Your client is worried about rising insurance premiums. How can you ease their financial burden?

Rising insurance premiums can place a significant financial burden on individuals and families, making it essential to explore strategies to mitigate these costs. Understanding how to navigate and manage insurance expenses effectively can lead to substantial savings. Need Analysis: Consumers should assess their insurance needs while taking help of the insurance advisors or online tools. Then taking into account current coverage, identify any unnecessary or excessive coverage that they are buying which will help in reducing the premiums. Having said this, the most important thing while easing the financial burden of rising insurance premiums is not to compromise on the required insurance cover amount.

Remember that "assessing your needs" means having sufficient funds to cover certain repairs when you start paring down coverage.

There are always strategies you can employ to ease the burden and help your customer to find a more manageable solution, and it all start assessing if they are over-insured in certain areas or paying for additional coverage they might not need.

This is quite easily the best option you might have to save, and it may come with additional benefits like Single Loss Deductible waivers which reduce your out of pocket if something like a hail storm hits your house and your car. When shopping, shop BOTH. You'll get sticker shock on your untouched policy... and some insurers may not even consider your risk at all.

Many insurers are forcing their insured's hand and increasing deductibles at renewal. In Oklahoma where I'm from, you can see a mandatory 2% wind/hail deductible frequently, with some insurers going higher relative to how old your roof is. While this may save your premium dollars, you might want to look for an independent agent who can provide you a "wind-hail deductible buyback" policy which will reimburse the difference between your current wind/hail deductible and your desired deductible. This can save you a serious financial hardship during storm season!

From my experience, making sure that the client understands the trade-off between higher deductibles and lower premiums is a very powerful tool for leasing the burdens. So always discuss the possibility of raising their deductible (from $500 to $1,000 for example) to lower their monthly premium.

Inquire About Discounts: Many insurance companies, especially in general insurance, offer various discounts based on factors like claim history, health records, loyalty, and more. These discounts are not always automatically applied, so it’s important for consumers to proactively ask about them.

If the company offers discounts attached to the experience, perfect. If not, I personally don't like asking for discounts. Why? Well, if you are a broker, you might unintentionally imply that your service or expertise is less valuable than the standard price. And as a company, they set their prices for a reason, and is risk related.

One of the important roles of intermediaries is to help their clients constantly evaluate their isolated and bundled risk profiles. With this, they can better advise their clients to look at insurers offering competing products, and advise on the scope of coverage that can better suit their client's purpose. The rates differ for a reason, and the baseline needs for their risk coverage needs to be met and adequate. Price then comes in after that!

In the current economic instability and rising inflation, the value of assets and property may increase, causing the original insurance amounts to become insufficient, resulting in underinsurance. This means policyholders may not receive full compensation for their losses... so paying less is not always the right solution for customers! To reduce this risk: 1. Regularly review policies and update them to ensure that the insured amounts are sufficient 2. Consider inflation-indexed policies which automatically adjust for inflation. 3. Work with the customers to ensure that they have adequate coverage

Sit down with your client to review their current policies and identify areas where coverage may be more than necessary. Happens a lot in the health and life insurance sector. For example, maternity coverage/rider to individuals who are older to use the benefit.