What if a Client Wants to Cancel a Policy?
Managing Policy Cancellations
Whether you’ve been an independent insurance agent for years or you’re new to it, one thing you can be sure of; at some point, you will have a client that will decide to cancel their insurance coverage.
It’s not personal. It’s just that your client’s situation can change over time. It’s the nature of the business, and when that happens, their insurance needs will most likely change too. Now, that doesn’t mean that any time something changes a cancellation is in order. When this happens, digging deeper is the best approach.
Common Reasons for Cancellation
As you sit down with your client to discuss their decision, you’ll come to find out the root of the problem. These are some of the most common reasons for clients to want to cancel their coverage:
Variation in Assets
If they are selling a property, upsizing a residence or maybe downsizing their business, they might consider going the cancellation route but unless they are selling their property or entirely shutting down their business, what they need is to update their policy.
Moving out or moving their business to a different location may affect their insurance but dropping their coverage for a while to pick up a new one later could put them even more at risk.
Recent Changes in Costs
When premiums increase, clients get concerned, but you can always assess them and help them find a better price with that same company, or maybe with a different one.
Unfulfilling Customer Service
Dissatisfied customers are rarely interested in being loyal. When it comes to customer service, make sure you don’t drop the ball.
Before You Let Them Go
As an independent insurance agent, you must always offer your clients good advice. Be sure to let them know of all the implications and consequences of canceling their coverage.
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