The single best way to improve your lapse/cancellation ratio is…

Earlier today I had a conversation with a homeowner who was so frustrated with his current insurance agent that he decided to shop around – not for a better price but for a better agent.  His frustrations stemmed mainly from his current agent “not doing anything.”

He lamented about filing a claim last year and said the agent told him “You’re not supposed to call me – You’re supposed to call the insurance company for claims.”  While I doubt those were the agent’s exact words, we must be mindful as insurance agents that the things we say are not necessarily the same things the customer hears.

He claimed that his agent hadn’t contacted him a single time in the three years he’d been with him.  He said his agent had been doing nothing and has been making money off him all these years.  I asked this gentleman what did he expect from his agent – what would have made him stay.  He told me the same thing I’ve heard time and time again:

“I wish my agent would have contacted me to let me know if there was anything better out there.”

The homeowner had expectations that simply weren’t being met.  But his simple request is something we hear all the time here at Chrinco.  People expect their insurance agent to be proactive.  They expect their insurance agent to put the homeowner’s interests above their own.  They expect their insurance agent to find the best coverage, at the best price, with a highly-rated company.

The reality is that many insurance agents are so focused on building their book that they overlook the things they could be doing to keep customers from leaving.

The single best thing you can do to improve your lapse/cancellation ratio is to let the customer know you’re working for them.

Let the customer know, before they call you, that you have looked over their policy and they have the best coverage at the best price.  Or that you looked over their policy and you’re going to see if there is anything better than what they currently have.  When the customer calls in with a claim – take the initial information down and call it in for them.  A simple email or phone call letting the customer know you did these things will go a long way to solidifying their relationship with your agency.  In time, you’ll see your lapse/cancellation improve.

Related article: Three things you can do today to consistently get quoting opportunities.

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