How to let the value of insurance shine, not just the price
In a tough economic climate, the price of insurance tends to become the deciding factor for many clients. Yet, if you ask what they look for in an insurance partner, it would definitely be excellent value and great customer service. As insurance is an intangible product, it’s important to promote the value that your client will receive. Here are our tips on making the sale on value.
1. Get to know what your clients value in life to offer tailor-made solutions
Insurance covers physical things and processes but it also reassures fears. A father might want to know that should his student daughter get in a car accident, she will be looked after by her insurer every step of the way. A factory owner might say that he/she can’t let customers down by not being in production – keeping the production line going would be his greatest concern. For some, crime might be a big fear factor. Your client needs to feel as if their insurance is tailor-made to their business or personal needs. Listen carefully and help them find a value – not price – solution.
2. Explain the benefits of discounts, bundles and other value-added services
An experienced intermediary knows the tricks of the trade – the discounts to offer, the bundle purchases to choose and the value-added services to highlight. You can also point out which discounts a client will receive for good risk management, e.g. installing a vehicle tracking device. If an intermediary doesn’t share this information, a client may have never known that it existed – instead choosing an inferior product based on price alone.
3. Highlight the value of buying through an intermediary
You might know that it doesn’t cost more to buy insurance from an intermediary but you’ll be surprised how many people believe the contrary. Therefore, it is important to explain your role to new prospects. You are not only saving them money – you are sharing your knowledge and risk management expertise with them. You will get to know their specific circumstances and offer discounts specific to them. For an intermediary, a client is a person or business with very specific needs – not just a policy number.
4. Compare the value of insurance to other valuable things
Insurance is a grudge purchase for many. Clients will always want to pay as little as possible. Therefore, you have to get a bit creative in how you highlight the value that your client will receive. If a business client owns a nice car, ask him/her why they like that model? Or ask a homeowner why he has a certain brand of flat-screen TV. If you can engage with a client on the subject of quality, then you’ll have a way of discussing why certain insurance premiums are higher than others. As the saying goes, you get what you pay for. If you’ve customised a car to your liking or put years into building a business, why risk it with inadequate cover?
5. Talk about claims
For some clients, insurance is a box to tick without sparing a thought for the ‘what if?’ of the claims process. Talk it through with your client and explain to them what a stressful time an insurance incident can be. In the event of a burglary, car accident, weather damage or machinery breakdown it’s important for claims to be resolved quickly and professionally. This is the time where you want to be with an insurer that pays 99% of claims (as is the case with Santam).
6. Explain the cost of not having insurance
Finally, if the decision is stuck on price, compare how much money your client could save by not choosing your insurance policy (e.g. R100 per month) with the potential cost of not buying it (potentially thousands of rands in under-insurance or repudiation). This is not about fear mongering but about getting a client to really ponder what could go wrong, and the financial devastation that this can cause.
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