Rising inflation and the cost of living, geopolitical conflicts, market fluctuations, and mounting debt have left today's consumers feeling overwhelmed by financial uncertainty. As insurance agents, it's important to help them reestablish a sense of control where they can: in their insurance policies.
Too often, people manage their insurance passively, only reaching out to their insurance agents when a claim arises. This may leave them vulnerable to coverage gaps and financially unprepared for the unexpected. As your clients' agent, it is important to encourage them to be more active by setting up regular reviews, assessments, and communication opportunities to keep insurance top of mind. The good news is that many of today's consumers recognize that insurance is essential to overall financial wellness, as it can offer needed coverage during life's most unpredictable moments.
According to a recent survey by the Independent Insurance Agents & Brokers of America (the Big "I"), nearly nine in 10 Americans (88%) say having insurance is very or somewhat important to their financial security. However, what many insurance consumers fail to recognize is that insurance is not simply a "set-it-and-forget-it" bill they need to pay every month. Not only must they have the proper insurance in place for their assets, but they also need to understand what their policies do and do not cover, and they must be maintained and replaced when necessary to ensure they perform when it matters most.
According to Big "I"'s survey, only about three in 10 Americans (32%) review or shop for insurance each year, with many waiting until premiums increase, major life changes occur, or coverage issues arise. Half of those surveyed reported that they only revisit their insurance after a premium increase or said they never review their policies at all.
Without a more hands-on approach to policy management, an individual's coverage can drift out of sync with their fiscal goals, assets and priorities. This oversight often goes undetected until a claim, premium increase, or coverage issue brings it to the surface. Yet by the time the policy is revisited at the moment of a triggering event, the consequences of having outdated or misaligned coverage may already be underway.
As insurance agents, it's up to you to help your clients avoid these potential pitfalls. First, it's important to position yourselves as advisors to your clients, not just brokers. The most effective agents in the industry recognize that their roles go beyond transactions, creating opportunities for frequent communication to provide insights and answer questions, thereby building trust and encouraging client retention.
As agents, it's important to move away from the "contact me anytime" advice to creating a system for regular policy reviews. This can mean setting up annual or semiannual check-ins with clients, as well as updates for any trigger-based events, such as a marriage, the purchase of a new home, a new job, or the launch of a new business. Agents can position this as part of their professional service model, creating an opportunity not only to provide advice and answer questions but also to build rapport with their client base. Depending on the preferences of the agent and client, this can be offered in the office or remotely by phone or video call.
During these check-ins, it's important that agents take the opportunity to ask about their clients' recent or coming life or financial milestones. This may uncover triggering events such as welcoming a new child, moving homes, or starting a new side business. Directly prior to or during these meetings, agents may also consider providing a gap assessment. This can help both the client and agent see where the gaps in coverage may be lurking. When laid out in a visual assessment, it is sometimes easier for clients to understand where they may be exposed, such as having an uninsured property, or where they may need additional protections, such as an umbrella policy.
Another tactic agents can use to help clients stay on track and informed is by leveraging digital touchpoints. This includes email newsletters, email blasts, short educational content shared on social media and timely automated reminders. These regular digital communications can keep insurance top of mind for clients and remind them about policy renewals and seasonal risks like hurricanes, wildfires and winter storms. Agents should focus on digital touchpoints that provide value and are timely, relevant and personalized, rather than sales messaging.
Easy-to-digest content in the form of checklists, short videos and real-world scenarios can help clients bridge the understanding of their policies and where there are potential oversights in coverage. Based on responses from a gap assessment, an agent can automate a system to send out a personalized message based on that client's milestone or life update. For example, sending a personalized card to a client congratulating them on the purchase of a new home or welcoming a new baby. Not only are agents providing needed information to clients, but they are also reinforcing a stronger professional relationship with them as their trusted advisor. These efforts in tandem can help encourage clients to be comfortable communicating more regularly with their agents and being more active in the management process.
A successful insurance agent knows that their role goes beyond just transactions. In times of financial uncertainty, today's consumers will lean on their professional network for guidance. This presents a unique opportunity for agents to further educate clients on evolving risks and get them more involved in the overall management of their insurance. By establishing regularly structured check-ins, initiating conversations around life milestones and updates, and leveraging value-driven, consistent communication, agents can build trust and create opportunities to integrate them into the process. When clients are empowered to actively engage with their insurance agents, they are likely to be better informed and protected from the unexpected. for clarity and completeness.
