Gathering Assets At An Insurance Company

12 replies [Last post]
ChrisVarick's picture
Offline
Joined: 2008-09-04

To everyone that's an agent at a stock/mutual insurance carrier, how has your success been with gathering assets? I have been fairly successful at selling life insurance policies my first year in production, but that has largely been due to the fact that I have hustled 12 day days consistently. I've come to realize that somewhere down the line, I will no longer have the energy to write life apps and/or do term conversions. My original intention in being a career agent was to ultimately do comprehensive planning anyways, so as I begin to start gathering assets, a lot of clients have started pigeon-holing me as an insurance only guy.
What is your process to gather your client's assets after the insurance sale? How do you approach them? How much total assets do you have under management? By managed assets, I do not personally consider fixed/variable annuities as part of the equation. 

buyandhold's picture
Offline
Joined: 2008-09-23

Not sure why you don't want to count annuities. I would think the natural progression would be for you to call your insurance clients and say, 'We've insured your life, now would you like to look at some ways we can insure that you can have a good retirement.'

ChrisVarick's picture
Offline
Joined: 2008-09-04

buyandhold wrote:Not sure why you don't want to count annuities. I would think the natural progression would be for you to call your insurance clients and say, 'We've insured your life, now would you like to look at some ways we can insure that you can have a good retirement.'
 
Because with fixed annuities and variable annuities, there is a lot less service work involved versus just managed accounts. Just wanted to see how everyone is balancing their life insurance portion of their business versus the investment side or how to even transition their practice towards that area.

Fred Garvin's picture
Offline
Joined: 2009-07-12

I am at the end of my first year with an insurance company as well. I have had a good year, but more of my business has been in annuities and investments than life insurance. I believe it is how you position yourself with the client at the beginning of the relationship. I always make it clear that insurance is only a part of what I do, that our process and offering encompasses a lot more than that. That way, anything uncovered during fact finding could present an opportunity.

ChrisVarick's picture
Offline
Joined: 2008-09-04

What size accounts were you able to rollover? How were you able to do it? What is your approach talk?

aeromaks's picture
Offline
Joined: 2007-01-13

um... if you are getting financing... trust me, your GA doesnt care about investment business.  He needs you to keep on writing life apps.  You have to make it clear to your clients you are a financial advisor, and insurance is the backbone to any financial plan.  After you have the bases covered, you go for the investment business.If you are not getting financing.... stop wasting your time and go independent.  Higher payouts anyway.

anonymous's picture
Offline
Joined: 2005-09-29

How would going independent give a good producer higher payouts?
 
A good producer at an insurance company is getting a payout of higher than 80% on GDC, isn't putting any insurance business through the grid, is getting free rent, pension contributions, 401(k) match, proprietary insurance business treated as W-2 income, health insurance, etc.
 
Chris, if you are being pigeon holed, it has something to do with how you are presenting yourself.

Fred Garvin's picture
Offline
Joined: 2009-07-12

ChrisVarick wrote:
What size accounts were you able to rollover? How were you able to do it? What is your approach talk?
 

I am assuming this was directed to me.  Most of the accounts are $50,000-$200,000. I have one that's $700,000 and hopefully will have one larger than that in a couple of weeks.

 
I was able to do it by doing what I outlined above. Early on I let them know that our firm's main focus is protecting and positioning assets for retirement. Then doing the fact finding will either lead you to the insurance products for protection, or the investment vehicles that align with their age, risk tolerance, etc.
 

aeromaks's picture
Offline
Joined: 2007-01-13

anonymous wrote:How would going independent give a good producer higher payouts?
 
A good producer at an insurance company is getting a payout of higher than 80% on GDC, isn't putting any insurance business through the grid, is getting free rent, pension contributions, 401(k) match, proprietary insurance business treated as W-2 income, health insurance, etc.
 
Chris, if you are being pigeon holed, it has something to do with how you are presenting yourself.Unless you are working at Met, there is no grid.  Furthermore, as a captive agent, what your GA passes on to you, is at least 40% lower than what you get paid as an independent going through a FMO/IMO.As far as working for an insurance company, you must of not worked for one.  You PAY FOR:Rent, office supplies, E&O.Your rates for health insurance are the same if you bought it yourself.  Alot of full time producers work out of their homes, as in the insurance field, you do go to visit the client more often than not.Comparisson, when I was captive at Mass, I got 45 to 50% street comp as captive, with up to 30% overrides and credits.  I can now pool my business through a FMO, and get upwards of 90 to 100% on the same policy.  Furthermore, I am vested in that policy day 1.  As a captive, you are not vested in your own business for a few years.Lastly, even if you are an independent going through a local GA, you get same or higher.the grid basicly applies to securities transactions, and even there, you pay all your own licensing, and ticket charges.You work for an insurance place to get great sales training. 

aeromaks's picture
Offline
Joined: 2007-01-13

aeromaks wrote:
anonymous wrote:How would going independent give a good producer higher payouts?
 
A good producer at an insurance company is getting a payout of higher than 80% on GDC, isn't putting any insurance business through the grid, is getting free rent, pension contributions, 401(k) match, proprietary insurance business treated as W-2 income, health insurance, etc.
 
Chris, if you are being pigeon holed, it has something to do with how you are presenting yourself.Unless you are working at Met, there is no grid.  Furthermore, as a captive agent, what your GA passes on to you, is at least 40% lower than what you get paid as an independent going through a FMO/IMO.As far as working for an insurance company, you must of not worked for one.  You PAY FOR:Rent, office supplies, E&O.Your rates for health insurance are the same if you bought it yourself.  Alot of full time producers work out of their homes, as in the insurance field, you do go to visit the client more often than not.Comparisson, when I was captive at Mass, I got 45 to 50% street comp as captive, with up to 30% overrides and credits.  I can now pool my business through a FMO, and get upwards of 90 to 100% on the same policy.  Furthermore, I am vested in that policy day 1.  As a captive, you are not vested in your own business for a few years.Lastly, even if you are an independent going through a local GA, you get same or higher.the grid basicly applies to securities transactions, and even there, you pay all your own licensing, and ticket charges.You work for an insurance place to get great sales training. Btw, your overall grid is still tied to proprietary products, product mixes, etc.  You can stick with an indy b/d and get the same payouts, if not higher, or just go RIA and keep all of it. =)... and oh yeah... at any point in time your GA/Manager came come in, tell you you are fired because you are not producing enough insurance.  As a manager at Mass, my comp was tied directly to overrides on proprietary products.  a Manager made nothing on investment business, only the BD and agency owner make that small 15% haircut... and how long do you think they would want you to be doing that.Going to an insurance company to be a an investment advisor is the same as going to a wirehouse and being an insurance producer.  You can, but why would you?

anonymous's picture
Offline
Joined: 2005-09-29

Aeromaks, what you wrote is correct for a small producer, but incorrect for a large producer.  

BerkshireBull's picture
Offline
Joined: 2009-06-10

Aeromark,I have a hard time believing someone is going to run around at an insurance company doing a significant amount of investment business while not meeting minimums on the insurance side.  No Branch Mgr is going to let a decently producing agent/advisor go because they don't like their mix of business.

ChrisVarick's picture
Offline
Joined: 2008-09-04

Aero,
 
Some of the things you said were correct to some extent while others were incorrect. With rent and E&O insurance, we get reimbursed for that so it depends largely on which firm you're with and to some degree, your GA as well. You're right in the aspects of our health insurance, I'm paying the same cost I would if I were to buy it myself. Insurance products do go through our company's grid and only ends up paying us 50% plus 20-40% override (depending on what kind of producer you are) so yes, if I were to go independent, then I would probably be getting the entire 100% premium instead regardless of my production level. However, as long as I meet contract MINIMUMS, I can directly go through other insurance carriers anyways and still get the full pay out. I just wouldn't be best friends with our GA. Fixed annuities pay us 3-4% and variable annuities pay us 4-5% plus a little override so in the end, it's virtually the same as an Indy B/D.
 
At an insurance firm, a producer gets anywhere between 50%-90% payout for investments depending on your GDC level. However, we are limited in what kind of securities we are able to solicit. In a nutshell, I'm where I'm at because I'm a new producer and this is able to help me get my fet weet. If I do well here (which I will), then there is absolutely no reason for me to leave. However, if I don't I should have enough experience and a track record for a bank to take me in.

Please or Register to post comments.

Industry Newsletters
Careers Category Sponsor Links

Sponsored Introduction Continue on to (or wait seconds) ×