Retaining policyholders despite premium increases
Tips to connect with insureds to keep their business
One thing is clear about customer behavior: When prices increase, customers shop around. If a product or service doesn’t match the perceived value, customer loyalty is in jeopardy. Inflation is causing this in the grocery store — will I buy the name-brand product I love or shop off-brand to save some cash? And we don’t have to tell you it’s also happening in the home insurance market. As premiums have increased, policyholders are looking for different options.
With premiums going up, paying attention to strategies to maintain customer loyalty can help you maintain your book of business. Paying attention to retention can save you money. Acquiring a new customer costs anywhere from five to 25 times more than retaining an existing one, according to the Harvard Business Review.1 Use these tips to connect with policyholders, build the relationship and retain the business.
Be proactive
You know premiums are going up, not down. Reach out to policyholders before their renewal and anticipate their needs. Let them know what to expect. Position yourself as a trusted guide to partner with your insured to make sure they have the right coverage for their home. Build their confidence — let them know that you are looking at every possible option to reduce their premium.
“Reach out to your insureds 60 days prior to renewals,” said Al Trovinger, Vice President of Sales for SageSure. “Ask them important questions about their policy to determine if you can provide any cost savings. Even if you can’t give good news of a lesser premium, you’ve demonstrated that you’re looking out for them and working to protect their assets.”
Over-communicate
Educating your policyholders is a primary way to build trust and confidence. Insurance is complicated, and the nuances that inflation adds to the message can make communicating about the insurance scene tough. Share what you know, but skip the insurance speak.
“Communicate with the homeowner in terms they can understand,” Al said. “Don’t talk over them. Keep it simple and answer their questions.”
When it comes to inflation, you can share this Q&A resource with customers to help them understand how inflation impacts home construction materials and labor.
Carefully review each policy
Audit renewing policies for areas that might have been missed or overlooked when the policy was initially written. Perhaps the contents coverage is too high, and adjusting it to the proper amount could bring the premium down.
Make a personal call to the insured to find out if anything has changed with their circumstance. Ask the right questions about additions or structural changes, retirement or other living arrangement changes and whether or not things at home might affect their policy needs. What might have been true for a homeowner when the policy was bound could be different now.
For more details on how to lower the premium on a policy visit the article Quoting tips to get the best rate for your customers.
Remind customers why they chose SageSure
Peace of mind can come from having a company you know and trust to support you in difficult times. SageSure remains committed to providing products in underserved markets. Many carriers aren’t prepared to handle customer needs in these markets. We don’t just accept business in catastrophe-prone markets, we specialize in it. Our experienced team develops unique products that ensure affordable coverage, continuous capacity and long-term stability. We believe in stepping in where and when others step out.
Emphasize your expertise
Coastal states have unique risks and challenges that don’t arise inland. Insuring coastal properties isn’t the same as insuring a residence in the Midwest. Coastal homes present more risks and can be more expensive to protect. Remind customers why working with a producer with coastal experience matters. They wouldn’t choose a chiropractor to perform a root canal, but both are doctors. You have a specialty too, and that makes a difference in the advice they receive from you.
Here’s a resource to share with insureds about shopping for coastal insurance.
Leverage your resources
If you’re a member of a local, regional or state industry association, check out the resources they provide. If you’re not a member, consider becoming one. These organizations may have valuable information about the industry on topics that are timely and impactful. Resources specific to your area or community can be effective as you look for ways to maintain your business.
You can also reach out to your local SageSure account manager. These insurance experts are here to help you navigate the day-to-day complexities of underwriting coastal areas and are happy to assist and answer questions.
“As an independent agent and small business owner, you wear a lot of hats,” said Al. “We never want you to feel like you are on your own to figure things out. Let us help you.”
Hard markets are tough on business. Acquiring new customers costs more than investing in keeping the ones you have. Be proactive, communicate with your insureds, carefully review each policy and emphasize the importance of working with a carrier and producer with coastal experience.
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