Effective Techniques for Remarketing Insurance Successfully

Remarketing Insurance… rates in the insurance industry vary greatly depending on your market area and the carriers in your state. You probably know how well your agency handles remarkets. Or do you? Do you keep track? Remarketing accounts can be very time-consuming. If you aren’t keeping track, you should be. Determining success rates can help your agency with standards and identify which accounts your staff should or shouldn’t remarket. 

Though Remarketing Insurance is a valuable strategy, it can also be challenging and feel like a revolving door. 10 or 15 years ago, it was unheard of, then it became common practice for every agent. However, when the market became difficult, remarketing became the go-to solution instead of reviewing the accuracy of the current account. Once we conduct renewal review calls and verify accuracy, THEN and ONLY then it may be time to remarket. Make sure you are doing renewals the right way too. 

Here is APP’s Renewal Process Pack.

Below we will discuss Remarketing Insurance in a positive way. HOW DO WE REMARKET THE RIGHT WAY?

What Is Remarketing Insurance? 

Remarketing in the insurance industry refers to the process of evaluating and potentially re-issuing an insurance policy to ensure the client is receiving the best coverage at the most competitive price.

We have a great Remarketing Process Pack Resource, get it here.

Key Elements of Remarketing in Insurance

 Policy Review

• Independent Agents/Brokers review the existing policy terms, conditions, and premiums.
• Analysis involves identifying changes in the business or personal circumstances that might affect insurance needs.

 Market Research

• Comparing rates and coverage options from multiple carriers to identify better deals.
• Brokers/Independent Agents often leverage their relationships with various insurers to source competitive quotes.

Proposal Generation

• Preparing new insurance proposals based on the gathered information. Using Carrier or Agency specific proposals.
• Outlining the benefits of switching to new insurance plans versus retaining the existing one.

Client Communication

• Presenting the new options to the client with detailed explanations.
• Discussing the pros and cons of each option along with cost-benefit analysis.

 Decision Making

• Clients make an informed decision on whether to stay with their current insurer or switch to a new one.
• This decision is often influenced by factors such as cost savings, enhanced coverage, and service levels.

Benefits of Remarketing

• Cost-Effectiveness: Ensures that clients are not overpaying for their insurance.
• Enhanced Coverage: Provides an opportunity to adjust coverage to better match current needs.
• Competition Leverage: Encourages insurance companies to offer better rates and terms to retain clients.
• Customer Satisfaction: Regular reviews can lead to higher satisfaction as clients feel their needs are being proactively managed.

Challenges of Remarketing

• Time-Consuming: Gathering quotes and comparing them can be labor-intensive.
• Disruption: Switching insurers can sometimes lead to gaps in coverage or administrative hassles.
• Relationships: Clients may have built relationships with previous insurers or brokers which can be disrupted.

Remarketing is essential to keep insurance relevant, cost-effective, and comprehensive, adapting to the changing risks and needs of the insured party. HOWEVER, it needs to be done at the right time, not immediately when customers complain or question a policy.

How To Qualify Customers to Remarket Insurance

Make sure your agency has remarketing standards. Not only should you have agency standards but you should also have remarketing standards. This means you need to be clear about what you will allow to be remarketed and what you won’t. 

We have a remarketing standards section on our renewal review sheet. There is also a full-blown remarketing sheet to follow and align with your agency. If you have a school seat in our agency school you can find it in our How To Reduce Remarketing Course in our Agency School. 

Some Remarketing Guideline Questions To Consider Are: 

• What kind of pets do they have?
• What kind of property is it? (2nd home, log cabin, etc.)
• What do they do in the home? (business?)
• Age of roof
• Driving history and more

Talking Points for Remarketing Insurance:

• Open claims
• Minimum premium
• Monoline
• Don’t want to keep the client (Client Tiering)

Find a full list in our How To Reduce Remarket Course.

You Must Always Consider Remarketing Dangers

WARNING – REMARKETING INSURANCE DANGERS

• Be careful with remarketing and rewrites when paying associates. If the business already belonged to the agency, don’t pay a new business commission rate on a remarket. This happens a lot, and it is not a new client and should not be paid like one. This business belonged to the agency and was just moved.
• If you are Remarketing Insurance due to price, ALWAYS double-check coverages. Remarketing can increase E&O claims because agents often miss coverages the previous policy had. If you and your agency are remarketing, make sure everyone pays attention to the fine details!
• Always be aware of different carriers and remarketing dangers: 
  • Inspections
  • Mortgage, escrow, payment issues
  • Losses/claims that may not be disclosed
  • Undisclosed drivers

App Remarketing Process Pack – GET IT NOW!

So, Remarketing Insurance has its place. It is a retention strategy. During a hard market, you want to REVIEW-REVIEW-REVIEW, but there comes a time when just reviewing isn’t enough, and the account needs to move to another carrier for the benefit of both the customer and the agency. Sometimes, remarketing helps retain a loyal customer. Don’t make it an every 6 months or every year thing. Don’t use the words “remarket” or “rewrite” with a customer. 

Use the tips above to build rapport, round out accounts, upsell, and improve every aspect of your insured’s insurance. When the day comes for them to file a claim, they will thank you. 

So, have a process for your staff on how and when they can remarket. Make sure they know the carriers you want them remarketing to. With a plan and a process, it will be easy, and staff will know exactly what steps to take in the best interest of the agency and the customers.

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