NO-ONE wants to be the bearer of bad news, particularly increased insurance premiums. But just as the price of new vehicles increase each year, premiums can’t stay the same forever!
Here are some tips that can help you to prepare to deliver the news and retain the account.
- Start the conversation early: Don’t deliver the revised premium a week or two before it is due.
- Prepare a detailed list of why the insurer has increased the premium: adverse weather events, more congested roads, large infrastructure exposures, increased replacement cost of vehicle components (vs repair) and the adoption of safer but more expensive technology in vehicles.
- Prepare year-on-year comparisons: Make sure your client knows the real cost of their premiums for the past five years. This will help to provide an objective comparison and the basis of a informed conversation.
- Prepare a list of any changes that have occurred to your client’s risk profile over the past five years that may have affected the premium. For example, does their fleet contain brands that are more expensive to service or repair?
- Prepare a list of the client’s loss history over the past five years. Remember to factor in any changes in the fleet size when considering loss trends.
- Obtain quotes from alternative insurers.
- Investigate alternatives, sure as high excess policies.
And finally, it’s always good to ‘chew the fat’ with your client. How much do your clients realistically expect to pay to insure a $100,000 rigid truck? Surely, it’s lot more than a $50,000 ute!