Selling Life Insurance/becoming an 'appointed representative'

[andy1978!]

Hi,

I've run a lead generation business for the past 3 years selling our leads to various IFA's/Companies. I'm interested in becoming an 'appointed representative' and converting the leads myself 'in house'. We produce up to 300 real time LI and PMI leads daily but I only have minimal experience in sales. If anybody could point me in the right direction it would be much appreciated.

Thanks in advance

 

[BTON Agency]

Its pretty simple you will be pleased to hear.

You either need to get Cemap or you maybe able to work under a network / local adviser who may allow you to write business with it being signed off.

If you do go the cemap route (i advise you do) do not bother going directly authorised, expensive and time consuming. Work off a network, they will take between 10 - 40% of your fee but cover a whole host of things.

If you are interested best to partner with someone, especially as you have that many leads! - You will be fighting people off.

I use to do mortgages and have since set up an estate agency but looked back into selling life insurance as its a nice easy sell and you if you are clever taking the money "On drip" you will set up a very nice income in no time.

 

[andy1978!]

Hi,

Thanks for that info. Just a few questions that i'd be grateful if you could help me with. I have looked in to the Cemap route previously but I was advised that it wouldn't be beneficial for me as I had an IVA 6 years ago and any network would be wary of working with me. Is this the case?

If so would my old IVA prevent me from working under a network/local adviser?

Why do you advise the Cemap route over working with a network/local advisor?

Have you any ideas/tips on the best way to find/sign up with a network?

Any info/advice is greatly appreciated!

 

[BTON Agency]

Depends on network / practice really the IVA if it's 6 years and settled may not be as big a problem as you think.

If you are taking the commission on the drip it is also less a risk and they may make that condition instead of it all up front with a four year claw back.

I would say get cemap qualified as you can then keep them as your clients. If you write the business and put through another broker you may loose the client and future income. In the process of speaking to some networks myself will make some enquires for you.

 

[tony84]

You do not need CeMap to do life insurance.
Cemap 1 (as in the first of 3 exams to obtain cemap) would be beneficial as ithelps with the rules and regulations but it is not required for insurance alone. Alternatively you can do CF1 or RO1.

A network is probably the best route initially as they will help with everything and will just take a cut of whatever you earn.

The IVA will be an issue with some networks, the lack fo experience will be an issue with some networks, the trick here is to find one that does not mind either.

Personally I do not buy insurance leads as they are notorious for coming off, resulting in clawbacks. You are going to need to satisfy any network that you have enough capital set aside for clawbacks. Which in itself could be another issue.

 

[andy1978!]

Thanks both for the info. Capital will not be an issue for us as we've built a successful business selling the leads for the past 3/4 years. I've got an employee who is in the process of completing the Cemap1 ( she has passed her first exam) and has a good credit history. So if any of you know any partners that may be interested in this opportunity that would be great.

Out of interest does anybody know the industry average for claw backs? This would enable me to 'crunch some numbers' as I know our conversion rates and commission values.


Many thanks

 

[tony84]

It depends on your business model. If you are a call centre, I would budget for about a third.
If you are face to face then probably closer to 10%.

 

[andy1978!]

Thanks Tony. It would be a call centre and we'd be planning on taking the commissions 'on drip'.........Last question! Do you guys know the time frame for claw backs? Many thanks again, I've found out more on here in two days than I have searching google for weeks!!

 

[tony84]

It varies, some are 2 years and others are 4 years.

I think you need to do your sums. You are going to need some mighty big cash reserves.

You tend to get 180-200% of the monthly premium as the commission. So lets assume a £10 amonth premium, that will generate £180-200. Divide that by 2 years, that is £7.50 - 8.33 a month for 24 months.

From that your network will want maybe 25%, so best case scenario you are getting around £6 a month.

Your "advisor"/sales person will want £20-25k a year? To pay the advisor thefull £6 a month, they would need to be writing £275 a month in premiums? Obviously you will want a cut also, so you would be looking at maybe £400 a month plus per advisor.

My average premium is around £30 a month, so 13 life policies a month per advisor?
Thats all assuming you have fairly low outgoings.

 

[andy1978!]

Thanks for that Tony. I'm going to have to analyse the numbers from a different angle as I'm only used to dealing with them as a 'lead seller' which from what I've learnt on hear incurs a lot less costs. I know our leads currently convert at 30% for our buyers with a minimum commission value of £500 per policy. Thanks for all the info, I'll do the sums and make a decision!

 

[BTON Agency]

Think you have answers you need, cannot stress enough that the best way to take comm is on the drip, you will have a lot of policies lapsing and claw back in most cases is 4 years.

Another word of advice, the data you will have from these clients from doing a factfind will give you endless income revenues.

Mortgages, home insurance, utilities, wills, cic, income protection - If you or your sales team nail down a great fact find and a slick process you can earn incredibly well out of just one client.

Create a data base of clients and set up a drip feed sales campaign for products you have missed in selling to them. Mail chimp is good for that,

 

[mslightbowne]

Hi Andy,

I went through this process in July. It's a bit of a pain, but worth it in the end. You don't need any experience or qualifications, and the right network will help you out massively. Happy to make an introduction for you, or chat things through if it would help.

 

[andy1978!]

Thanks for all your advice. I've applied to join a network so that I can sell the policies in house and am awaiting a response. In the mean time one of the IFA's that I supply leads to has approached me to see if I'd be interested in supplying leads to him on a 'commission split' basis. He's happy with the lead quality/conversion rate but he see's this as an opportunity to grow his business quickly as he doesn't have the cash reserves to purchase a large no of daily leads.

I'm interested in this option but was wondering what the industry norm was for this type of arrangement. He's advised me that he has to factor in the 30% commission that he currently pays to his network.

Any advice is greatly appreciated.

 

[S Isaac]

Don't you already need to be FCA registered to advertise/generate life insurance leads?

 

[andy1978!]

No, its the responsibility of the lead buyer (who's registered with the FCA) to meet it's regulatory requirements. All our buyers carry out compliance, due dil & ICO checks on us but we aren't/don't need to be FCA registered.

 

[S Isaac]

Hi Andy, just wondering how you got on with this in the end?

 

[Clinton]

@BrianvsMaximvs , my feedback is that you shouldn't be spamming people by PM.

Go spend some money on a decent marketing expert! Or start a public thread.

 

[Pads79]

Hi all
I have a similar query and hoping to get some advice .
I’ve been a sales rep for a brokerage company selling life insurance for the past few years .
I’m looking to start up by myself ,
Can you please clarify if a cemap is an essential first step?
Or as seen discussed in the forum , would an R01 or CF1 be sufficient ?

Thank you for any advice
Much appreciated PJ

 

[Patcurbishley]

Just wondering how you have got on and if you can provide some advice?

 

[bmt Promotions]

If you are interested best to partner with someone, especially as you have that many leads! - You will be fighting people off.

 

[Thinking]

If you are interested best to partner with someone, especially as you have that many leads! - You will be fighting people off.

Hi looking for info. Currently have a da firm with a network selling life insurance interested in directly authaurised. Wonder if anyone knows what the providers require to be able to sell life insurance with them direct. Paid up front. Cheers