Stop Fearing Insurance Rates: Are You Thinking With Your Back Pocket?
Insurance rates can be a funny thing for agencies, because even if you might not realize it, many people in agencies actually fear insurance rates. We think too much about price, we make a lot of assumptions, and we have a lot of anxiety around price. What ends up happening? We transfer those emotions onto our clients.
“We think too much about price, we make a lot of assumptions, we have a lot of anxiety around price. And what ends up happening, through no fault of our own, we end up transferring those emotions onto clients”
We all need to stop fearing insurance rates, because rate is only a problem in the absence of value. Here’s why else we need to stop fearing insurance rates:
1. We think with our own back pocket
When we’re anxious about rate, we tend to think with our own back pocket, not the customer’s. We think “If I had that price I’d be very upset,” or “I would struggle to pay that rate increase,” instead of staying price neutral, which should be our goal.
2. We need to remember our role
We like to say that when it comes to rate, it’s important to remember that we didn’t cause it, we didn’t create it, we are simply the tour guide. If your client got into a DUI and there’s a rate increase, you didn’t cause that. If the carrier has a rate increase, you didn’t cause that either. If you remember that your role is to simply show your clients their options, you’ll feel much more at ease with rate.
3. A few rotten apples spoil the bunch
If you’re anxious about rate, you probably remember the nasty, grumpy clients that take up all of your time. But keep in mind the many many customers who get a rate increase, who you never hear from, because they understand the value of what they’re getting.
If you keep your emotions out of rate, and you get good at having conversations about price and rate, you’ll be able to stop fearing insurance rates. Simply remember your role as the tour guide, and show your customers what their options are.
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