Insurance Late Payment Calls
Today’s topic can be one that stirs up controversy in our industry: do you make insurance late payment calls? When a client doesn’t pay, every agency has their own strong feelings on whether or not you should call them. We wanted to share our perspective.
I see late payment calls as an opportunity, with the right process, with the right strategy.
Here’s what we think about insurance late payment calls:
1. Not every late payment call is the same
We think that agencies make a big mistake when they lump all insurance late payment calls into the same bucket, because they’re not all equal. We think these calls can be hugely helpful in some cases, because sometimes things simply slip through the cracks. Maybe someone moved and their mail was lost, for example. Giving a client an insurance late payment call shows that you have their back. What you don’t want to do is be babysitting clients.
2. Know how to distinguish between courtesy and babysitting
If a client needs more than 2 insurance late payment calls a year, you need to bring it to the management’s attention, because at that point, it’s more than just a courtesy. Then, you can take a look at the account, and see if they’re a good fit for your agency. Chronic late payments should be treated as a red flag.
3. They can present opportunity
When approached with the right strategy, we think insurance late payment calls can present an opportunity. The client simply might need help with their payment strategy, and these calls will give you the chance to have their back. On the other hand, these calls can also give you the opportunity to move people away from your agency who aren’t a good fit.
4. It should be a centralized responsibility
Instead of everyone in your agency being responsible for making these calls, we think that insurance late payment calls should be a centralized responsibility. Give this task to one or two people, and let them focus on this job. That way, there will be an organized system, and every client will be treated the same way.
We think that as agencies, we provide services for our clients, and making courtesy calls to let them know about an occasional missed payment should be acceptable. Being tactical in our approach to insurance late payment calls can help ensure that we’re not babysitting, and that every client is treated the same.
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