Whether it’s the pandemic, civil unrest, economic uncertainty, or extreme weather, insurance clients have been dealing with an unprecedented volume of issues over the past year. As such, their policies have become less about a “grudge” purchase and more about providing genuine peace of mind for when they might need it the most – and brokers need to pivot their approach, accordingly.
Chubb recently surveyed more than 600 individuals across the US and Canada. Eighty per cent (80%) of those surveyed agreed that current events in the world have impacted their feelings about risk and that they are more aware of risks compared to the previous two years.
As such, agents and brokers need to pivot their approach to communication and help restore clients’ faith in their financial health.
“In this new environment clients are really looking to insurance as part of their overall financial wellbeing, not just as a transaction,” said Mary Parsons (pictured), the EVP of sales and distribution for Chubb North America Personal Risk Services. “They’re seeing insurance as a way to create stability for the future.”
Connecting with clients by asking holistic risk management questions and understanding emotional attachments to assets helps build trust and a lasting relationship. “Agents and brokers have a great opportunity to really differentiate themselves by using emotion-based selling,” she said.
Asking questions that help understand a client’s motivation for buying a policy not only establishes a deeper emotional connection, but it also helps agents and brokers better advise clients about their potential exposures and concerns through transparent interactions. The future of relationships with clients is moving towards more of an advisory role and less of a transactional role.
Chubb’s research showed that 73% of those surveyed want expert, personally tailored options; 70% want guidance on the best products and services; and 83% agreed that their insurance agent could provide service beyond their expectations by explaining how they can protect themselves from different risks.
“Clients are really looking for much more assistance on how to best protect their assets,” Parsons explained. Meaningful engagement helps brokers and agents provide the best solution available in the marketplace and helps with client retention.
In the old paradigm of insurance, client conversations were focused on products, carriers, and pricing. However, “in this new world, clients have much more of a heightened awareness of the risks they face and are looking for insurance in the context of overall financial wellbeing in a world that’s become much more unstable and precarious,” said Parsons.
