5 Ways to Guarantee a Larger Profit Share Check in 2023

5 Ways to Guarantee a Larger Profit Share Check in 2023

Have you locked in your 2022 Profit Share checks?

How did you do? Hoping to do better in 2023?

Instead of hoping to do better, let’s get a plan in place to make sure that your 2023 Profit Share Check is larger than 2022.

As an insurance agent, one of the ways you can increase your profit share check is by implementing effective risk management strategies for personal lines policies. By managing the risks associated with these policies, you can reduce the likelihood of claims and losses, which can increase your profitability.

Let’s look at 5 ways to guarantee a larger Profit Share Check.

1 / Become a Trusted Advisor

I saw my personal production take a huge jump when I stopped focusing on solely price and started focusing on giving advice.

I get it, price will always be important… until it’s not.

I am sure that you have heard the cliches before. No one has ever cared about their premium when they have a claim.

That is why I stopped focusing on price in my conversations with prospects and started focusing on giving them advice and solving problems for them. Here’s the crazy thing, a lot of them time they didn’t even know about a potential problem until I pointed it out to them.

I built RiskAdvisor to help you do this. Our step by step process is going to guide you through the conversation so that as situations pop up you can start planting those seeds right away.

Because of this, you can start telling them how you plan to solve their problem all while building rapport.

What is this going to do for you? It is going to lead to a higher closing ratio, a higher retention rate and increased revenue.

All of which are going to then lead to a higher profit sharing check.

2 / Educate your clients and prospects about their risks

I hit on it a bit above but I wanted to expand upon it here.

When I started educating my prospects I immediately saw an increase in my closing ratios. Increased closing ratios meant I could afford to spend a little more time with each prospect. Spending a little more time with each prospect meant that I was able to spend time educating and not just selling.

What does educating your prospects actually mean?

It means taking the time to explain what a 2% Wind/Hail deductible actually is (btw, if your proposal only says 2% instead of what dollar amount that 2% actually is I am going to beat you every single time).

It means explaining the difference between Market Value and Replacement Cost.

RiskAdvisor is going to put you in a position to do that. With our new AgencyProposals platform, it’s going to make it even easier for you, too.

So, how is this going to make you a bigger check?

One of the major reasons we are seeing HUGE increases across the country is because Replacement Cost Estimators SUCK.

I talk to builders and contractors at least quarterly to get a real idea of what it takes to build or rebuild a home. At least in my market the real numbers are 20 to 30% higher than what the RCE says.

Why does this matter?

If carriers are not charging the proper amount of premium for a risk they are going to get killed on their ratios at claim time. This will ultimately be passed along to you and impact your Profit Sharing Check.

3 / Propose an insurance plan based on value not price

I always start my proposal (shoutout to QuoteVids from Advisor Evolved) with a breakdown of the coverage and protection that I am providing.

I never start on the premium summary page.

Starting here will ultimately lead to a disinterested prospect if they see a premium that is higher than what they are paying or expecting without knowing what value comes along with that premium.

Changing this methodology will pay HUGE dividends for you.

I challenge you to give this a try for Q1 and I guarantee you will see higher closing ratios, increased premium and an increased Profit Sharing Check.

Having a Risk Management platform that is going to help you along each step of the way is vital.

With RiskAdvisor, we will assist you throughout the entire process, from the discovery call to renewing the account, year after year.

4 / Offer an Umbrella – every single time.

Want to see your success sky rocket? Take the time to propose an umbrella every single time.

I never ask if they would like an umbrella quote.

I guide them through evaluating their Estimated Liability Risk. (Here’s an article I did a while back that gives you my script)

Selling an Umbrella policy to your prospects may not lead to a ton of extra premium but it will absolutely increase not just your closing ratio but more importantly, your retention ratio.

I am biased but RiskAdvisor’s Estimated Liability Risk is my favorite part of the platform.

5 / Focus on Data

It’s incredibly important that you start focusing on Data.

Data in the insurance industry has been a buzz word for some time now but with each passing year it is becoming more and more important.

When you start placing an importance on the data that you are intaking you will see the quality of accounts that you are writing increase.

When you look at a prospect’s true risk you will be able to better communicate that risk to them. This will lead you to closing policies with more comprehensive coverage as well as cross selling vital policies.

RiskAdvisor structures your data for you and helps you bridge it over to multiple spots at the same time. We also understand the importance of communicating this data to you so you can relay it to your insured. I am really excited about the updates to Data Pre-Fill that we will be releasing shortly.

Maximize your 2023 Profit Share Check with RiskAdvisor

RiskAdvisor will help you improve your profitability and implement efficient strategies. Our platforms offer helpful tools and resources, so you can take charge of your Profit Share Check.

Start using RiskAdvisor today!

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