MRL #091- How To Prepare Clients For An Ugly Renewal

I had to deliver a $150,000 increase to my biggest client this week.

Even though they’re a $70k revenue account, I know the extra $150,000 still stung.

But suprisingly they didn’t fire me.

Believe it or not, they were thrilled at the renewal.

Why?

Because I did a few things right.

No, this newsletter is not intended to be a bragging session.

Just the opposite, actually.

I’ve lost my share of cliets because of mishandling large increases at renewals.

This newsletter is about equipping you with the knowledge I didn’t have when I first started so that you don’t make the same mistakes I did.

So, let’s get started.

#1. Start Early

Sit down with insureds 150 days out for a “Pre-Renewal Strategy Meeting”.

In this meeting discuss 3 things:

1. Review their performance over the previous 6 months

2. Review your strategy for their upcoming renewal

3. Prep them for any anticipated changes

Early communication shows you’re proactive and allows them time to adjust their expectations and cash flow if needed.

#2. Update Them Constantly

This is the part where you might want to leave out certain details - especially, if they’re not good details.

“I don’t want to tell them the first quote back is 100% above expiring! They’ll get another agent involved!”

Resist!

Share the good, the bad, and the ugly with them.

Yes, they may bring in another agent out of desperation, but if you’re doing your job you have nothing to worry about.

Communicating honestly with them - even when it’s not in your favor - is a huge trust builder.

#3. Explain The Why

Whether it’s a premium increase, coverage reduction, or other change, always explain the reasons behind it.

Discuss market trends, underwriting factors, or claims history that may have influenced the bad news.

The more you can educate your client the better.

When they understand the why, bad news becomes much more palatable.

#4. Prepare Alternatives

Give them different options if possible.

This is where you can really flex your creativity and product knowledge.

Maybe higher deductibles, reducing certain limits, or other adjustments could help offset an ugly increase.

Being proactive demonstrates you’re a problem solver and looking out for their best interests.

Again, huge trust builder.

#5. Deliver Their Renewal ASAP

Yes, I know some times you can’t deliver the renewal until last minute.

But, if you can deliver it sooner, do it.

Put yourself in their shoes:

Would you like it if you were backed in to a corner with a massive increase and no time to form a Plan B?

One of the biggest complaints insureds have are last minute renewals.

So, do your job and get to market 120 days out.

In Closing…

We were able to hand our client this ugly renewal and not get fired because we did all of the above.

We were early, honest, proactive and over communicated.

The nail in the coffin was handing them a renewal $100k less than what they were expecting.

The best quote we had up until the last week was a $250k increase which we communicated with them.

Thankfully, somebody came in last minute with only a $150,000 increase.

So, when we walked in with the good news they were ecstatic.

#winning

Ok, enough about renewals.

If you’re looking for help on the fun stuff like prospecting and writing more new biz, that’s where our Producer Playbook comes in.

It’s our step-by-step guide to building a book from scratch.

Be warned, the price is tripling next month.

All the deets in here.

See you next Sunday.

Kick ass take names,

Maximus F. Revenue IV