Retaining clients in the face of rising insurance rates can be challenging, but there are several strategies you can use to maintain strong relationships. Here are 10 ideas for retaining clients when their insurance premiums increase.
1. Communicate, communicate, communicate: When rates increase, provide a comprehensive breakdown of why this is happening. Explain factors such as climate change, cost of building materials, threat of wildfires, changes in regulations, as has happened in Florida, and broader economic trends. Transparency helps your clients understand that the increase is not arbitrary but based on real factors. Take time to inform clients about rate changes ahead of time rather than waiting for them to see the increase in their bills. This proactive approach demonstrates consideration and helps manage their expectations.
2. Provide regular reviews: Are you regularly reviewing your clients’ policies? Assessing their current coverage and discussing any life changes with them can identify gaps in coverage or opportunities to streamline and reduce costs. This tailored approach shows your clients their coverage is optimized for their current situation.
3. Offer tailored solutions: After understanding a client’s needs, recommend specific adjustments to their policy that could lower premiums. For instance, suggest increasing deductibles or removing unnecessary coverage. Help clients identify and take advantage of discounts they may not be aware of, such as multi-policy discounts, safe driver discounts, or discounts for installing security systems.
4. Deliver value-added services: Supply your clients with resources on risk management, such as articles, webinars, or workshops. This can help them take proactive steps to reduce their risk and potentially lower their premiums. Offer personalized assistance with the claims process. Being a supportive guide during a claim can greatly enhance client satisfaction and loyalty.
5. Educate your clients: Share actionable tips for reducing risks, such as maintaining a good credit score, installing home safety features, or improving driving habits. This helps clients potentially lower their premiums and positions you as a knowledgeable advisor. Take time to educate clients about insurance terms and options. Understanding their policies can make clients feel more confident and in control, even if rates increase.
6. Get personal: Go beyond generic interactions. Remember important milestones, such as policy anniversaries or significant life events, and acknowledge them with personalized messages or small tokens of appreciation. Develop a personal rapport with clients by being genuinely interested in their lives and needs. This personal connection can foster loyalty, making clients more likely to stay with your agency if rates increase.
7. Give excellent service: Ensure you’re readily available to answer questions and address concerns. Quick response times and effective problem-solving can significantly impact client satisfaction. Anticipate client needs and offer help before they have to ask. For example, proactively suggest updates if you notice a client’s coverage is outdated or potentially insufficient.
8. Highlight policy benefits: Regularly remind clients of their policies’ unique benefits and features. Whether it’s superior customer service, comprehensive coverage, or extra perks, knowing these advantages can reinforce their decision to stay with you. Share testimonials or case studies where your agency has gone above and beyond for clients. This can demonstrate the value and quality of your service.
9. Be proactive: Stay informed about industry trends and potential changes affecting clients’ policies. Being ahead of the curve allows you to prepare clients for upcoming changes and discuss their options early. If you foresee a potential issue, such as an impending rate increase or a change in coverage options, address it with clients before it becomes a problem. Early intervention can prevent surprises and build trust.
10. Offer ways to pay: When premiums rise, clients must face the hard truth of figuring out how they will make the payments. Our upcoming Premium Purchase Loan can help clients make their insurance premiums without risking a lapse in critical coverage. Your clients can borrow up to $40,000 with a 9-month term, and it has a competitive rate of 17.50% APR*, regardless of the client’s FICO® Score, which could be significantly lower than their current credit card rates. Check this site or call us in early November for details.
Final thoughts.
No one wants to experience an increase in insurance premiums. And for many of your clients, a high premium notice may have them shopping for new coverage. Implementing these 10 ideas for retaining clients when insurance premiums increase can help you maintain client loyalty when rates rise by providing value, demonstrating care, and offering personalized service.
*APR = Annual Percentage Rate. APR is the annual rate of interest that is paid on an investment, without taking into account the compounding interest within that year. Rates are subject to change at any time.
