Avoiding Insurance Policy Cancellations

Avoiding insurance policy cancellations is about offering excellent service.Cancellations account for a large percentage of lost business in the insurance industry each year, some of which result in charge backs to the agent when he or she is being paid on advanced commissions. Therefore, it is critical to develop some strategies for avoiding cancellations when at all possible, so this withdrawal rate can be minimized to the greatest extent.

Here are some tips to keep in mind to avoid canceled policies:

1) A good customer is a happy customer. Keeping this simple but true rule in mind will help turn the goal of getting and keeping good customers into a reality. If the sale you make is a solid sale, and you have provided all the information the customer needed to feel good about their purchase, they will rarely drop the policy.

One way you can make sure your customer is happy is to ask if there are any other questions they have before you go.

Doing this will not only allow them the opportunity to ask needed questions while you are there, but also increase their confidence in you, and assure them you have their best interests at heart.

2) Follow-up with your clientele. We’ll discuss this in our next post in more detail. Suffice it to say for now that following up to check on clients is just good business. In order to be successful, make a habit of touching base with your current clients at least once every 3 months, to see if they have any questions or if there is anything you can do for them. Customers who were thinking of dropping the policy may reconsider if you offer them personal and courteous service at the right moment.

3) Send birthday cards to clients. This is an old insurance sales technique that a lot of agents have been using for a long time. But it gets results. Some clients will call, thanking you for the gesture. You may not hear anything from others. But something like remembering someone’s birthday is important to that person, even if it does come from their insurance agent.

4) Send new flyers and information on their policy or the company when it is beneficial to your client. Giving them important information may be the key to keeping clients happy and on the policy.

5) Regarding cancellations which happen due to a bank issue: Treat this with kid gloves. Many customers are embarrassed when they are told that their policy lapsed due to non-payment. Just a friendly reminder with a presumptive tone which implies you know it was probably an oversight on their part can save face with the client and keep them on the policy.

Finally, when cancellations do occur, as they sometimes will despite your best efforts, just realize that this is part of the reality of insurance sales. Sometimes people shop around, just as they do with other services, and they have a right to do so. Likewise, remember that you want customers who will pay on time every month, and who are happy with your services. If you sign up solid customers to begin with, make yourself available to them, and help them when needed, the cancellation rate should be kept to a minimum.

Choosing a Leads Service

How do you find a leads service that works?One of the most difficult tasks for a beginning insurance agent is to find a leads service that really works. There are plenty of leads companies out there, but how do you know which one will be the most cost-effective for you, and make the biggest return on your investment? There are 6 basic tips which may prove helpful in determining how to choose a leads program.

1) Decide how much you can afford to spend. Any business has to exist on a budget. It does no good to get leads if you cannot afford the leads program. There are cases when a leads program becomes so costly that it shuts down an agent’s business. Budget a reasonable amount of leads money per month and stick with it, increasing it as you make more sales.

2) Shop around. It’s good to compare leads companies, much like you would when looking for any other service companies that will help your business. Look at the company’s claims on return on your investment and see how they stack up. Also compare cost and see how you can get the most “bang for your buck.”

3) Ask yourself if you even needs a leads company. If you can do this yourself, and your network is big enough, don’t use leads at all. Simply talk to everyone in your network of friends via social media and other means to drum up business. Leave business cards anywhere and everywhere you can. Pass the word. Do your own marketing, and ask for two referrals from every sales call. Doing these things may allow you to operate as an agent without a regular leads service.

4) Track and analyze sales. Decide how many of the sales are coming from the leads you are getting from your leads service. If there is not a direct result from the leads company, shop around for a new company or consider trying something else to generate leads, such as postcard mailers, hiring your own leads generators, or other methods.

5) Target your audience. Leads do no good if they are directed to a different audience than the one you are trying to sell to. Market only to your primary audience through your leads company, or through other methods you’re using. The main thing is determining that your leads company is targeting your main audience. For example, if you’re selling to seniors, aged 65 and over, make sure the leads that are being generated are 65+ seniors in need of insurance. Some companies say they will deliver on this, then the leads show a 25-year-old with $100,000 worth of coverage. If this happens, call your leads company and have them change the demographics. If they won’t, find another service. It does you no good to pay for leads which do nothing to target the people you need to market and sell to.

6) Don’t share leads. As much as possible, get leads which are only sold to you. If you have to share leads, other agents may beat you to the sale if you are doing something else at the time the lead is generated. Most leads are generated automatically to your email once the person fills out the information. While non-shared leads are typically more expensive, they also pay off more in the long run.

Summary: In conclusion, a leads company doesn’t make you sales. You do that. But a leads company opens the door. Let that door be to a customer who will want to purchase, carefully matched to the demographic audience you are trying to target. Some fine tuning of what your leads company is really offering and what it is really delivering, plus a regular monthly analysis of your sales, will go a long way to getting the most for your dollars and a higher return on your investments.