For many property and casualty agents, non-P&C products represent a relatively small piece of the pie. For some, they're nonexistent. In addition to missed revenue opportunities, neglecting other products can present real danger.

"I often ask agents who sell nothing but P&C products how they handle requests for life insurance," says Phil Burchman, senior vice president at Morstan Plus. "Common responses include, 'Well, I send them to a friend' or 'I just send them away.' I've never understood how an agent could send a client elsewhere and run the risk of losing his or her existing business."

A better alternative, he believes, is building capacity-internally or otherwise-to deliver life and other benefits-related products. Expanding focus can help agencies not only grow their revenue, but also keep business they already have on the books.

To make the shift, Burchman recommends starting small. "For P&C agents who are also life-licensed, keeping it simple is very important," he explains. "Grabbing onto one product or one idea initially has led to the greatest success for most P&C agents I've seen venture into the life insurance arena."

He points to term life as a good starting point. "There are several reasons it's a good fit," he notes. "First, because property and casualty producers are writing homeowners insurance, they usually know when someone buys a home. Usually there's a mortgage involved, so it's a perfect time to suggest mortgage insurance, which is in fact life insurance."

He also recommends starting with term life because it's relatively simple to understand. "There are not a lot of moving parts," Burchman notes. "It's something that can be brought up in the conversation, almost like an item checklist, and addressed immediately. 'We've insured your car. Check. We've insured your house. Check. We've insured your jewelry. Check. Have we insured your life? Hmmm. Let's look at that.'"

Marlin Bollinger, CFP, CLU, ChFC, CFS, CAS, president of The Bollinger Group, suggests sticking to familiar territory-the concept of risk. "We offer something called Total Risk Analysis," he says. "We teach P&C agents how to address and analyze what we call 'human asset risk.' The concept aligns very neatly with what P&C producers already do for other kinds of risk." Life insurance, and not just term, often surfaces through this analysis. But so does disability income insurance.

"There's really a synergy there for P&C agents," Bollinger notes. "It's easy for producers to say, 'We've worked with you with your property risk and your casualty risk, but we've never really talked to you about you.' This is especially important for commercial accounts. If something happens to the person who's the main driving force behind the business, what would happen? Disability income insurance can address that potential exposure."

Making the case
Using such "what if" scenarios is a good way to incorporate these products. "Ask a business owner: 'What if you got in an accident and didn't recover all the way? Would you sleep better tonight knowing we were working on some solutions to the human asset risk you face?'" Bollinger suggests, "That would be a disability sale."

Or ask: 'If you own a business and you became disabled for a period of time, how would you cover the business overhead?' "That kind of question is similar to what an agent might ask a business owner in the casualty arena," he adds. "The solution is to use a fact finder to identify expenses the company incurs and address them with a disability policy."

Life insurance needs can be addressed with similar questions. "It's important to look at all human asset risks," Bollinger points out. The questions don't all need to be addressed in person. "Agents and brokers we work with have found success using letters and emails to broach the subject. It's a natural extension of consulting and education they do on all types of risks. Get clients and prospects to understand the various risk categories, and then let them decide if and how they want to address them."

According to Burchman, selling life insurance has become increasingly simple. "Over the last couple of years, a growing number of carriers and programs have adapted and now allow people to apply for life insurance without paramedical exams, blood tests or urine samples," he explains. "The process has become so much easier that a P&C agent can literally sit at his or her desk and place an order without a lot of paperwork. Some companies even handle everything by phone and use voice print authorizations."

Bollinger concurs. "The use of multi-company online quoting platforms really simplifies the process of P&C agents bringing together clients and carriers," he notes. "The process looks at the client's needs, as well as his or her health history, and quickly filters the data and explains why certain options might fit better than others."
He says the entire procedure can take less than 30 minutes. "So it's very cost-effective and efficient for property/casualty agents," Bollinger adds. "It's effective for the customer as well because we know we have provided the best product available based on the criteria we put in."

Overcoming barriers
Roadblocks sometimes show up when a P&C agency is expanding to offer more life or benefits products. Some are internal. "Many property/casualty agents and brokers have not done a lot of life insurance sales, even though they might be licensed for it," Burchman observes. "They are uncomfortable with the sales process."

Bollinger also sees a perception issue when it comes to life insurance sales-and salespeople -and it's something his firm works to overcome. "P&C producers view life producers as being a little bit different-perhaps like a gorilla in a suit or a used car salesman," he notes. "They also talk of life salespeople doing harm to good P&C accounts. We recognize the perception and fight it by approaching the business with a totally service-oriented platform, extremely professional and completely organized."

Burchman acknowledges that a life sale is a little different from what most P&C producers are used to. "When you get a car, you need auto insurance," he says. "When you buy a house with a mortgage, you need homeowners insurance. Life insurance doesn't carry with it such a demand, legally or otherwise. So there's sometimes a reluctance to raise the subject, which agents and brokers need to overcome."

He says those producers who bring it up often find considerable success and points to a Long Island broker he's worked with as an example. "I had spoken with him for several years about approaching his clients about life insurance," he says. "I worked with him and showed him some opening lines he could use and questions to ask his client."

One question was, quite simply, "When was the last time someone reviewed your life insurance?" According to Burchman, "Lo and behold, the broker tried the technique a couple of times and it worked both times. From that point on, he asks every single client about life insurance."

Bollinger says success is contagious. "When we get a believer-when one person has some positive results-others follow," he explains. "All it takes is one nice case and then everyone jumps on board. That's why it's important to zero in on someone who is open to the concept going in, then work with him or her and get some nice successes that rub off on everyone else."

Building success
One way to successfully expand beyond P&C, particularly for smaller agencies, may be to find a service-oriented firm to help. "Larger agencies may have their own in-house life agent or department," Burchman notes. "If they don't, finding a resource to serve as a back-room office and a complete support staff is a great way to educate producers and support them as they expand their business."

Bollinger adds, "It helps to have a formal program within the agency that is both consistent and ongoing. We work with agencies to help them see the benefits and then implement and execute a program." On-site meetings, back office support and collateral material are part of the offering.

"The biggest message for agents and brokers is that they need to recognize their role as a professional," Burchman notes. "They've already established the relationship, and they can strengthen it by offering a full range of products."

One way to guarantee failure is to avoid the topic. "One of my favorite quotes is from the greatest hockey player of all time, Wayne Gretzky," he says. "He said, 'You miss 100% of the shots you never take.' I use that all the time. Agents just need to bring it up."

He adds, "In the end, it's an opportunity for producers to provide an additional service for an existing client, and that puts another arm around the client to protect him or her from going anywhere else."