Vacation Sales – A Great Option For Insurance Agents
So the economy has been slowing down recently, and currencies have been reducing in value. Despite that, the travel industry is still booming. As currencies fall in value, travel to foreign countries suddenly looks cheaper as tourists look for places where their money goes furthest. Insurance agents can cash in on this with vacation sales.
More traditional avenues of the insurance business might seem more profitable – selling insurance for cars, or homes, or other propositions like these. It might seem strange, but insurance for vacations can actually be more profitable. With car insurance the main profit goes to the insurance company, not the agent. Agents are working hard to make sales, but there’s only so much profit left once the insurance company has taken its share.
Insurance for homes is the same. We’re seeing more and more natural events causing huge amounts of damage – tornadoes tearing up the mid western states, hurricanes lashing the coasts. More and more it is becoming difficult to make money with home insurance. How many people have you heard of living on the gulf coast who simply can’t get flood insurance? Exactly – and the reason is that it simply costs the insurance companies too much in the end. For an insurance agent looking to make more money, vacation sales is a great choice.
Currently, we are approaching times where the travel industry is seeing an increase in profit. In fact, this industry has seen greater revenue increase than most other industries year over year. This is because of one main factor. The retiring baby boomer generation is spending their retirement money.
A lot of this generation has money, and plenty of it. They’ve worked hard for many years, and now they are reaping the rewards in their retirement. They’ve dreamed of travelling the world for many years, and now they have the time and the money to do it. They want to reward themselves, and indulge their desire for travel to far flung and exotic places.
These sorts of people are often cautious, though – they want to feel protected. This is a powerful reason why vacation sales is a great option for insurance agents. When people take a trip, they want to be sure that they are protected from it being cancelled suddenly – most trips don’t refund in these circumstances, so there’s a high risk of losing the money they’ve paid out for a trip. If the traveller has bought an insurance policy for their trip then if it is cancelled they can get all their money back no matter what the reason for the cancellation. These reasons can be any number of things, from poor health to hurricanes, or almost anything else that stops you going on the trip.
This is a powerful reason why vacation sales is a fantastic opportunity for an insurance agent. Insurance can be sold on any trip, anywhere in the world. It is up to the traveler to buy insurance and most of them know that it is a pretty good option, and affordable when viewed against the risk of cancellation. As more and more people reach retirement and more people travel for pleasure there will be even more demand for this sort of insurance. Travelers want the assurance that their money is returned if something happens that mean they have to cancel their trip. The reality of the situation is that not many vacations have to be cancelled, though.
As a last word, there’s another big advantage for the insurance agent with this sort of business, and that is the opportunity for affiliate sales. If an insurance agent teams up with a travel company – or a number of travel companies – such as MOR Vacations, they can become the referral contact for these travel companies when their clients want to purchase insurance. No more hunting for leads, and trying to close sales – the business comes straight to their doors, recommended by travel companies. And even better, the travel companies also make money from the sale, and everyone – the insurance agent, the travel company, and the traveler – wins!
Filed under: MLM