Imagine your favorite streaming service’s rates go up—and you only find out when the bill comes. How might you react? Now imagine your reaction if they had reached out before raising rates, taking the time to explain the reason for the price increase. Maybe they shared what they’re doing to improve your experience. Would you stay with your favorite streaming service?
Insurance can work much the same way, with fluctuating rates and customers looking to switch carriers. It’s natural to focus on remarketing (rewriting a policy by moving a client from one carrier to another to get a better rate), but this is a tough environment to save people money. Many insurance carriers experienced challenges throughout 2022, so most are starting 2023 with a priority on profitability. Inflationary pressures on rates, supply chain issues, natural disasters, and increasing cost of claims have all contributed to this hard market. But since everybody’s taking rates, it doesn’t make sense to move from carrier to carrier. Here’s how to retain (and grow) your customers without heavy reliance on remarketing.
Step 1: Prepare your team
Retention starts with your internal team. Arm your staff with talk tracks and solutions – ensure they know your agency’s value proposition and can state it clearly. Even though increased rates are here to stay, your agency offers more value than just uncovering better prices. Make sure your team knows to be transparent with clients about the economic climate and is aligned with your retention strategy. Always remember who you want to partner with for the long term.
Step 2: Be proactive with existing clients
Once you share what’s driving premium increases, you can help clients find ways to save. Review their coverage to ensure it’s appropriate for their needs and make any adjustments to reduce costs. Some consumers are even opting for higher deductibles, which can help reduce premium costs. Perhaps they are eligible for discounts they haven’t applied for yet or can receive reduced rates for going paperless, bundling coverage or enrolling in specialty programs, like usage-based technology offered by many top carriers. Being proactive is the key to retention.
Step 3: Lean on your network
FirstChoice, a MarshBerry company, can help you prepare for these conversations and feel confident in your approach. Solutions include growth resources, messaging guides, and relationship building tools with dedicated regional leaders that can help you and your agency staff create and execute your strategic plan.
By proactively retaining your current clients instead of remarketing, you’ll have a better chance at growth because your agency staff is free to work on new business. Proactively partnering with your clients helps you stand out from the crowd. They’ll remember your guidance—and your candor. Maya Angelou said it best, “people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” Help them feel trust in your agency by showing your value during challenging times.
If you have questions about Today’s ViewPoint, or would like to discuss your retention strategy, please email or call Keith Captain, President, FirstChoice, at 704.831.8708.
MarshBerry 360 Forum – Registration Now Open!
NYC 5/9 | CHI 5/11 | LV 5/18
Chart your path for success in 2023 by understanding the full view of insurance industry M&A market trends and organic growth best practices. At MarshBerry’s 360 Forum, you’ll join other insurance agency and brokerage executives, along with MarshBerry advisors, to understand the various strategies to help lead your firm to growth and profitability, as well as how to maximize shareholder value.
View the full agenda and register now at www.MarshBerry.com/360.