It's no secret that selling insurance can be a lucrative occupation. But building an insurance business is also a challenging prospect with an element of risk. Rookie agents struggle to write enough policy to survive financially. Competition is fierce and success depends upon building repeat business.
Multi-line insurance agents fare the best because they offer customers many types of insurance. For example, when agents are limited to one line of insurance, such as life insurance, they leave themselves vulnerable to competitors because their customers must talk to other insurance agents who may also offer life insurance.
Why not have the ability to handle all your customer's insurance needs? There's no better way to keep your customers away from the competition.
In addition, multi-line agents get in front of more customers. Insurance sales is a numbers game, and agents who get more "at bats" write more policy. A universal insurance agent can get in front of clients interested in all types of insurance, and then cross-sell other lines.
A property and casualty license – also known as a P&C license – provides one of the best opportunities for maximizing "at bats." Most clients need to carry some type of property and casualty insurance, whether for their homes or vehicles.
A property and casualty license qualifies agents to sell a diverse set of policy types:
- Auto insurance
- Homeowners insurance
- Flood protection
- Earthquake insurance
- Umbrella liability insurance
- Workers' compensation insurance
- Commercial auto insurance
- Commercial liability insurance
- Commercial property insurance
Property and Casualty License and Residual Income
Property and casualty insurance policies also provide a source of residual income. For example, automobile policies pay additional commissions as they are renewed.
Building a portfolio of auto policies provides monthly income far into the future, providing extra income and a safety net during slow periods. This residual income is a key reason to obtain a property and casualty license.
Cross-Selling Possibilities with a P&C License
The multi-line insurance agent can also discuss other insurance needs with their property and casualty clients, such as life and health insurance. This opens the opportunity for cross-selling, one of the most effective ways to build a book of business.
Most people carry too little or even no life insurance. Knowledgeable insurance agents that are good fact-finders are able to determine their clients' needs, explain how much life insurance they should have, and help them fit the premiums into their budget. When a life insurance policy is sold in addition to a property and casualty policy, the agent profits with the larger life insurance commission and another property and casualty policy to build residual income.
How to Get Property and Casualty License – Requires Just a Little Extra Effort
Each state has its own licensing standards, but most follow a very similar process. Many states contract with Prometric, PSI, or Pearson Vue to administer licensing exams. Once agents earn the P&C license, they must take a continuing education course every two years.
Many insurance agents make the mistake of selling one insurance line. This limits their income potential and leaves them vulnerable to losing their clients to competing insurance agents who sell multiple lines.
Effective agents can also use their multi-line selling ability to save their clients money on their overall insurance spending. A property and casualty license provides a golden opportunity for insurance agents who want to build a multi-line business. Most people must carry property and casualty insurance, and offering to review their P&C coverage opens the door to other insurance options that are valuable to the client and pay lucrative commissions.
