19 November 2009

Agents missing out by not selling insurance

A "surprising number" of travel agents are still completely unaware that new rules allow them to sell standalone travel insurance policies, according to an insurer.

Rock Insurance said agents were missing out on potential commissions by not making the most of Financial Services Authority regulations in January which allowed regulated agents to be authorised to sell standalone travel policies.

Sales director John Buckingham said: "I have been speaking with agents at World Travel Market, the Travel Convention and various travel conferences throughout the year and am amazed at the number of agents who are unaware that they can sell travel insurance independently of a holiday.

"Since the FSA regulations were introduced in January, agents have been given a level playing field on which to compete with the likes of the Post Office and supermarkets offering travel insurance policies.

"Agents should be using this opportunity to generate commissions and boost their profit margins."

The company has compiled top tips for agents selling insurance:

· Identify clients booking specialist holidays ie skiing, wedding, golf, and tailor their policy to reflect their chosen activity.

· Ask your clients when their annual travel insurance policies expire and target them just before their renewal date to encourage them to book with you. When you book a policy set up a reminder a month before it expires to contact your client to discuss renewal.

· Launch a travel insurance campaign offering discounts to your customers if they take out their policy before a set date - a great way to generate business in a quiet month. Provide price and cover comparisons with other travel insurance providers such as the Post Office and local supermarkets.

· Always try to up-sell to an annual if you have a client looking to book a single trip. They represent much better value for money for your customer in the long run and generate you a greater commission.

by Phil Davies