When independent agent Robert Slayton heard about the passage of the 2009 American Recovery and Reinvestment Act, he didn't panic. He didn't panic when clients started calling his office to cancel their policies in favor of extended COBRA benefits. And he didn't panic later on, when Congress extended the COBRA payments again. Instead, he stayed calm, kept networking and getting referrals, and waited for his phone to ring. And ring it did.
Slayton is an example of how, even in an uncertain legislative climate, agents don't necessarily need to worry about the government getting in their way. As long as they continue to do their job, they can see growth. We asked Slayton to tell us about his career and how he's survived the recent legislative changes – and what his plans are for the future.
Q: Tell us about yourself. How long have you been in the business? How did you end up working in insurance?
RS: I've been in business about seven years. I had done well in the technology industry, and then the tech boom turned into a tech bust and I outsourced my job to India. From there, I did a 40-year plan about where I wanted to end up and what kind of business I wanted to start (I had started six previous businesses). I wanted a business where I got paid if I didn't work. I was also looking for a business where, if my children wanted to join, they could. Otherwise, it needed to have a book value so I could sell it. At that time, I was converting my COBRA to a family policy and saving $500/month. I was chatting with the insurance agent about what she did, and that's how I got started.
Q: What is your favorite thing about working in the insurance industry?
RS: My clients. I love my clients, and they love me. Everyone always has a story, and I meet some very interesting people – like someone who makes spear fishing guns, and an animal communicator).
Q: Your business was severely affected by the economic stimulus package of 2009. Can you tell us a little about that, and how you came through the other side?
RS: The day after the stimulus package was signed into law, my phone literally stopped ringing for two months. The calls started again when many people realized that they didn't qualify for the stimulus payments. Then, at the end of the first stimulus payments (around September), my phone rang off the hook. Everyone wanted to move onto an individual plan to save money. But at the end of December, when Congress extended the stimulus payments for existing qualified beneficiaries, I had at least four people call to cancel their policies to stay on COBRA stimulus. It's a challenge when the federal government gets into the middle of your business. The amusing part (you either laugh or cry) is that they will be in everyone's business soon enough. Then there's that new HIPAA law that was in the original American Recovery and Reinvestment Act. It just adds extra time and administration (read: cost) to comply. Most good agents comply with 90 percent of the law; they typically miss the appointment of a security officer.
Q: What do you think of the health care reform package? Would it benefit your individual clients or hurt them?
I'm excited about guaranteed issue and no pre-existing condition exclusions (or just a 30-day look back). About 30 percent of all referrals are people who are either uninsurable or have an exclusion rider placed on them that's so onerous that they either stay on COBRA or go into the uninsured pool. I would be able to help those people who really want health insurance to find the best plan for their needs. That's definitely a benefit.
The drawback is that ALL policies will cost more money. Insurance companies have already started raising rates on everyone in anticipation of the change. The only people who will see a decrease will be lower-income individuals and families who qualify for a subsidy. The rest of us will see more expensive policies, either by premium or through higher taxes to pay for a subsidy to ourselves.
Q: Prospecting for new clients is a major problem for many of our readers. How do you prospect?
RS: I'm a networker. I identify networking groups that can refer people to me and go consistently. I speak on health care reform at these groups along with speaking at our local employment training center about alternatives to COBRA. I'm an expert on several list servs. Whenever a person asks an insurance-related question, I answer it fully (none of the "call me to discuss" crap). People appreciate full and complete answers and, over the years, people on these boards trust me, so whenever they need insurance they contact me. From there, I really love my clients and do my best for them. They understand and appreciate this and send a continuous stream of referrals my way. Even those I couldn't help refer me out because they know that I can be trusted and give honest answers to their questions.
Overall, I take an inside-out approach to my insurance business. When I work, I take care of my clients, and put it out into the universe that I need more clients. The universe always responds.
In the past, I've tried all the other methods: cold-calling, buying leads, hiring a telemarketing person, etc. The above methods are what I've found that really work. Sure, I use Twitter, Facebook, and do LinkedIn. I occasionally get leads from there, but it is not enough to invest more time in.
Robert Slayton is the founder of Robert Slayton Associates, an independent insurance practice in Naperville, IL. He can be reached at 800-913-2378 or robert@robertslayton.com.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.