Negotiation tools for independent insurance agents
Independent insurance agents always have to negotiate. You negotiate the best policies and rates for the client, you negotiate with investors, vendors, and you negotiate with new hires. Negotiation is a skill – one that you must learn, practice, and perfect. If you want to stay competitive, negotiation skills are essential tools for independent agents, and if you do it right, the outcome should be a win-win.
The first step to negotiation is preparation
Client negotiations about the best policy will require you to get to know your client. When a client is interested in purchasing insurance, take the time to get to know that client before you start listing off your policies. You need to fully understand the interest of your client before you can provide them with solutions.
Avoid talking about price too soon
Price is ultimately going to be important, but you don’t want to bring it up too soon. You want to talk (or negotiate) the type of coverage that is going to be relevant for the client. Do they have a family, work from home, have a pool, a car, health issues, etc.? Then reassure them that you are going to help them find a policy that will protect everything.
In the beginning, it’s just a conversation where you get to know your clients needs before you even start to negotiate. The longer you can keep the conversation going, the better your rapport is going to be when you have to negotiate the final policy and the price. We don’t mean you stall the conversation but take your time getting as much information as you can before you begin negotiating.
The best negotiation is where everybody wins
Once you have to present a few policy options for your client and begin talking about price, the negotiation shouldn’t be about getting as much money out of your client as possible; it should be about the two of you working together to find a solution where everybody wins.
It’s understandable for your client to be on a budget; not everyone can afford the best, most expensive policy with all the add-ons. When you’re negotiating, use what you know about your client to guide them in the right direction. Build trust by letting them know that you aren’t pointing to a more expensive policy to make more money, but because you think it’s the best policy for their situation and where they are in their lives.
Always put the interest of the client first, and you’ll have much greater success at negotiating a great deal for both of you.
Independent insurance agents in Colorado, Arizona, and Utah
Affordable American Insurance has a fast-growing network of independent agents in Colorado, Arizona, and Utah. We work together to maximize our potential and grow our businesses. AAI provides training, seminars, and courses on how to succeed as an independent insurance agent.
With AAI, you are independent but never alone!