I recently discussed the need for agencies to take steps to “create a plan to survive these difficult times.” One of the steps I recommended was to communicate with clients. I suggested that you be proactive in providing them “extra information and services that will help them manage their business better.” Over the last couple of months, I have thought even more about how important it is to be proactive with clients. As I said earlier, “This will go a long way to build loyalty with your clients.”
I would like to offer a few more suggestions on steps you can take to build loyalty with all of your clients, both personal lines and commercial.
Conduct an annual review
The first step is to make sure you conduct an annual review with all clients this year. Here are a few of the areas to explore during these reviews.
Personal lines clients:
- Ask about their job security. If people are afraid of losing their jobs, they may make decisions about insurance coverages they can do without. Or, they may stop paying.
- Review the options available for reducing premiums for their auto or homeowners policies.
- Make sure they understand the financial responsibility requirements in your state for insurance coverage on their automobiles. Some people are letting their policies lapse. Lower coverage may be better than no coverage.
- Look for and provide information on how to manage credit card and other debt.
Commercial lines clients:
- Ask if they anticipate layoffs in the coming months. Check with the carrier to see if they can provide any help during the transition. Layoffs can often increase workers compensation claims. Tell the client you want to help protect their losses and experience modification.
- Review the current premium basis on their policies. Are last year’s estimates now too high? Check with the insurance company to see if they will do an interim audit and adjust the premium mid-term. Yes, you will lose some commission dollars. But, you could lose them anyway. Why not look out for your client now when they may need the cash flow?
- Start looking at the renewal very early. Meet with clients and let them know what steps you are taking to make the policy renewal process as easy as possible. Clients will be looking to reduce their premiums. Let them know you are their advocate.
- Make sure you tell your clients that the insurance companies you do business with are financially sound.
These are just a few of the steps you can take to proactively communicate with your clients. Bring your staff together and brainstorm other steps you can take to make life a little bit easier during these turbulent times.
