Set Rules Before Engaging A John To Avoid An Uncompensated Screwing

By Charles Specht, CIC, CDA – Charles Specht, CIC, CDA – Helping P&C & EB Brokers win new clients as I negotiate lower insurance premiums for Business Owners by as much as 55% annually

Do you ever set the “Rules of the Game” with your prospects BEFORE you go through the quoting process? You should! If you don’t, this will happen…

You’ll likely get used.

They’ll use you as the Honesty Cop, to keep their current agent “honest” in the bidding process. This issue is a major contributor to why the incumbent agent retains their client 92% of the time.

I think it’s amusing (I actually do chuckle 🤣 ) when agents don’t set the rules of the competitive bid process with their prospect and then get all upset that the insured took their quote and gave it to the incumbent agent. I understand why they’re mad (Remember: I was a broker for 10 years), but if you NEVER ASKED THE INSURED NOT TO SHARE YOUR QUOTES then you don’t have a leg to stand on if the insured does.

After all, the insured is just trying to get a good deal, with an agent they like, for the least amount of premium possible. And, if they give the incumbent agent a copy of your quote, the incumbent agent’s quote will miraculously get re-quoted and will decrease.

The insured wins. The incumbent agent wins. You lose!!!!!!!

So, if you don’t set the Rules of the Game with the prospect up front, it’s your own fault. I don’t blame the insured one bit. Not even in the slightest. Nor do I blame the incumbent agent. In fact, if I was the incumbent agent I would be happy my client shared a competitors quote with me.

(Wouldn’t you?)

If you plan to throw mud against the wall (aka: offer quotes to non-clients), you should get buy-in from your prospects on three key things:

1️⃣ You get access to the markets you know you need in order to be competitive.

2️⃣ You and the insured agree to what you have to accomplish in order to GUARANTEE that the insured will fire their agent and hire you.

3️⃣ You get the insured to agree not to share your quotes with any other agents.

Frankly, it’s best not to quote at all for non-clients. That’s why you should target the Broker of of Record Letter.

But if you decide to try your hand at mud-slingin’ then I suggest you get those three things.

If you don’t, then I can already guess, with 92% accuracy, how that’ll go for you.

And then I’ll chuckle. 😆