To guard their shoppers’ greatest pursuits, brokers could counsel extra complete protection, even when it comes at a better price. However count on shoppers to see issues via a distinct lens — value level.
Conversations between brokers and their shoppers can shortly go off the rails when shoppers are skeptical about the price of the protection. Nevertheless, approaching this dialog successfully is business-critical, Warren Weeks, principal at Weeks Media, stated throughout the Younger Brokers Convention in Niagara Falls final week.
Take, for instance, Ontario’s direct compensation property damage (DCPD) protection, which turned elective on Jan. 1, 2024.
A consumer could hear on the information that they might lower your expenses on their automobile insurance coverage by eradicating DCPD protection. A dealer could inform their consumer that by eradicating this protection, they wouldn’t be coated in case of an accident, they usually’d should pay the restore prices out of pocket.
But, a consumer would possibly insist on dropping DCPD, believing their dealer is deceptive them in trade for a better fee. How ought to a dealer deal with the fragile state of affairs?
Weeks advises brokers to take a three-step method.
First, to advise shoppers on enough protection, brokers should first pay attention carefully, Weeks stated of the above situation.
“Take heed to what the criticism is from the particular person on the opposite finish of the cellphone or within the e mail,” Weeks stated. “You’re going to have some clues in that message from them when it comes to the way you wish to reply.”
That’s the place emotional intelligence will show essential, simply as a lot as coverage IQ.
Second, Weeks advises brokers to method the dialog with the consumer as a negotiation — and never take it too exhausting when shoppers complain about price.
“When somebody calls you up with a criticism, our human nature is [that] we go into defensive mode, and we’re now adversaries, when actually you’re on the identical crew,” Weeks stated. “It’s taking that second to reframe it and to say, ‘Look, we’re on the identical aspect, let’s assist remedy this.’”
Third, stated Weeks: “Don’t simply sit there in fireplace extinguisher mode — search for a chance to convey options.”
For instance, bundling house or tenant insurance coverage with an auto coverage is a typical means customers can save on auto insurance without dropping coverage.
Alternatively, combating fireplace with fireplace is a good method for a buyer who’s discovered of this protection choice from a information story.
“On this state of affairs, if an individual…[said] ‘I noticed on the information that I may do that and avoid wasting cash,’ I’d perhaps go to the information and say, ‘Right here’s an instance of a cautionary story of one thing that happened the place somebody tried to do that they usually have been financially devastated.’”
Weeks additionally advises brokers to keep away from utilizing prospects’ unfavourable phrases to speak about insurance coverage. “Should you’re simply inflaming the state of affairs with these phrases, it’s not going to assist,” he stated. “Be the architect of your personal content material. Don’t essentially use the identical phrases that an indignant buyer peppers into the dialog.”
Function picture by iStock.com/fizkes
