Agency Performance Partners


Posted on March 17, 2023 by Kelly Donahue Piro

Insurance Price Increases: How to Communicate to Clients

We are here at a hardening market. The highs are high (more revenue!) the lows are low (explaining the cause in a difficult economy of the rate increase). However, any market change is an opportunity. 

The agencies who capitalize on this marketplace will see it as just an opportunity. Now, you may think I’m crazy (and I probably am), but I love a hardening market. 

The agencies I have worked with that have been making renewal calls will get more questions – am I properly insured? And less – you people keep raising my rates. They are ready to take on the additional inbound quotes while managing the current book. 

Bottom line – these clients will get referrals from their existing customers because they have been doing the right thing and have built relationships with their clients. Many insurance agents would have loved to start proactive renewal reviews three years ago. 

However, since we do not have an insurance crystal ball, there is no time like the present! Now is their time to reap the benefits of their hard work. 

The agencies that have not been putting in the proper work will suffer. 

  • Lower retention
  • Lost customers
  • Too much reshopping
  • Sloppy work and E&O Issues
  • Burned-out team 

Doing the hard things always pays off. As some of you read this blog, you will be stricken with FEAR, UNCERTAINTY & DOUBT. 

Remember that you are reading this blog because you want guidance on communicating insurance price increases. Your instinct may be to do nothing because choosing to do something will be challenging, and uncertain and may cause more hardship. 

Doing nothing means you let the rate increase control you! Don’t let this insurance price increase ruin your opportunity. 

Why Your Agency Needs To Communicate Insurance Price Increases, Proactively

Let’s imagine this. You are a teacher and married to a nurse. Times are tight, and raising kids is expensive. 

The Christmas credit card bill comes in, the increased heat bill appears, and one kid needs braces. The world can seem helpless. Then your insurance renewal comes in 15% higher!!! 

Your client thinks

  • I had no tickets or accidents
  • How are we going to pay for this
  • Why is this happening to me???

Now billions of dollars of marketing have been hitting your clients. They think, let’s shop for our insurance. 

They get sucked into an online portal, pick their coverages, and like magic, that rate comes back way less than what the couple is paying today. 

Ohhh, and they can bind right there and then. 

But they don’t call your office. The first thing on Monday is spicy. You offer to shop their policy, but then this happens:

  • There is a backlog of reshops, so it goes in the pile, and it takes four days to get back to them.
  • The online quote they received they are calling and enticing them to come over.
  • You ask for a copy of the quote because clearly, they must be incompetent to quote their insurance (see the 3 Minute video on why this can be insulting!)
  • You call them and let them know the great news you can save them $300 – but they think how long I have been overpaying? Why did I have to ask?

You have to embrace the idea that proactive is ALWAYS better than reactive. Now, getting a proactive strategy can be difficult, but this blog will help you get your start!

Also, your job is easier when there are no competing quotes. 

One more note, when your client gets a quote from a competitor – they don’t give up. 

They target them year after year. Your client is vulnerable. You saved it this year, but you have to work hard for the next several years to keep the competition at bay. 


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