4 Ways We Focus on Price Not Value: Automatic Requote
Insurance Agents Panic, But They SHOULD Do This
Here at APP, we believe there is a way to handle these conversations and it’s not with panic, not at all. We have a whole blog post on this that you can check out here, but we’ll cover gist of it.
You do everything but reshop.
Yes, it’s that simple. You start by being compassionate to their situation while not promising to reshop, then reviewing their entire account, going through every discount possible (even ones that you don’t like), and finally laying out all the risks that lay within remarketing. Like that little thing about companies sending out home inspectors before allowing homeowners to stay on an account?
Yeah, ouch.
This guide often send people off that path and gains you their trust because, their trusty independent agent helped them figure out a path that best suis their needs. Who doesn’t want that?
Agents Only Make It About Price
Anyway, let’s get back to the point. When that call comes in, people panic, and agents practically sprint to that reshop. When that happens, value goes out the window.
The entire focus of this conversation becomes the cost. There is no discussion of coverage. There are no steps taken to alleviate misunderstandings about how we got here or why the rate went up.
We don’t like that one bit.
Yesterday, we mentioned that the value of an independent insurance agent lies in the conversations they have with the client. Sure, here at APP we like our digital systems and our ways of doing things that are so modern they don’t include paper. That is true.
But that “old” way of doing business is not lost on us. We may not be looking to bring people in and talk about the family for an hour before talking about their policies, but we are looking to bring some humanity back.
You have to educate, guide, and work to build a relationship that can last. By jumping to the reshop, you aren’t even seeing if you can help them without putting them through that ringer.
What Independent Agents Need To Look At
Everything. In these moments, you need to flex your knowledge. You need to review their account with a fine toothed comb and see if you can find anything.
A big thing independent agents miss here is talking about life changes. We never know where someone is in their life or what they are really going through/headed for until we ask. Communication opens up so many doors and in this setting it has the potential to help their situation.
Did a kid move out that they need taken off the driver list? Did they finally replace that roof?
The Difficult Conversation
Ultimately, you have to get over having the difficult conversation with your customers. When they call in and are really revved up over their rate changing, you need to have the tools to meet them and help them without making it worse for everyone.
Maybe, after you ask a few questions, you find that reshopping their homeowners insurance coverage would not be a good move for them because their roof is old.
That is what you are here for. You know the terrain and you guide them through it. Another huge aspect to an independent insurance agents value is the education you provide.
Because, don’t forget, insurance is confusing as heck and people don’t think about it but once or twice a year. Hold their hand and get them through this, but be honest and show them that remarketing is not the best course of action.
It rarely is.
So, the next time an angry customer cals in, put your big independent insurance agent pants on and walk them through it. Because if you don’t, you will become one of those agents only focused on price.
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