine pages you’re viewing.
- Email. Email marketing is the power tool for lead nurturing unclosed leads, without taking much of your time. For as little as two hours a week, you can maintain an email marketing program that hits thousands of prospects with individualized quote updates.
Together, these tools will increase your productivity and speed… while helping you guide more of your prospects to a buying decision.
3. Lead Generation
How much time do you spend on marketing, instead of selling?
Yes, lead generation is important. But top producers understand that they get paid for closing leads, not generating them. The more time you have to spend on marketing and lead generation, the less time you’ll have for nurturing and closing leads.
For many agents, the fastest way to improve their productivity and efficiency is to consider how they’re generating the leads that fuel their closings and commissions. The solution is finding an insurance lead provider with a proven track record:
- Volume. You need to partner with insurance lead providers who can reliably provide a steady stream of qualified health insurance leads.
- Quality. You also need a lead provider who can deliver quality leads and stands behind their commitment with a generous lead replacement policy.
- Management. As your volume necessarily increases, you need to have a lead management system that will make it easy to stay on top of all the leads in your pipeline.
Looking Ahead
The more complex the legislation, the more chances for unseen consequences to arise. That principle will undoubtedly come into play in the coming months and years, as this new law is implemented.
But some of the outlines are already apparent. It will increase the number of people who will be buying individual health insurance policies. There will also be pressure on insurance carriers and agents to increase their efficiency and productivity.
By using the tools now available — and already used by top producers — you’ll be better able to position yourself to take advantage of any opportunities that do emerge.
