Combatting the Impact of Inflation on Your Agency

Inflation is at a record high. It’s affecting everyone, from everyday working Americans to businesses, and insurance agents are not immune to it. This is not only because customers are becoming more reluctant to invest in insurance policies, since they’re spending so much on everything else in their lives. It’s also because the cost of policies is actually increasing, since the rising cost of labor, supplies, and more is increasing the cost of claims. With customers unwilling to buy more expensive policies, what can you do to keep your business afloat?illustration of a piggy bank and inflation chart

Find Ways To Save

The best way to keep your business running is to take advantage of any discounts that might be available to you. You can find ways to cut down on marketing costs, operational costs, and more if you do some digging. For example, you can:

  • Opt for a marketing package, including giving social media a try as a free or inexpensive way to promote yourself.
  • Automate different aspects of your operations, such as underwriting, data processing, accounting, payments, and claims handling.
  • Outsource vital operations and services.

Network, Network, Network

The more you network and talk with other independent agents and brokers, the more ideas you can get on ways to save on the cost of doing business. Other agents in your area may have some ideas that can help you, so get out there and network away!

But What About Your Customers?illustration of men and women around a circle

Your customers are also feeling the pressure of inflation, especially as their premiums are increasing. But there are ways that you can help your customers during these tough times, such as:

  • Bundling – Bundled policies are generally cheaper than just one or two separate policies. If your customer has different carriers for their business, health, and home insurance, talk to them about moving the policies to one carrier. This way they can receive a bundling discount and save a little money on insurance and will be willing to purchase more.
  • Find Discounts- There might be discounts available to your customers that they, or even you, are unaware of. Your customers could qualify for some discounts on their health or business insurance, so take the time to do some deep diving into their policy and see if there’s a way that they can save money on their policies. Taking the time to do that is better than having customers cancel their policies, or even choose not to buy in the first place!
  • Exploring at Renewal Time- One of the best things that you can do for your customers is to shop around for different policies for them right before their renewal time. This will not only show that you care about them, and about helping them save money and find a better policy, but it will help provide them with the lowest rate possible.

Earn More With Benepath

During these tough times, finding good leads and converting them into customers can help you offset the rise in prices due to inflation. And there’s one way you can always find great, ready-to-buy leads: work with Benepath!

When you work with Benepath, receiving reliable, exclusive leads is the easy part. We provide you with real-time leads through a secured process and give you a customized thank-you page so your leads will be ready for your call. This thank-you page assures leads that they won’t be bounced around between agents and gives them a feeling of connection with you right from the start. We offer the leads, and, while it is up to you to properly nurture the leads, we are behind you every step of the way. You’ll find, though, that our leads don’t need much nurturing because they are ready to speak with you and buy your product! To get more information, fill out the form below or call 866-368-0377.

Co-written by Minerva Landon

Inflation & Agents: How To Prevent Inflation From Affecting Your Business

Inflation is on the rise, and the cost of everything from fuel to groceries is skyrocketing, making a lot of people feel overwhelmed. This includes your leads and customers, some of whom might even decide not to buy or renew their insurance, settle for a cheaper policy, or cancel their policy altogether when they see that the rates have gone up. They might feel hopeless, and you might worry about losing business, but remember, as an agent, there are always ways you can help people save money on insurance, and find an affordable plan. There are ways to put them at ease, as well as to keep inflation from dragging your business down.

cell phone with an incoming all on the screen
If you have been receiving calls from customers about their insurance rates going up, there are things you can do to help them save money.

The Dreaded Calls & How You Can Help

If you haven’t been experiencing it already, get ready: customers have been calling insurance agents left and right, asking why insurance rates have gone up. And their concern is understandable: in times like these, everyone is looking for ways to save a little money.

If you’ve already been receiving these calls, don’t panic! First, take a deep breath and sympathize with your customer- hey we’re all going through it, so let them know that you completely understand. Next, assure your customer that you will do your best to make sure they have a plan that works for them and that they can afford it. Once you’ve tried to calm their nerves, follow these steps:

  • Go through their account with a fine-tooth comb– Take a close look at your customer’s account and see exactly why their insurance rate has gone up. There could be a variety of reasons, such as if they have made a claim or if they had a discount at one point that is no longer available. Being able to explain exactly why things change often helps customers become more comfortable with their rates. While they still might not like it, having a reason is better than approaching them with ‘that’s just how it is these days.’
  • Examine every nook & cranny for discounts– Scroll through their account and see if there is any way you can find a discount for them- there might be one for being a loyal customer, making payments on time, or putting in little to no claims. application with a pen on the page
  • Look through their application- If you can’t find any discounts for their current plan, try to go through their application and update it. Things might have changed from when they first filled out the application – maybe for the better. Or their life situation might have changed, making it easier for them to qualify for subsidies or get a new plan. For example, they might have lost their job or had a qualifying life event, allowing you to look through all available options in their area and find a plan that provides them with what they need in their price range.
  • Bundle insurance– One way to help customers save money is by bundling their insurance. Yes, it might sound insane to try to offer them more insurance, but by bundling, they will end up saving money without having to sacrifice coverage. For example, check if you can bundle their health insurance plan with their home insurance or bundle multiple business insurance policies together. By bundling, customers can get discounts of up to 25% less than buying them from multiple companies.

Keeping Your Business Afloat

Your customers are probably not the only ones stressing out. If you’re worried about the fate of your business in these uncertain times, don’t panic. Even in this new normal, there are some things you can do to adjust and make sure your business continues to thrive:

  • Evaluate your loss ratios and carrier rate -The formula for determining your loss ratio is: (insurance claims paid + adjustment expenses) divided by total earned premiums. Evaluating this will help you determine how your business can save money and minimize profit-sharing risks that can hurt your business.
  • Negotiate contracts– If you have contracts with carriers, consider negotiating any fixed contingency deals you have, which can help reduce risk over the long term. Most companies are fairly receptive to negotiation and will consider changes at any point during a contract period if the negotiating agency has a good loss ratio and adequate premium volume.

    illustration of marketing techniques
    Stay on top of your marketing so you can attract new leads and customers so your business can stay afloat during these difficult times.
  • Step up your marketing– When all else fails, market your way to new customers, focusing on how your agency can help customers save money. These are trying times but business growth is still possible, and the best way to keep your business going.

And with every cloud comes a silver lining: the one upside to these tough times is that commission income will be increasing, which could help offset any decrease in income from the insurance company/companies you work with.

Prices continue to rise, leaving many to worry and look for every possible way to save money. And when your customers see their insurance rates shoot up, they will want to know why and what you can do to help them. But you can be ready for them, and find ways to keep their business, so you can continue to grow yours! Remember loyal customers are your best asset, and a free marketing tool. If you are able to help your customers and make them happy they are more likely to refer you to friends and family!

While you are waiting on those referrals, if you’re looking for new leads and want to grow your business, Benepath can help! We offer exclusive leads for clients who are ready to buy. Benepath will provide you with better tools, more guidance, unsurpassed sales training, and techniques from the most successful agents and trainers in the industry to help you stay on top of the latest industry trends. When you grow, we grow, so let us help you fight inflation panic and have the best sales year yet. To get more information, fill out the form above, or call 866-368-0377.

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