Commercial Insurance Rates are Rising. Here’s Why

No one wants to pay more for insurance, but it is our unfortunate reality. Commercial insurance rates are rising, meaning higher premiums across the board for many businesses. Coverage affected ranges from Business Owner’s Policy to Worker’s Compensation. It is projected that prices will continue to rise throughout the rest of 2019. From underwriting to pricing, these changes come from two major sources: cars and catastrophes.

Vehicles

Auto insurance aside, vehicles have become a major factor in the rise of our commercial insurance rates. You may think “why does this matter to me?” It matters because vehicles are our main source of transportation, influencing our economic structure deeply. Everything you have as a business owner is brought to you by some type of vehicle. With more production and vehicles on the road come more opportunities for accidents to occur. This involves more than just passenger cars.

With our economic boost, we see an increase in areas like construction. Motorized vehicles operate in these zones, causing more concern for insurance companies. More work means more workers are needed to operate these vehicles. It only leads to an upward climb in insurance rates.

There is no easy solution for the car aspect contributing to this climb. We can only wait for legislation to step in.

Catastrophes

We’ve recently experienced a lot of natural disasters. In November 2018, California was ravaged by wildfires. While it is accustomed to fires, these were the worst in years, affecting areas as far north as San Francisco, and areas as richly populated as Malibu. The Woolsey Fire destroyed over 1600 structures (including most of Paradise, CA) and caused the death of three individuals.

Besides fires, hurricanes are a force to be reckoned with annually. In 2017, Texas’ southeastern area, including Houston’s almost 6 million people, were decimated by Harvey. This storm solely caused $125 billion worth of damage. Not to mention the opioid epidemic, which is heavily affecting our medical industry with 60,000 people dying from it in 2016. All of these things only scratch the surface of the disasters our country is experiencing.

This is causing rates to climb between 1-5% for insurance deductibles depending on how close you are to at-risk areas. As people scramble to make sure they are covered more for potential disasters, insurance companies raise their rates. At the same time, claim payouts are in the billions of dollars, forcing the capital in insurance companies to deteriorate. It’s simple supply and demand affecting the market.

While it may not provide much comfort, the reality is that an increase in productivity added to the disaster influx is causing inflation for commercial insurance prices. While it’s mostly liability markets that are affected, the results can be felt by everyone.

Benepath Agent Success Series Webinar – Calling Like a Professional

How do your phone communication skills size up according to your clients? Closing sales for insurance agents on the phone is hard enough, but if your phone call delivery is lacking in even one aspect, your efforts could be . We at Benepath want to help ensure your phone calls are as effective as possible, for this reason we are thrilled to announce our first Agent Success Series Webinar.

In this 30 minute webinar hosted by Benepath President, Clelland Green, and Revity Sales Consulting Partner, Morgan Smith, we will coach you in effectively calling your consumer leads to make the most of every second on the phone with them. Clelland and Morgan get right to the point, coaching you topics including:

  • The importance of tone throughout your call
  • Effective messaging to guide a consumer into a sale
  • Proper contact etiquette

We also give you the ability to ask your specific questions to the professionals that will be answered at the end of the webinar!

Sign up here.

The beginners guide to leads

If you are at the beginning of your insurance sales career or a new employee looking for a review, here are some tips on obtaining leads.

Working with leads to sell insurance is as much about the product as it is about you. Remember that you are the most important factor in successfully getting leads. Of course there is no one way to obtain leads, every agent will have their own approach.

However, be sure to try many different ways to see what would work the best for your sales style. For instance, perhaps you would like to try cold leads, shared leads, leads from a certain area of the country only, leads in a defined age range or leads with small children.

Before calling leads, ask the following questions: How do I determine what my leads need, where do I buy the best leads? what to I ask for and how many leads do I ask for, how do I work the leads and how should I follow up?

After obtaining leads, regardless of what type of lead you choose to work with, the way to work them all is similar. It takes some personal and interpersonal skill building for an agent to be successful. When working with leads make sure to demonstrate the following:

  • Persistence
  • Diligence
  • Attention to detail
  • Knowledge of product
  • Patience
  • Humor and personality
  •  
    Once you get into the rhythm of working with leads and practice your interpersonal skills, you will find that the goal of locking down leads will become easier and more attainable.

    Generating Leads Using a Script, in Your Own Voice

    In the insurance sales industry, obtaining potential leads is only the initial step. To generate business for your agency you have to chose the best leads and call. That phone call will be what determines if you have gained new clients.

    The matter of choosing leads that work for you and your marketing program is strictly up to you. It all comes down to how you say and how you come off to those perspective leads. If you are knowledgeable, persuasive and attentive, you will have not problem in gaining new customers.

    However, before rushing to the phone to call leads, regardless of how experienced you are, take the time to write a script. It is important for you to sound approachable and comfortable when contacting leads. After all nothing puts people off like a canned, awkward script being read by an insurance agent. Use your own words. Remember you are marketing not just a product, but yourself.

    When contacting leads, it is all about good customer service. On the one hand, having a planned script will help you guide the conversation towards that conversion. On the other hand, you need to be able to think fast and provide knowledgeable responses to impromptu questions.

     

     

    While people know they need insurance, many are reluctant to make that purchase. If the lead feels pushed you may lose them. Therefore, it is important for you to be conversational and ask them what concerns them the most and what questions to they have. Put the person at ease. Learn about them before you slide into your sales pitch.

    Lead Your Way to Success Selling Insurance

    Successful insurance sales lead to growth in your agency. What you will chose to do to obtain these sales will dictate how successful you and your company will be. To maximize your success be sure to employ marketing strategies.

    Having knowledge of how to drive traffic to your website, creating valuable and relevant information, and offering follow up, on all leads will ensure success for your agency. While this may sound like a handful, it is worth considering these strategies for increasing your exposure, which will lead to conversions.

    Drive traffic to your website
    If your website does not capture the attention of its visitors, you will likely never see them again. To successfully obtain the attention from your online visitors be able to provide useful information in exchange for contact information. For example, a set of bonus tips or an ebook are a one way to obtain contact information. Call-to-action buttons are another strategy you can employ.

    Create valuable and relevant content
    Compelling content is key for generating leads. Through well written information on your website will allow you to present your agency as the go-to in your industry. Well written, factual and informative content will generate traffic to your website, increasing the rates of conversion.

    Follow up
    After you have successfully gained the attention of your website visitors, make sure to follow up with them. Engaged website visitors are the leads that know they need are ready to buy from you, but have not contacted you yet.

    Certainly there are multiple marketing strategies out there. But, you do not need to and should not use more than two marketing strategies. Find the right marketing approach that works well for you. When you feel that you need a companion marketing strategy, add another one.

    Testimonials

    What Our Core Clients Say!

    Get Your Free Guide to Selling Exclusive Insurance Leads!

    Hey there, I’m Ben, your personal assistant. What brings you to Benepath’s website today?