No one truly loves insurance rate increases except for those in the business who are selling insurance. And, let’s face it, even insurance professionals sometimes don’t like to pay their insurance premiums.
Most often than not, there’s confusion around the rate conversation because there isn’t enough education happening with the client and with consumers in general for them to understand how insurance rates work. This is critical especially when it’s renewal time and there’s an insurance rate increase.
When someone calls your office and emotions are high because their premium is too high, they take it personally. That’s their job. Your job is to educate them.
They don’t realize that an algorithm from a machine analyzed the many different components of their account that then generated a number.
I love having this conversation with insurance agency owners because it’s important to know how to reduce your remarketing and still keep your retention high. The success of this activity hinges on the conversation when there’s an insurance rate increase.
There are two types of clients who struggle when it comes to the dreaded insurance rate increases.
- They don’t like paying for insurance. They have the money, but it’s always too expensive. They don’t put it into context as to why the price is what it is. They don’t recall the infractions on their driving record. They don’t recall the new vehicles that they added to their policy or that they have a newly licensed teenager is driving their brand-new Mercedes.
- Then, there are people who really struggle to pay their bills. They tell their story to us and to all the companies when they get their bill. The cable company, the phone company and their utilities provider. However, we typically are one of the few that they expect to be able to make the change, even if they are sipping on an $8 coffee.
If you struggle with managing these conversations, this is what our course is about. We train you how to approach the dreaded insurance rate increase. Don’t assume everybody is only concerned about rate.
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