Commercial lines re-marketing has a time and place but when we can limit the wasteful re-marketing we are winning!
Customers can demand to be re-marketed and sometimes we also overpromise to look around when the price gun is held up to us. In this article we walk you through the logical steps to reduce commercial lines re-marketing.
Step 1: Investigate The "Why"
- When we see a rate increase above agency standard, don’t panic! Many times there is a reason and our job is to investigate and provide options!
- Remember to keep your cool! Not everything is the agency’s fault or problem. Sometimes the client did something that caused an increase. There are always options:
- Recent Endorsement
- Payment History
- Review Client Activity
- Increased Payroll
Step 2: Discount Review
In order to ward off a re-market we want the client spending time with us. Take a moment and go through every available discount to see what they qualify for.
Common Commercial Discounts
- Safety equipment, Fire security, Bundling, Security System, Group/Associations, Safety Training, Loyalty, Employee Manual, Deductibles, Claims that can be closed
Step 3: Qualify the Re-Market
Oftentimes our most price sensitive clients are the lowest value to the agency. They are either overserviced or low premium. Work with the agency to identify what qualifies for a re-market.
Here are some standards to consider: Open Claim, Does it Meet the Minimum Premium, Monoline, Rate Change, Do we want to keep them?
In commercial lines we need to look at the type of business. For some industries there may not be much else.
Step 4: Review Coverages
Go into detail all the features of the current carrier. You need this if you are going to remarket to see what they want to keep or depart from. When you find out that other carriers don't offer a coverage it's your leverage to keep them right there.
If after all of that they don't qualify for a re-market you can do the following:
- Review why the rate increased
- Provide discount options
- Plan for the future
- USE MONTHLY FIGURES
Step 5: Last Attempt to Ward off the Re-Market
Follow this script to a T
I completely understand, it seems like everything is going up. Electricity, cell phone bills; it’s everywhere. As you may have read, insurance rates are no different. That’s why I’m calling to make sure we have the best information to get you the best value!
Rates in our state are going up on average X. However, that’s the value of working with us because we can help evaluate your options.
So let’s take a look at your account. It looks like your rates went up X which is X in relationship to the state average. That would be about X per month.
Now BE SILENT... if the client is getting a less than state average discount they may feel like they are getting a deal! Also, the monthly figure may change their mind on the rate drama!
Step 6: The Real Final Attempt
Before you re-market you must set up the rules of the road. This is getting their final buy in before you spend the next 2 hours and they aren't serious about moving.
- “I can review some other options for you, how much would you be looking to save in order to switch insurance carriers?”
Getting the client to commit to a savings is key. Once they realize it may not be worth the hassle or you see what they are trying to save, you can advise them easier.