If you’re not cross-selling insurance products, you’re missing out on easy commissions and increasing the risk that your clients will leave. You could also be leaving your clients dangerously exposed. There are many reasons why agents should cross-sell.
Imagine you go to the auto shop for an oil change. The mechanic sees that your tires are dangerously worn, but he doesn’t say anything because he doesn’t want to seem pushy. You asked for an oil change, so that’s all he does. The next week, you’re in an accident that you might have been able to avoid if you’d had better tires. You probably wish your mechanic had said something. If you realize your mechanic knew about the risk and failed to tell you, you’ll probably be angry. You might even think about suing.
When insurance agents fail to cross-sell other important insurance products, they’re making a similar mistake. Your clients count on you to advise them about their insurance needs, and they want you to help with as many lines as possible. Cross-selling insurance products is a win-win.
Your Clients WANT You to Cross-Sell
The average person doesn’t necessarily know what type of insurance they need, and they may not have time to spend researching insurance and comparing options. They trust their insurance providers to advise them on the coverage types they need.
Still skeptical that your clients actually want you to cross-sell? A recent LIMRA study found that 43% of people with car insurance want their auto insurance company to talk to them about their life insurance needs. That’s nearly half of insurance customers who would be open to buying another policy – but it needs to be offered to them first.
Multi-Line Customers Are More Loyal
The LIMRA study also found that 34% of auto-only insurance customers had been with their insurance company for more than five years, while 62% of multi-line customers had. Multi-line customers are simply more loyal.
Let’s go back to the mechanic analogy to understand how cross-selling can increase loyalty. Imagine you need an oil change, new tires, and new windshield wipers. Would you rather go to three separate places to get everything done, or would you rather go to one place that can do everything? Most likely, you’d rather go to one place. And if the place where you normally got your windshield wipers couldn’t handle the tires or oil change but another place could do everything, you might decide not to return to the place that only does windshield wipers.
It’s the same with insurance. Customers crave convenience, so agents who can cover all their insurance needs are very attractive. If you only offer one line of insurance, you’re telling your clients that they have to go to other agents to get their needs met. You’re essentially sending them straight to your competition! And if your competition can handle everything, you risk losing your clients.
Not Cross-Selling Could Put You and Your Clients at Risk
A woman comes to you to buy life insurance. She says she’s worried about how her family could make ends meet if they no longer had her income, so you sell her a life insurance policy with a death benefit large enough to replace ten years of income. A year later, she experiences a severe disability and can’t work. Only then does she learn about disability insurance and how it could have helped. When she learns that the Social Security Administration says working aged individuals are more likely to experience disability than death, she becomes angry that you never told her about disability coverage. She thinks about suing.
This scenario is exactly why DIS recommends agents have clients sign a waiver of liability form when they reject disability insurance coverage. It’s also why we recommend agents cross-sell disability insurance. Most people depend on their ability to earn an income, so income protection is simply too important to overlook.
Is Cross-Selling Ever a Bad Idea?
When you order a fast-food hamburger, you pretty much expect the cashier to recommend fries and a soft drink. Cross-selling is normal, and even when people decline the recommendation, it’s not typically seen as a big deal.
Of course, there are exceptions. If you order a hamburger and the cashier keeps trying to sell you chicken nuggets they have on special, even when you explain you don’t like chicken nuggets, you might get annoyed. Likewise, if your tactics are overly aggressive, or if you make recommendations that don’t actually seem to fit the client’s needs, you might be seen as pushy and annoying.
Then you have extreme cases like the Wells Fargo cross-selling scandal. According to the Department of Justice, Wells Fargo agreed to pay $3 billion after thousands of employees opened millions of accounts or products under false pretenses or without consent in order to meet unrealistic sales goals and cross-selling strategies.
That sort of story is why cross-selling sometimes gets a bad rap. However, as long as you’re doing the following, cross-selling can be highly ethical and mutually beneficial:
- You only cross-sell products that make sense for the individual. Disability insurance is a smart option for many workers who depend on a paycheck. However, it might not be suitable for everyone. For example, someone who’s about the retire probably doesn’t need coverage.
- You provide accurate information about the product. Clients should be aware of the pros and cons of their disability insurance options before they make a decision. (Client handouts are a great way to educate your clients!)
- You respect the client’s decision. If your clients reject disability insurance, you can have them sign a waiver of liability form. You also might want to make a note to follow up in the future in case they change their mind.
When Should Agents Cross-Sell Disability Insurance?
There are many opportunities for cross-selling:
- During new client assessments. If a client comes to you for help with a related product, such as life insurance, it makes sense to discuss disability insurance needs as well.
- After closing another sale. Once you close a sale for another product, you can mention that you’d like to discuss disability insurance next.
- During Disability Insurance Awareness Month. May is Disability Insurance Awareness Month, and it’s a great time to talk to your clients about paycheck protection.
- At an annual review. An annual review is the perfect opportunity to catch up on life changes and discuss the insurance implications, including the need for disability insurance.
In addition to these active cross-selling opportunities, consider passive opportunities. For example, you can invite clients to ask you about disability insurance in your email signature, social media profiles and website.
Cross-Sell the Easy Way
Maybe you want to cross-sell, but you’re intimidated by other insurance products. You’d rather stick to the lines you know well. For the reasons outlined above, that could be a big mistake. Agents should cross-sell, and failing to do so could harm both your business and your clients.
Besides, you don’t need to be intimidated by other products. Cross-selling disability insurance is easy with DIS by your side. We can help you navigate the entire process, from the initial quote to completion and submission of the application. Download our Supersize Commission Guide and take advantage of our free co-selling services.