To protect their clients’ best interests, brokers may suggest more comprehensive coverage, even if it comes at a higher cost. But expect clients to see things through a different lens — price point.
Conversations between brokers and their clients can quickly go off the rails when clients are skeptical about the cost of the coverage. However, approaching this conversation effectively is business-critical, Warren Weeks, principal at Weeks Media, said during the Young Brokers Conference in Niagara Falls last week.
Take, for example, Ontario’s direct compensation property damage (DCPD) coverage, which became optional on Jan. 1, 2024.
A client may hear on the news that they could save money on their car insurance by removing DCPD coverage. A broker may inform their client that by removing this coverage, they wouldn’t be covered in case of an accident, and they’d have to pay the repair costs out of pocket.
Yet, a client might insist on dropping DCPD, believing their broker is misleading them in exchange for a higher commission. How should a broker handle the delicate situation?
Weeks advises brokers to take a three-step approach.
First, to advise clients on adequate coverage, brokers must first listen closely, Weeks said of the above scenario.
“Listen to what the complaint is from the person on the other end of the phone or in the email,” Weeks said. “You’re going to have some clues in that message from them in terms of how you want to respond.”
That’s where emotional intelligence will prove crucial, just as much as policy IQ.
Second, Weeks advises brokers to approach the conversation with the client as a negotiation — and not take it too hard when clients complain about cost.
“When someone calls you up with a complaint, our human nature is [that] we go into defensive mode, and we’re now adversaries, when really you’re on the same team,” Weeks said. “It’s taking that moment to reframe it and to say, ‘Look, we are on the same side, let’s help solve this.’”
Third, said Weeks: “Don’t just sit there in fire extinguisher mode — look for an opportunity to bring solutions.”
For example, bundling home or tenant insurance with an auto policy is a common way consumers can save on auto insurance without dropping coverage.
On the other hand, fighting fire with fire is a fair approach for a customer who’s learned of this coverage option from a news story.
“In this situation, if a person…[said] ‘I saw on the news that I could do this and save some money,’ I would maybe go to the news and say, ‘Here’s an example of a cautionary tale of something that took place where someone tried to do this and they were financially devastated.’”
Weeks also advises brokers to avoid using customers’ negative words to talk about insurance. “If you’re just inflaming the situation with those words, it’s not going to help,” he said. “Be the architect of your own content. Don’t necessarily use the same words that an angry customer peppers into the conversation.”
Feature image by iStock.com/fizkes
