CH 5/6 B Flashcards
Identify the nine most common sections of a brokerage agreement
1 Authority
2 Ownership of expirations
3 Billing Procedures
4 Commissions
5 Termination
6 Hold Harmless
7 Privacy Act
8 SDI Provisions
9 Other Provisions
Identify six key factors to consider when selecting and building a relationship with an insurance company
1 Marketing philosophy
2 Claims service
3 Exclusivity
4 Policy Holders Services
5 UW Procedures
6 Financial Stability
Explain the role of the Property and Casualty Insurance Compensation Corporation (PACICC)
Ensures money is available for all claims involving insolvent insurance companies
Identify the seven factors insurance companies use to recognize the suitability of a brokerage for appointment
1 Premises
2 Financial Information
3 Type and mix of business
4 Loss Experience
5 HR
6 Business Plan
7 E+O Claims
Three stages believed to compose the evolution of marketing
Marketing as a toolkit - 4Ps
Marketing as a strategy - segments, differentiation, positioning
Marketing as a culture -built in
4 Ps
Price
Product
Place
Promotion
Distinguish between promotional advertising and corporate advertising
Promotional advertising is to a specific segmentation. Corporate is more broad.
Explain the concept of direct marketing
Direct marketing is specific targets based on the brokerages existing knowledge of the client.
Define differential advantage
Any feature or product offered by the brokerage that differs from competition. 24/7 services, online
Explain market segmentation
Consists of individual clients who have similar needs and wants
Distinguish between top-down and bottom-up market segments
top down - start w/ the mass market, and divide into smaller segments
Bottom-up - Segments currently being serviced and how to target clients in the future
5 most commonly used categories to identify client segments
1 Demographic
2 Geographic
3 Psychographic
4 Behavioral
5 Relationship variables
Give an example of age
Children, teens, young adults, middle aged, boomers
Give an example of Gender
There are more women starting their own businesses
Education
grade school, high school, college/uni - they ask more questions and it is telling of their occupations
Ethnic background
clients preferences for products and services
3 most important geographic characteristics used to segment
City Size
Urban/Rural
Climate
Psychographics
Personality
Social Class
Lifecycle
Behavioral Values
Shopping habits
Payment methods
Types of policies purchased
Target Market Strategies
Align w/ goals
Align w/ image
Match resources of brokerage w/ target market
Elevate segment potential
Seven typical Steps to the sales process
1 Prospect + Qualify
2 Set objectives
3 Make the initial contact
4 Probe for needs
5 Present the proposal
6 Overcome objections
7 Follow up
Six-step process used by purchasers
1 Problem recognition
2 Identify and analyze solution
3 Identify sources
4. Compare and decide
5 Make purchase
6 Evaluate
