How To Stay Competitive During Rate Increases

23 Dec How To Stay Competitive During Rate Increases

Many consumers are becoming more budget-conscious. Economic uncertainty that arose during 2020 caused more consumers to seek better value for their dollar. While current insurance customers spend more time evaluating their finances and trying to minimize expenses, a rate increase on insurance coverage could cause concern. Insurance sales teams may not have control over insurance rate increases. However, they do have control over the way they manage their client relationships and encourage customer satisfaction. A rate increase does not mean you will lose your clients. It means your clients will likely be positioned to consider actions that will lower their insurance costs. 

Rate increases could potentially spur customers to question their coverage and seek alternative quotes. By communicating about increases, this can also be an opportunity for sales teams to elevate their service and enhance their customer relationships without losing business. As insurance sales teams focus on closing out Q4 strong and preparing for business in 2021, here are a few tips for staying competitive during a rate increase. 

Know Insurance Trends & Be Ready To Communicate Them

Often when insurance rates increase, there are shifts in the market. It is rare that only one provider experiences rate increases. As a result, it is vital that you stay abreast of changes in the insurance industry. It is key that you are prepared to clearly and effectively communicate industry shifts to your customers, especially when they affect insurance rates. Current knowledge of insurance trends can help you provide a better customer experience.     

Be Proactive & Connect With Your Top Clients

When you become aware your clients may be impacted by a rate increase, do not wait for them to contact you. Often, taking the opportunity to make first-contact can help prevent the loss of a client to a competitor. When planning your client outreach, leverage the most high-touch communication strategies. Consider using a combination of phone and email tactics, and don’t forget the value of voicemail messages. Aim to rely on an outbound call strategy, with email and text messaging as follow-up communications. Phone calls will allow you to have the most connected and personal interaction with your client. This can be helpful when conveying information about rate increases. 

Be Prepared To Overcome Price Objections

While many insurance customers care about the price of their coverage, cost is not the only concern. When rates increase, insurance agents should be prepared to answer questions on price. Also, agents should provide resourceful information on other aspects of coverage and service that help insurance clients. Consider focusing on your company’s optionality, flexibility, customer service and reliability in your client communications when overcoming objections related to rate increases. 

Focus On Providing A High-Touch, Positive Experience

While agents cannot lower insurance costs, an outreach that focuses on the positive can be an impactful way to sustain a warm and lasting relationship with your clients. Rate increases could cause your clients to feel frustrated, disappointed or generally concerned. But, while customers care about cost, they also value transparency, honesty, relatability and empathy. As an insurance agent, you have the opportunity to set yourself apart from your competition by creating and maintaining relationships.  

Embrace Strategies That Consistently Fill Your Pipeline

While no agent can prevent rate increases from occurring, they can focus their efforts on customer retention by providing a high-touch, service-oriented experience. In addition to maintaining relationships with current clients, you should be embracing strategies to help you amplify customer acquisition efforts. ZipQuote can help agents focus on customer acquisition in 2021. If you are looking to connect with more consumers who are actively searching for insurance, ZipQuote can help. Click here to learn more about how ZipQuote can help you grow your business. Contact us today!