3 Key Ways To Build Trust With Your Policyholders

How can agents build trust with their insureds? The answer could be as simple as this: follow through on the promises you make.

But is it really so simple? Or could we drill down a bit? Here are 3 specific ways you can strengthen your relationship with customers and keep their business on your book for a long time to come.

1. Take time to demonstrate the value of the coverage.

Many policyholders don't stop to consider value; they simply pick the coverage that makes the lowest out-of-pocket impact. Customers have always been price conscious, but the proliferation of consumer-direct and cut-rate carriers over the last decade has made low-cost, low-coverage insurance seem like the market norm. And the slow recovery from the Great Recession hasn't helped matters.

Try using graphs or infographics to demonstrate comparative value across products during your sales presentation.

2. Make sure your customers' understanding of their coverage is crystal clear before they sign the bottom line.

It's easy to forget that some people need a bit more hand-holding and explanation than others to garner a full understanding of what they're purchasing. But if a customer doesn't totally comprehend the boundaries of his or her coverage, misunderstandings can arise at first notice of loss.

When discussing policy provisions with your clients, ask questions that allow them, in their own words, to explain what they believe they are covered for. You may be able to iron out differences in perception before they turn into claim-time kerfuffles.

3. Don't be afraid to talk about your experiences with various carriers. 

Allow the customer to consider service record, reliability and claims expertise as part of the value proposition. A carrier may offer a low-priced policy with what looks, on paper, like a great value. But is it responsive to customers' (and agents') questions? How does it conduct itself when a claim occurs? Does it give the customer choices for claims resolution — allowing the insured to pick who will make a repair, how the damaged item will be repaired, etc.? Does the carrier have in-house claims adjusters who are particularly knowledgeable about repairing the asset that is being insured, or does it outsource the majority of its claims to third-party adjusters who might not understand some of the nuances of repairing or replacing that asset? 

Talk with your customer about your own experiences with that carrier. When you have placed coverage with it in the past, how did its performance hold up during the claims process? Have your other customers shared positive or negative experiences with you? Regardless of the on-paper value proposition, based on your experience, would you place your own family's business with it? 

Satisfied customers are loyal customers. Relieved customers are lifetime customers. 

We believe that view to be true — true enough that we thought we should share it. We also thought we should share with you this Louisiana family's story. 

When fire destroyed the Tomeny family's home last year, they were left with nothing. They needed help — fast. Their claims adjuster did everything he could to make sure they could get back on their feet and start rebuilding as quickly as possible. 

Quick action, a sympathetic ear and transparency in the claims process turned this family from frightened customers into lifelong customers. 

Follow the steps above and keep the Tomenys' story in mind, and you'll build the long-term trust with your clients that can keep your agency going for years to come.

Written by Jim Stack