What to do when you see a rate increase on a renewal review?

We know we want to slow down re-marketing but there are times we need to bite the price bullet!

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One of the best benefits of making renewal calls is slowing down the re-market volume and having the ability to re-market someone when they need it, not request it. There are times when we hit a renewal review and the reality is the rate has gone up and well, it's not pretty. 

🏹Agency Standards

For each agency we try to target an agency standard. This is the target rate increase where internally we need to have cause for caution. Here is how you get an agency standard:

  • Premium Increase
  • Dollar Amount Increase

Your agency really needs to look at both to cover their bases. 

Many agencies ask for our opinion on this. While each region is different, for a standard region with no weather or other impacts we target $250 per policy or $400 on the package. 

When you see a renewal that has increased over the agency standard we need to get to work. 

📲 Before the Call 

Do your homework. A large percentage of these clients will have had a reason on why the rate increased. Typical ones can be:

  • Endorsements
  • Claims
  • Tickets or accidents
  • Payment History
  • Insurance Score
  • When was the last RCE/MSB conducted?

If you can find a reason, make sure you alert the client to the reason on the call!

💬On The Call

You need to have a strategy for this call!

  • 🔎Save the rate discussion until you complete the review - you may find things that change the scenario
  • 🙇 Take a deep dive into discounts, leave no discount un-turned even ones they may reject such as pay in full or usage based apps
  • 🐊Review any oddities that may prohibit a re-market (age, use, open claims etc)
  • 🚨 Break the increase into monthly $ when reviewing the new rate
  • 👌 Research the average increase in your state - frame their increase in relation to the state average. For some people their increase is lower than the state average and this makes it a bit more relatable. 

Generally we recommend agencies do not reference rate on the renewal call.  However, when a rate is above agency standard we do recommend that you state the rate in monthly terms to identify the client's response and create a plan of attack. 

🚩 When You Do Re-Market

Here are a few tips for you if you should re-market the account:

  • Confirm with the client a target savings they would be looking to achieve to change companies
  • Inform them of any inspections and get their approval
  • Educate them on any new down payments 
  • Do not use the words "re-market" or "re-shop".  Instead state you will review some additional options (this helps in the event you do not have a better market)
  • Book a time with them to review their options.  People take the path of least resistance if you can solve their problem and they generally stick with you!