Communication with clients about high rates

[insurancequestion]

With rates going up, how often do you guys contact clients to let them know that their rates are going up? What verbaige do you typically say to them? Is it email, is it a phone call? Is there a certain amount that you call them once the premium goes up? For example if the premium goes past $500.

Is it bad to run a quote for a client ever year at renewal time? Does it ding them in any way?

 

[Allen Trent]

With rates going up, how often do you guys contact clients to let them know that their rates are going up? What verbaige do you typically say to them? Is it email, is it a phone call? Is there a certain amount that you call them once the premium goes up? For example if the premium goes past $500.

Is it bad to run a quote for a client ever year at renewal time? Does it ding them in any way?

If you are talking personal lines PC, you really cant run quotes without getting the clients affirmative approval if it involves insurance scores (credit based insurance scores) and/or MVRs and/or reports of who lives in household

Each time you run quotes & the carriers pull those data reports for the pricing algorithms, it will show as an inquiry on their credit reports. (no impact to their credit score). So, it isnt uncommon for someone that calls around to 4 different insurance companies to show lexis nexis on their credit report 4 times for the same day they got quotes because those carriers bought the insurance score reports from Lexis.

now, if you are merely using carrier software to get a price without any data hits, I would think you are OK, but many carriers are pulling these reports at quote.

 

[fed up]

30 days prior to renewal or as soon as you are made aware of the proposed increase and it is over 10%

 

[Policy Monkey]

With rates going up, how often do you guys contact clients to let them know that their rates are going up? What verbaige do you typically say to them? Is it email, is it a phone call? Is there a certain amount that you call them once the premium goes up? For example if the premium goes past $500.

Is it bad to run a quote for a client ever year at renewal time? Does it ding them in any way?

It can depend on your workload. If you have a smaller book and/or a hands-on relationship with your clients, a phone call may be better. But if Texas gets like Florida, where every policy increases every term, a bulk email or mailer would save a lot of time.

 

[Policy Monkey]

If you are talking personal lines PC, you really cant run quotes without getting the clients affirmative approval if it involves insurance scores (credit based insurance scores) and/or MVRs and/or reports of who lives in household

Each time you run quotes & the carriers pull those data reports for the pricing algorithms, it will show as an inquiry on their credit reports. (no impact to their credit score). So, it isnt uncommon for someone that calls around to 4 different insurance companies to show lexis nexis on their credit report 4 times for the same day they got quotes because those carriers bought the insurance score reports from Lexis.

now, if you are merely using carrier software to get a price without any data hits, I would think you are OK, but many carriers are pulling these reports at quote.

I'm not sure that's correct. I've been told by carrier reps that, since the "insurance score" is a whole separate product that the "credit score" (even though they use the same info, and are created by the same companies), it won't even show as an inquiry, let alone a ding. If it did show, even as an inquiry, it would be a nightmare for new mortgages or loan closings. Also, I quote my own policies every renewal and I stay on top of my credit reports and I've never noticed any inquiries. Or maybe it just works that way in Florida?

 

[Allen Trent]

I'm not sure that's correct. I've been told by carrier reps that, since the "insurance score" is a whole separate product that the "credit score" (even though they use the same info, and are created by the same companies), it won't even show as an inquiry, let alone a ding. If it did show, even as an inquiry, it would be a nightmare for new mortgages or loan closings. Also, I quote my own policies every renewal and I stay on top of my credit reports and I've never noticed any inquiries. Or maybe it just works that way in Florida?

Maybe that is Florida or the carrier rep was saying that lenders who pull hard hits on credit report cant see the soft inquiries like an insurance score or a background check would be

. But I have seen the inquiry on my own credit reports. My brother in law also showed me his credit report. his wife got quotes from 4 carriers one time & it showed all 4 pulling the inquiry. Funniest part is each was run by Lexis, so Lexis got paid 8 times to run his & wifes data & 4 different carriers paid for the inquiry.

you are correct, it is an inquiry only, no ding on point system like would be the case if applying for actual credit, etc. Does An Insurance Quote Affect Your Credit Score? (caranddriver.com)

 

[marindependent]

With rates going up, how often do you guys contact clients to let them know that their rates are going up? What verbaige do you typically say to them? Is it email, is it a phone call? Is there a certain amount that you call them once the premium goes up? For example if the premium goes past $500.

Is it bad to run a quote for a client ever year at renewal time? Does it ding them in any way?

You should consider contacting every client at renewal, not just the ones that have rates going up. Regardless of their rates going up, down, or sideways. For personal lines its rare that year of year tat there are no changes to their risk profile.

You will have ot use your best judgement and experience as to when to run new quotes or estimates for clients.

But... I might encourage you to get out of the "price game" and start selling more as a risk manager. There will always be a gecco or an emu around the corner that is willing to sell alone on price. I have made more long term clients identifying hidden unknown risks for smart people than I ever have by saving someone 8%. Reach out to these people and find out how their lives have changed.