Hello everyone! I hope you all have had super productive weeks! APP has been touring non-stop, making stops in Iowa, Connecticut and this week we are in Ohio! The fun never stops!! However, this blog is going to discuss something that I have been hearing a lot in my travels and sadly it’s not as much fun as it could be! I am talking about the dreaded Rate Increase! The bane of any insurance agency’s existence! I get asked all the time as to how to best service these calls because remember no matter what, a phone call is an opportunity!
When a customer calls in about a rate increase it’s our natural action to go on the defensive. We need to change that. The customer is upset and they’re calling out for help! With that being said the first rule is to identify their concern. The Rate Increase could mean different scenarios for different customers and we need to find out what that is. It could be that they are on a fixed income, they had a life change that dictates their budget or they could just be upset that they have to pay more money. We need to find out what that scenario is for each individual customer.
When you have found their concern it’s now time to empathize. Explain to them first what the most likely cause for the rate increase would be. This should be easy for my New England friends given the winter we had last year! Let them know that they are not the only ones who have had this happen to them, including yourself! Take the extra measure as well to explain that your agency routinely reviews their account and if the rate increase is above average that you would proactively reach out to them to review coverage options. Lastly, thank them for calling in, as well as for being a customer and that you are going to get this information to their agent who will be calling them back in a timely manner. You can also drop in that you do work with the top carriers in the state and you will find them the right coverage at the right price.
Now it’s time to review that account! You will want to identify if they are what we would call an “at risk client”. What this means is that you are missing email, cell number, they are monolined, have multiple agents or they filed a claim. If yes, then you will need to work towards resolving this. Especially if they had a claim. Explain to them how filing a claim or if their insurance scores dropped it would most likely dictate that the rate increases. With that being said, you will now walk the client through how you are going resolve this.
If they did not have a claim then you will want to find out about any new life changes which would include but are not limited to: loss of job, divorce or kids in college. If they had significant life changes then it will be prudent to look at reworking the policy with the included life change information. If the answer is still no, put on your sales hat! Explain to them that although the rate increased they are still with the absolute best carrier available. Empathize again that your rate went up as well but you are going to stay because on average our state’s rates have increased by X% We understand that these calls are not always fun which is why Agency Performance Partners exists. Our comprehensive partnership helps eliminate the guesswork with these scenarios. Give us a call or visit beta.scxserv.com/agencyperformancepartners.com to learn how we can help!
