We all have those clients that are of influence within our community that would like to make sure they are service and taken care of within our agencies. Unfortunately this client is being cancelled due to loss frequency on his HO. The client has had a loss every year in the last three years. Two small losses under $600 (scheduled items disappearance) and one large loss of $4500 (pipe burst). Trying to convince insurance company to stay on the risk. I called the underwriter and supervisor with no success of reinstating the policy. I wanna go above his head to the branch manager but need advice on my approach. We are independent agency and in the last 2 years we have grown 40% with this carrier. We are at 1.4 million with this once carrier. I don't like to strong arm a carrier but this client is a value to the agency. As an owner what would be my best approach? Thoughts?
Advice on convincing insurance company
- Thread starter irish1939
- Start date
- 15,041
The honest answer?
Find the person a new carrier and tell them to stop filing small claims. Two scheduled items with mysterious disappearance is also disturbing, even if small. There really should only be one claim on this property.
Find the person a new carrier and tell them to stop filing small claims. Two scheduled items with mysterious disappearance is also disturbing, even if small. There really should only be one claim on this property.
- 2,262
Ask the carrier if they would consider keeping the policy if your customer raised his deductible to a much higher number,( over $1000 or 1% of the dwelling). Point out the amount of business the customer brings in and cross your fingers
- 4,570
Many states force the personal lines carrier to cancel the policy after the states essential insurance laws. this is so that insurance carriers cant be discriminatory like you are basically asking them to do. the idea is that home insurance carriers would selectively choose which clients they allow to renew with 3 or more claims & which they allow to cancel based on location, income, race, etc.
Make sure the client is 100% honest about being cancelled & the claim history with the next carrier or they could have a much bigger claim denied for fraud on the application
This
Why would anyone file a claim of $600 or less. ?? People are totally uneducated on how insurance works. Insurance is for the big stuff, use it wisely or you will pay out the a$$ for it in the future.
- 5,290
I'm sorry but this has bad risk written all over it. Literally.
Weedlebug
Expert
- 27
This is his property, what does his auto look like?
- 11,275
Are you a "people-pleaser"? Or are you a person who truly serves their clients - even with things they don't want to hear?
Your best approach... (and I'll be a little graphic here)... is to grow some brass ones and tell your client the truth about how insurance works. I don't care if he's the mayor of your city or a state senator. You need his RESPECT and that requires GUTS and "risking" the relationship. Even if he takes his business elsewhere, at least he should be able to TRUST you to tell him the truth, even and especially with news he doesn't like to hear.
I'd rather have my clients RESPECT me over LIKING me. You appear to want to be "liked" and you want to "please" them... which leads to "pleading/begging" them to stay with you.
I've attached copies of a Harvard Business Review series of articles. I would recommend that you read them - particularly #3, because I think it directly applies to your mentality.
Note: If you can't "replace" this relationship, you also have a prospecting and/or marketing problem because you shouldn't have to feel "at one's mercy" to please someone in order to keep the doors open.
Weedlebug
Expert
- 27
I have always reviewed with the insured the possibility of the policy to be non renewed with to many claims or types of claims, when they call to file the claim. Evan calculated/quoted out the policy to reflect the claim/ticket when the policy renews.
Now my new agent/owner does not want to have that conversation with the insured, for fear of them shopping. I have been told by the agent/owner, daughter of agent (a LSP) and another LSP in the office (all of which has under 2 years of experience to my 10
) that it is not our job to review the possible non renewal of the policy, the loss of discounts or the surcharge added to the policy. That claims has special training, that that's their job.
- 15,041
I have always reviewed with the insured the possibility of the policy to be non renewed with to many claims or types of claims, when they call to file the claim. Evan calculated/quoted out the policy to reflect the claim/ticket when the policy renews.
Now my new agent/owner does not want to have that conversation with the insured, for fear of them shopping. I have been told by the agent/owner, daughter of agent (a LSP) and another LSP in the office (all of which has under 2 years of experience to my 10
Ultimately it is the client's insurance and their right to file a claim, no matter what we may think as agents. However, any agent who isn't advising against stupid claims is doing a disservice to their insureds.
I always end with, "Now if you'd like to file a claim, I am happy to help you. Please let me know."
As much as I don't want them to file stupid claims, I also don't want to have to answer why I told someone they couldn't file a claim.
