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Insurance Rate Education: Using Knowledge As the Sword Against Price

insurance rate education

Posted on January 20, 2021 by Kelly Donahue Piro

As an insurance agent, we can get frustrated when clients are price sensitive, and may feel some anxiety or tension whenever an insurance rate increase happens. But that’s where you come in. When you start to view your role as that of a leader and a guide, you can provide your clients with an actual insurance rate education, and help them understand how insurance works. You may think that a client doesn’t want to spend the time to learn, but by offering them the option, you at least give them the chance to say no.

Our number one goal is every single time a client calls us, we need to improve their day and leave them better educated. That’s where it all starts.” (1:20)

Here are some ways you can use insurance knowledge as the sword against price, provide an insurance rate education, and start shifting the conversation away from price, and over to coverage.

  • Don’t use insurance speak

When you’re knee-deep in the insurance industry, it can be common to fall back on insurance jargon and agent terminology. But using insurance speak leads to confusion for the client, especially when they’ve been an insurance customer year after year. Using industry jargon will lead them to zone out of the conversation, and they may feel a little embarrassed that they haven’t had a certain coverage all this time. By shifting your language away from insurance speak, you’ll be much more successful at educating your customers.

  • Make sure a client actually understands

When you’re speaking with your customers, and you hear noises of confirmation from their end, you might think they’re following along. But the truth of the matter is that they may not actually be understanding as much of the conversation as you think. In order to make sure a client fully understands what you’re saying, open up a dialogue with them. You can ask something along the lines of “What do you know about comprehensive coverage?” to get them speaking, and to see where they actually stand.

  • Don’t only communicate electronically

Electronic communication is quick and easy, but emails and text messages shouldn’t be your go-to form of communication with clients. These are great for simple confirmations or other “quick hits,” but really, you’ll have much more power over the phone. Using our voices can be somewhat of a lost art, but if you pick up the phone and call your client, you’re much more likely to find success.

  • Show your value

When we experience an insurance rate increase, our first instinct may be to try to problem-solve as quickly as possible, to placate the customer. But slowing down and having a conversation around insurance rate increases can not only help educate your customer, but show your value. Your role is not just to talk about price, but it’s also to be your client’s tour guide, by educating them with your wealth of knowledge. This can happen during big moments, but it can also happen during little moments, such as when a client is making a payment. In fact, those opportunities for education may be even more valuable during little moments, because during the big moments, it may be too late.

As insurance agents, our number one goal is to make sure that every time a client calls, we improve their day, and leave them better educated. If we break out of “transaction mode,” and stop simply processing their payments, we can leave clients more informed, and prepared to make the decisions that are best for them.

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