“Making Clients Stick”

What you can do to retain clients & Profits in today’s turbulent insurance market

Amy Bryanwww.bryanagency.com

Amy is the third generation of insurance professionals and started in the industry in 1995. In 2004, she opened Bryan Insurance Agency. She also is the immediate Past President of the NYYIPs and sits on the Executive Committee for PIA as Secretary.

Meet Our Speakers:

Ryan Hanleywww.ryanhanley.com

Ryan Hanley is a producer for The Murray Group Insurance Services in Albany, NY. In addition Ryan speaks to Insurance and Small Business organizations throughout North America about successful Online marketing strategies. Ryan is a frequent contributor PropertyCausalty360.com and has been featured in IA Magazine, Insurance Journal and Fox Small Business News. Ryan is also the author a book titled: Social Tools – The 10 Social Tools Essential to Business Blogging Success.”

Statistics for Personal Lines P & C Market on a National LevelAs reported from Propertycasualty360.com on March 13, 2012

• Homeowners insurance rates under $1 million in value for replacement costs rose 2%• Homeowners insurance rates over $1 million in value for replacement costs rose 1%.• Automobile insurance rates rose 2%• Personal articles insurance (jewelry, paintings and other valuables) increased 1%

Where is the market heading?

Statistics for Commercial Lines MarketAs reported from BusinessInsurance.com on March 23, 2012

• Q1: 2012 Results according to Marsh Rates Increased overall

• US Market with CAT Exposures 10%-20% & Non-CAT US Market saw 10% increases

• Countries on the Global Market especially those hit hardest by natural disaster in 2011 saw the biggest rate increases – ie. Japan & New Zealand 30% rate increases

• Workers Compensation Rates are also expected to rise with an increase in severity of claims

What Does This Mean For You & Your Clients?

Confusion for clients:“If I didn’t have any claims, I have been with the company a long time, and I paid on time, why are my rates going up?”

Need to be on your “A-Game” - Clients are going to expect more - Last year 100% of people that shopped for insurance got some sort of preliminary quote online. - 39 million auto quotes done online in 2011 - Meaning its easier for clients to get more information faster & constantly comparing you to the online arena - Clients will ask, if they aren’t already, to “Shop” them around.

What Can We Do About It?

Fun Fact: 60% of customers will shop when a

premium change is not explained to them.

When customers are notified in advance of a premium change and given options, their satisfaction is higher, even compared to

customers whose premium is decreased.

Don’t Hide From Rate Increases. Look at it as an opportunity to build a

relationship with your client!

What are some good ways to identify customers experiencing a rate increase?

1.) Use your management system - Set triggers/ alerts for 10% or higher in rate changes

2.) Investigate the possible reasons for rate changes

3.) Look at prior policies including where the client was before they came to you.

3.) What is your renewal process? - 60, 45 & 30 days prior to renewal for PL, 90 days for CL

How Do You Document Year Over Year Changes In Your Customer Polices?

1.) Keep copies of original policies or notes on what you initially saved a client. We all forget & so will the client just how much you were able to save them.

2.) Notes are great - maybe it is time to take a 2nd look as their history improves.

3.) Keep notes on what happened when you reviewed their policies last year.- Did you explain how they can save & be proactive in the past? Did

they do it & take your suggestions?

What procedures do you have in place to notify clients proactively?

Initiate the call BEFORE the client receives their renewal.• No one likes being caught off guard. If you can advise them BEFORE, you

look like you are thinking specifically of that client and what to let them know so there are no surprises.

• This is a good time to set up an appointment for a policy review, Should be done 45-60 days prior to the renewal.

• You can address any changes or discounts they may not be getting as well as addressing if this is the right company for their lifestyle and if they have enough coverage to protect their needs.

How do you break the news to a customer who will be experiencing a rate increase?

1. Break the news early so the client knows what to expect.

2. Begin by setting up a renewal appointment with the client 45-30 days prior to the renewal date.

- Better if you can have an assistant set up the appointment for you.

3. Find out the reasons for the rate increases & if there are any discounts the client is not getting.

4. Use scripts & make sure your staff or other team members are comfortable navigating this conversation

Scripts You Can Use to Navigate the Premium Increase Talk:Initiating a conversation:“I’m calling to speak with you regarding your upcoming renewal. While review your [auto/home/commercial] insurance policy, I notices a change that I think we should discuss. Is now a good time to talk?”

Calming a Frustrated Client:“Mr/Mrs.Client, I can completely understand your frustration right now. Price increases are never pleasant news. My own policy has also increased, even more than yours has, so I definitely feel where you are coming from. However, I’m confident that we can find some options that you may be interested in. How about we set up an appointment next Tuesday at 10am to talk more in detail about this? This will give me time to review everything with you and take a look at all of the changes to your policy as well as explore any other available options we may have for you. My goal is to make sure you and your family is protected the right way at a premium you can afford without sacrificing coverage. Can we do that for you?”

Other Points to Navigate the Conversation

1. Use this conversation quickly address any discounts the client can take to be more proactive in their own policies. i.e Defensive driving for auto, alarm systems for home, TIPS training for a restaurant, multi-policy discount, etc.

2. Also the payment plans and any discounts available there. This helps the client realize that they can control some of their own premium as well.

3. This is also a good way to x-sell clients by letting them know of cross policy discounts available to them.

How do you retain a customer that you can’t rewrite?

Addressing customers if a premium change is not possible:“After reviewing your policy, and taking a look at the other options, it looks like the best fit for you and your insurance needs is still with “Company X.” I’m sorry that we are not able to make any adjustments to your policy that will lower your premium for this term. You are a valuable client to us, so I will keep a lookout for discounts, adjustments or options that might work in your favor in the future.”

*** Remember even if you are not able to save them money, make sure you explain what each, coverage does for the client. Give real life examples as to how this would protect them. This is a great way to know your client better. You get a chance to educate your clients on the value.

***Let them know that it is ok if they shop it around, you understand, but you hope that they match the coverages.

Coverage vs. Price is a huge issue in insurance sales… How do you navigate the value proposition?

1. Know your competitor & what their strengths & weaknesses are.

2. Know your companies & what their differences or strengths are.

3. Not every company is a good fit for each client.

4. Know what is important to your client & you will retain more by placing the client with the right company.

Show Value vs. Price…Tell them what they are getting for their money.

Coverage vs. Price

Remember, Insurance can be confusing to people, and with complicated matrix’s that the companies create nowadays, it can be even more complex to explain to clients as to how rates are set.

Coverage vs. Price: Techniques During A Review 1. Explain all of the coverages in detail to the client – this is where you explain the

Value- what they are getting all of their money’s worth. Also a good time to up sell clients – ie. Increasing coverages, or additional coverages on their policies.

2. Explain anything that is counting against them – i.e. on car insurance, tickets, accidents, inexperienced operator surcharges, payment history, etc. and when these items will change in their favor.

3. Explain other potential discounts – APCD, EFT, Alarm systems, higher deductibles, Cross Policy discounts, etc.

4. Update your systems with your clients occupation, changes in lifestyle, and where their other insurance is. This is a good time to explain what else you do & how you can help them – plant the seed. Ie. Life insurance, renters, etc.

5. Remember when explain savings – do that on a large sum (annual savings) when explaining premium increases or additional premium, do that on a monthly or even daily basis. Small numbers seem are more manageable.

The Power of Words – How Can Words Retain Clients?

Customer vs. Client

Cheap vs. Inexpensive

Value vs. price

-> How is what you are saying affecting your clients perception?

Talk Path Matrix

3 simple words:FEEL, FELT, FOUND

“I understand how you feel…many have felt the same way…

what many people have found was…”

No problem. Be happy to… I understand…

Please allow me… I’m confident… Easiest part of

my job…

Wouldn’t expect you to…

Would you do me a favor…

Please tell me no.

Our belief is… Our commitment… Our desire is…

Our goal is… Our hope is… Our mission is…

Our policy… Our success… Our wish…

Other Situational Talk Paths

Use any 3 or more of these to navigate the conversation with a

client

How do you make sure the entire staff is on the same page with premium increase calls?

Practice, practice, practice…And then practice again!

1. Use the talk path points

2. Teach your staff the discounts or if you are a CSR, know the available discounts.

3. If the client is still not happy, set up a renewal review appointment to review the polices with the producer at a later date. Do Not Tell People we can Shop you around – this implies cheap & changes the focus back to pricing. Tell clients them we can review the coverages with you to be sure you are getting the best value and if Company X is still the best fit for you and your needs.

How do you follow up with a client after a premium increase?

HUG YOUR CLIENTS!

1. Send out a thank you card, or letter 30 days after their renewal. Handwritten is better. It shows you cared.

2. Send a Survey for Feedback

3. Ask for referrals – this is a great time

4. Create a follow up date to contact the clients about x-sell opportunities

5. Reach out to your clients monthly. Build a fence around your clients.

Just Remember!

1. Keep talking to your clients. Be proactive in contacting them first instead of them contacting you when there is a problem. This lets them know you are thinking about them.

2. Separate yourself from the online carriers, and the broker down the road. Get to know your client, and let them know that you are thinking about them. Make them feel like they are the only one you are thinking of. People do business with you for a reason.

3. Remember, nobody cares how much you know, until they know how much you care. You want to treat your client like a person not a number, make sure they look at you the same way.

ANY QUESTIONS?