How to Reduce Policy Cancellations

How to Reduce Policy Cancellations: Key Insights from My Recent Talk for Managers

During a recent training session for Managers, I had the opportunity to give a short speech on how to prevent our clients from cancelling their insurance policies. I believe there are several key aspects to managing this effectively.

First and foremost, we need to be both professional and likable. Part of being likable is presenting ourselves in a way that resonates with our clients. When meeting business clients, I opt for a suit, while for others, smart casual is more appropriate. The first impression is crucial, as it sets the tone for the entire interaction.

Another important aspect is to avoid jargon that our clients may not understand. We deal with financial matters, and it’s essential to explain them in a way that is easy for the client to understand. A smile also goes a long way. No matter how challenging our day is or what the weather looks like outside, for the time we spend with our clients, they are our focus. They’ve taken time out of their day to meet us, trusting us to secure their future and that of their loved ones.

We should also not treat clients as one-off encounters that we forget about after the meeting. Building relationships is key. Call your clients from time to time, ask how they’re doing. Often, shortly after a purchase, clients may experience buyer’s remorse. A follow-up call can help remind them why they chose their policy in the first place and clear up any concerns they may have.

As for being professional, continuous education and training are a must. Staying updated on regulations and compliance ensures that we are offering our clients the best possible solutions for their current needs. This is crucial because when the worst happens, our clients or their families will rely on the policy we offered them.

In summary, being an insurance agent is about being there for our clients when they need us most. We shouldn't see meetings as one-off "sales victories," but as opportunities to impact someone’s future. My own annual cancellation rate fluctuates between 0.3% and 3%, thanks to these approaches.