It’s no secret that it’s easier and more cost-effective to retain a client than to court new clients like you’re trying to find a date for the prom. So, ensure you’re there for your clients, and they’ll stick around. No breakup conversations needed.
Make yourself the “go-to” agent in your field. Educate yourself, then educate your clients. It’s not the only part of relationship-building; it’s being able to have tough conversations and let them know you’re still there to support them.
Clients maintain business relationships with people they know and trust, especially in the insurance game. If you’re lucky enough, you’re insuring them for home, auto, life, and more. If you’re doing your job, you should also be insuring a few of their family members and friends.
Before your clients get sticker shock from their new renewal rates, give them a heads-up. A personal touch will help ease the blow. Without diving too deep, briefly explain why their rates are increasing, and discuss how you can help them navigate the changes.
If their policy now has less coverage, take a moment to explain what that could mean for them down the road. Listen to their concerns. You might not solve everything on the spot, but let them know you’re actively searching for ways to meet their budget and coverage needs.
Set the right expectations by reminding them that the lowest price doesn’t always translate to the best solution. With tighter underwriting, finding a cheaper option may not be as easy—or ideal—as it sounds. If they face too many barriers, that’s another conversation.
Finally, offer a policy review. It’s a chance to discuss any necessary changes, upgrades, or adjustments that could positively impact their coverage rather than just focusing on the negatives.
To your clients with whom you have established a relationship, you can say, “I’m always here to answer questions and explore options to make this more manageable. At the end of the day, we know that insurance isn’t really optional, but it is essential. I’m sure you want to feel protected and have peace of mind in your coverage.”
End your conversations with positivity and remind them that they are not alone. You might say, “I understand insurance isn’t easy to navigate, but I’m always here to help you make decisions that fit your circumstances.”
Email Subject Line: Potential Changes Regarding Your Policy Renewal
Body: Hello, Client’s Name,
I would like to discuss your policy as we are quickly approaching renewal. We are currently in a “hard market,” which means premiums are rising across the industry. This may happen due to increases in claims, market changes, or other factors.
Unfortunately, it’s impacting almost everyone, including me. I prefer to inform my clients early so we can get ahead of these potential changes. I value your business and want to keep you comfortable with your policies.
I can research options that may help maintain or reduce your premiums. Please let me know when you are ready to explore the available discounts for which you may be eligible. I’m also happy to review your coverage to ensure it aligns with your current needs and isn’t over-insuring in any areas.
We understand the importance of maintaining continuous coverage, especially during challenging times like these. Let’s work together to ensure your policies meet your specific needs. I am available at your convenience to schedule a meeting in person or discuss any questions you may have.
I look forward to hearing from you. Reach out anytime!
Sincerely,
Your Name
To educate your client, explain the hard market clearly in layman’s terms. You might say, “What we have right now is what they call a hard market. It happens when the overall cost of insurance goes up. It’s typically due to factors like an increase in natural disasters, higher claim costs, or the market’s volatility. Insurance companies become more cautious about taking on risk, so they raise premiums and sometimes reduce the amount of coverage offered.”
In #6 above, to focus on value and show that coverage truly meets their needs, consider this scenario:
An ACA client has been paying a nominal premium to insure her entire family. Now, due to a very slight increase, she is considering cancelling her insurance because her bills are that tight. As an agent, it’s in her best interest to discuss how much it costs each month and for the year.
In #9 above, when you know your carriers, the products they offer, and your clients, you’ll know how to approach your client who is shopping to save money, like in this scenario.
A Medicare Advantage (MA) client pays a reasonable premium but is shopping for a lower price.
In #2 above, your client slams XYZ Carrier. Rather than engage in a conversation about it, reply like this.
“My clients are all unique, and I do have some who prefer XYZ Carrier. However, I’ll make a note of your preference and will only quote from other carriers. I aim to help you find the one that fits your needs.”
In a hard market your clients are likely to be cautious and skeptical. They’ve heard or experienced the insurance denial process. Demonstrate your value by educating them and checking in regularly. They are your future business, so don’t give your clients a reason to leave.
Navigating the hard market is easier when you have a wide range of major carriers and products. Visit us online!