Car insurance, what should I do next?

[Felixleung888]

Hi all, I am the social media KOL, now working as an introducer on car insurance to a broker firm, the latest 4 months I have 50 new customers referred to the broker and completed deal. One of the reason to close the deal first is due to the broker firm has few employees to take care the new sales and they work effective.

I have talked to the broker firm regarding the renewal commission, they replied to me the introducer only can get first round commission of 10% of the deal amount, future renewal I will have no profit on that, it is fair enough as I am just the introducer but I guess I can be a better position to have renewal income as I do know acquire new customer is difficult in today competitive market especially people tend to do compare price online.

Anyone could suggest me how I could not only get one off commission, but also get the renewal commission as well? Should I talk to other broker firms as a partnership? Or should I hire 2-3 people to start my own car insurance broker firm? Even buy a small existing car broker company to make things faster? I have 20 years experience running business in Asia so I guess I could handle a new start up if needed.

I can project to have 400 cars in 2-3 years only by myself recommendation to my social media members. Also I do have a good plan to expand my target market, but need a backup company that could take all my referral and I could take longer benefits.

Thanks in advance for your kind help

 

[Financial-Modeller]

Costs of compliance etc could exceed the value of brokerage commission on renewal of only 400 vehicles.

 

[Ian J]

If the insurer will only pay you for new introductions and not for renewals what is to stop you moving them away to another insurer at the end of the year

 

[kulture]

In general, everything in business is down to negotiation. To the broker, there is clearly a value to marketing, which brings in customers, whether you call this advertising, or an influencer, or whatever. Renewals, however, likely, bringing less commission and need less marketing

Without more details regarding why you are successful and what your USP is, it is difficult to know what if anything you can do to get ongoing commission.

 

[JEREMY HAWKE]

If the insurer will only pay you for new introductions and not for renewals what is to stop you moving them away to another insurer at the end of the year

I like this as a business model returning customs will trust you and use you more if it looks like you will save them money on renewal

 

[Ozzy]

I like this as a business model returning customs will trust you and use you more if it looks like you will save them money on renewal

This is how a couple of meerkats make their living, along with some purple Mission Impossible types, and so on. It's a long established tried and tested model for all types of insurance and many other services now these days (energy, etc)

 

[JEREMY HAWKE]

This is how a couple of meerkats make their living, along with some purple Mission Impossible types, and so on. It's a long established tried and tested model for all types of insurance and many other services now these days (energy, etc)

and after doing some insurance on our cottage with two sets of deeds for the house and workshop they gave me £40 of Halfords vouchers last week

 

[Felixleung888]

Costs of compliance etc could exceed the value of brokerage commission on renewal of only 400 vehicles.

Thanks for your advice, you are true that 400 cars are not significant, and will not be able to cover the cost of the company, but I am just looking for my part ongoing profit if insurer willing to split from their every contract profit margin. Once again thanks for your input.

 

[Felixleung888]

If the insurer will only pay you for new introductions and not for renewals what is to stop you moving them away to another insurer at the end of the year

Thanks for your input, this is what I am doing for now, finding both small and large firm for partnership, in parallel I am still checking the possibility to have my own broker company, any idea to find the list where people looking to sell the company?

 

[DontAsk]

Do what recruitment consultants do and phone round all your clients when they are close to renewal and offer to get them another deal.