How do you reassure a client who feels their premium increase is unjustified?

More than just simply explaining factors, start by expressing empathy and acknowledging their concern. Let them know you understand their frustration with a price increase. Then explain in a detailed way, the factors. A respectable insurance company doesn't increase the premium just because.

An important aspect of the premium is that factors play a vital role In violations, accidents, vehicle age, etc. Explain the key parameters and factors which impact the overall premium and also explain what things can be considered which would eventually push them in getting a discount on overall premium by a certain percentage

Reassuring a client who feels their premium increase is unjustified involves a few key steps. Begin by listening attentively to their concerns to understand their perspective fully. Next, provide a clear and straightforward explanation for the increase, including any changes in risk assessments, economic factors, or specific incidents that contributed. Highlight the value and benefits of their coverage, emphasizing how the policy protects their interests. Offer to explore options for mitigating the impact, such as adjusting coverage levels or seeking applicable discounts. Maintaining transparency and demonstrating empathy can help foster trust and satisfaction amidst the changes.

Increase in premium is based upon multiple internal and external factors and is usually industry wide to safeguard the interest and minimize the risk.

Highlight that their premium is affected by multiple variables, including their personal claims history, credit score (where applicable), and life changes like purchasing a new car or relocating. Additionally, external factors such as natural disasters can lead to industry-wide increases as insurers adjust to cover broader losses. By detailing these factors, you can help the client understand that the premium adjustment is not solely about them but a reflection of both personal and broader economic elements.

When you do a policy review, always start by highlighting the value of their product. If possible mention specific examples of how the plan has helped them in the past or could potentially help them in the future. Most of the policyholders forget this.

Reviewing your policy is a proactive step to understand why your premium has changed. Examine the policy line by line to identify any adjustments in coverage or new endorsements that may have impacted the cost. If you find coverages that seem unnecessary, discuss with your insurer the possibility of removing them to lower your premium while still maintaining adequate protection. This detailed review can help clarify changes and potentially reduce costs without compromising your coverage.

Ensure your insurer has the most current details about your situation, such as the installation of a security system or a teen driver completing a defensive driving course. These updates can positively impact your premium. Regularly providing your insurer with the latest information helps keep your premium aligned with your actual risk level, potentially leading to adjustments that reflect your improved risk profile.

Reassurance = retention. In Florida’s current market, it’s crucial to engage clients in discussions about their insurance. At our agency, we’ve found many new clients haven’t had regular, meaningful conversations about their policies with their previous agents. Despite homeowners insurance being mandatory for home financing, they often don’t fully understand it. With rising premiums, it’s key to help clients know what they’re paying for and what can be adjusted or eliminated. I believe in proactive communication. By initiating conversations about renewal changes and reviewing policies together, we also ensure retention. When clients feel understood and supported, they stay with us, and our relationship grows stronger.

If at the end, they do have a financial burden with the premium, see if there are any ways to help them adjust their plan to reduce the premium increase. Increasing deductibles, reducing coverages or flexible payments could help.