You have put together the perfect solution for your customer. You know that the cover is more than they are ever likely to require. You value their business and have provided a very competitive quote. Deep down you know this is going to be a good result for your customer.
Insurance is a complicated business, and as financial services are often rated among the lowest trusted industries, consumers and businesses can be sceptical when faced with the final stage of the sales process and the decision on whether or not to proceed.
We strongly believe in responsible selling and making sure the customer is presented with the right choices and advice about the correct solution for their needs. With this in mind, we have pulled together some useful points to help close discussions satisfactorily, both for yourselves and your customers. Below you’ll find some tips and reminders.
Be mindful of the positioning of new forms of insurance
With an increasingly uncertain and changing world, the insurance industry is facing more risks to consider and cover. Cyber-attacks have become more prominent in the last few months, with news of the high-profile attack on the NHS back in May 2017, and as this type of crime increases so does the threat to every individual and business in the UK.
Cyber insurance is one of the fastest growing types of insurance available. PWC estimates that annual gross written premiums are set to increase from around $2.5 billion today to reach $7.5 billion by 2020. And while there will be a growing need for this type of cover, many who have not been affected could be sceptical about their need for it.
It’s likely that terms like ‘new insurance’ and ‘growing threat’, and others which portray this area as new and essential may turn people off. The reality is that cyber risk has existed for many years and although the industry is providing new cover it needs to be positioned carefully.
Over-emphasising new trends which are prevalent in the media can be counter-productive. Education and fact-based research will help to highlight risks rather than articulating the issue in an alarmist manner.
Explain how easy it is to cancel the policy
Knowing that the policy can be cancelled during a fixed period after the transaction means that preliminary discussions will always be less fraught and stressful. According to one piece of research, sales conversations are 32% more likely to close when they highlight the cancellation policy as part of the discussion.
Highlight your approach to Service
Don’t give your customers, or potential customers, the impression that you sell them a policy and then abandon them. We recently wrote an article about the value of regular communication and how to support your customers throughout the policy term, not just when discussing renewals or new policies. A continuing dialogue with your customers shows that you want to make sure they are well protected and you are always there to help. As part of any new business discussion, make them aware of:
what documentation they will receive when they enter into the agreement
how regularly you will be in touch with them (outside the renewal dates)
where to go for help and advice on managing their risks
Use customer testimonials
Independent verification of the service and support that you and the insurer provide go a long way towards promoting trust in discussions. If you have a proven track record of helping customers find the right policy, which is both good value and adequately covers their risks, then tell people about it. Your customer testimonials carry huge weight and demonstrate how much you care about client satisfaction. Testimonials build trust and aren’t sales orientated.
Make time to speak to your existing customers about the service you’ve provided, and make their testimonials widely available to show the number and range of happy customers you’ve protected over the years.
Address their concerns quickly
Pay close attention to your customers’ questions and their tone of voice. If a specific element is causing concern, take the time to find more information to allay their fears. The longer an area of concern goes unaddressed, the more likely it is that the customer will not take out a policy, and this could be detrimental to them as well as a bad outcome for you.
All examples provided by Premium Credit Limited are for illustrative purposes only and not to be considered as advice or relied upon by you, your employees or agents. Premium Credit Limited accepts no liability for the content provided. You should consult your own advisors for all advice on your regulatory and legal requirements.
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17 August 2017