How to Retain Clients in a Hard Market

As we all know, we are currently dealing with inflation across the nation. The cost of fuel, groceries, vehicles and even insurance premiums have increased dramatically within recent months. As a result, most households are examining their costs and looking where they can save. What is the first expense these households are looking at? Insurance.

If you haven’t already, you can expect calls from your client’s seeking guidance and a way to control rising premiums. These calls are an opportunity.

These savings-driven conversations with clients might be the first time the client has reached out since they became a client of your agency (although it should not be the first contact you have had with them). Before suggesting lowering coverages or raising deductibles, be prepared to offer sensible options, including bundling and discounts as well as providing helpful insight into what is driving the rise in premiums.

Below are a few tips on how you can retain business as premiums (and everything else) rise.

Be educated: As soon as you can, provide producers and customer service staff with educational resources, training and talking points that address clients’ questions. Become educated on why premiums are on the rise and on the available bundling and discounts carriers offer.

Educate clients: Preparing clients in advance can help soften the blow of the unavoidable rise in premiums. Part of being an agent means keeping up with the trends and insurance news and relaying that information to clients. You should work to educate your clients by providing them with access to educational resources on your website and distribute those resources on social media.

Policy Reviews: When a client reaches out and is concerned about rising premiums, they want to understand how their policies might be affected and the costs involved. You should review coverage with your clients and look for discount opportunities. Be sure to include a realistic discussion about repair and replacement costs ahead of any potential policy changes. It is important to make sure your client understands their coverages and what would change.

The key to navigating rising premiums is rooted in support. While you cannot control the increasing premiums, you can control how you assist your clients through these changes. Being informed and empathetic can further establish trust with your clients.

Rachel Sherman
Marketing Executive
CoVerica Agency Alliance