How Do You Explain Premium Increase by 25% to Your Clients?

[iiinycboi]

How do you explain that after 2 months you wrote a policy that they say oh btw we need to increase your coverage so therefore your premium has a balance of X amount now.

I have a lot of clients on this carrier and i really hope they are not doing a bait and switch with the premiums. i would have a lot of explaining to do.

 

[senior-advisor-indiana]

Tell them to take their current premium times 1.25. Works every time.
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Sorry, I guess I should have read your post instead of just the title....

 

[iiinycboi]

yeah, i'm gonna have a lot of angry phone calls this week... they are doing it to all my new business clients. I can accept if they do it 1 year but they are doing it 2-3 months after the policy is issued.

 

[GreenSky]

You might want to be proactive and contact the clients before they call you. You want to appear that you have your clients best interest in mind and be ready to have alterative policies if necessary.

Rick

 

[VolAgent]

yeah, i'm gonna have a lot of angry phone calls this week... they are doing it to all my new business clients. I can accept if they do it 1 year but they are doing it 2-3 months after the policy is issued.

I'd suggest sitting down with your carrier rep. If they are doing it to all your business with them, there is a reason. Maybe they are unethical. However, not being a P&C guy, I'm going to bet you didn't properly determine the coverage needed and they have come behind you to audit the policies.

 

[iiinycboi]

i used their quoting system and it was issued for all policies at 200/sq ft coverage now they say we determined we need 235per sq ft so therefore we will raise your premium for correct coverage.
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You might want to be proactive and contact the clients before they call you. You want to appear that you have your clients best interest in mind and be ready to have alterative policies if necessary.

Rick

yes, i think i should call them after Christmas to let them know whats going on but i need to run some quotes for each client to tell them the alternative.

It will hurt my image/rep regardless of what i do though.

 

[Guest]

Be proactive, say something to the effect of, the company went out and did an outside inspection of your property, they determined that the house is a little under-insured and they are raising your coverage amounts, there is an additional $20-$50 charge or whatever for this increased coverage, but we NOW know, your house is properly insured. Most people wont be too upset if its under $50, they might question why you messed it up, but you need to deal with that.

Secondly, when you SIT DOWN with your carrier rep, I hope you printed out the replacement cost estimater so you can shove it in his face.

Third, with your cost estimater, are you quoting as a "average" house when the structure is really upgraded?

Also, you might be able to get some of the escrow accounts to pay the difference, call them first, then the clients might not even catch it.

 

[iiinycboi]

yeah i don't have a problem explaining 50-75 dollar increase but the price was 711 to 959 that's a big increase and hard to explain it.

In the insured's eyes, the agent is always at fault and the one who lied.


Yeah it is escrow / mortgage billed, i think the bank got it but they will eventually find out. I was quoting by sqft of the house with the structure properties.


This isnt the first time this carrier has given me problems. 4 months ago, they sent out bills/invoice to all my clients asking for payment when they already paid. They all called me / stopped by my office demanding if i took their premium. Maybe i should not even use this carrier anymore.

 

[Guest]

yeah i don't have a problem explaining 50-75 dollar increase but the price was 711 to 959 that's a big increase and hard to explain it.

In the insured's eyes, the agent is always at fault and the one who lied.


Yeah it is escrow / mortgage billed, i think the bank got it but they will eventually find out. I was quoting by sqft of the house with the structure properties.


This isnt the first time this carrier has given me problems. 4 months ago, they sent out bills/invoice to all my clients asking for payment when they already paid. They all called me / stopped by my office demanding if i took their premium. Maybe i should not even use this carrier anymore.

Well, this is a benefit of being an IA, use a different carrier..

 

[AZ Insurance Guy]

Quote the next higher deductible since it's higher valued, and requote with other carriers.