Thriving together in a new (insurance) world order
The COVID-19 pandemic is revolutionizing how the world conducts business. The insurance industry is no exception.
Social distancing and remote working have put traditional forms of in-person networking on hold for the foreseeable future. As a result, agents and brokers are seeking new ways to foster client relationships and grow their books of business. Fortunately, the agent and broker community is not alone, and some carriers are committed to helping their distribution partners navigate the road ahead.
Furthermore, agents and brokers are striving to protect their clients during these unprecedented times. Partnering with your carrier to look for innovative ways to connect and expand your client relationships is an avenue for new growth.
Leverage opportunities to cross-sell.
While home sales might have slowed down as a result of the pandemic, agents and brokers still have a unique opportunity to build up their books of business with existing clients through cross-sell strategies that ensure they have the right coverage in place, especially since they may not fully appreciate or understand how their exposures may have changed.
One key area to focus on is flood insurance. Over the last few years, more frequent and intense storms have extended damage farther inland, reinforcing that few homeowners are truly immune to flooding risks and that everyone needs adequate insurance protection. With hurricane season at hand, and since a homeowners insurance policies do not typically cover flooding, carriers, agents and brokers need to help their clients better understand their true flood risk.
For example, some clients might benefit from primary or excess policies that have higher limits than those offered by the National Flood Insurance Program. In addition, clients might find value in policies that offer replacement costs coverage on their homes, and policies that offer coverage for additional living expenses if clients need to temporarily relocate after a flood. The last thing any client needs to deal with is a weather-related catastrophe during a pandemic.
Another area often overlooked is clients’ vulnerability to cyberattacks. Clients need to be aware of and properly prepared for cyber exposures. Because of the pandemic, more people are working — and shopping — from home. But as e-commerce and online networking have skyrocketed, so has cybercrime. In fact, Engadget recently reported that the FBI has found a fourfold increase in cybercrime during the COVID-19 outbreak, making personal cybersecurity more important than ever.
This changing environment offers agents and brokers an opportunity to connect with existing clients to ensure that they have the right cyber coverage in place. Cyber coverage added to a homeowner’s policy can help protect the insured in the event of cyber disruption, extortion and ransomware, breach of privacy, financial loss, and even cyberbullying. Fortunately, such cyber policies are often relatively inexpensive and there are a range of coverage limits to choose from. In the event of a cyber breach, the policy premiums will likely be significantly less than the potential financial loss, which can include legal defense costs and reputation management needs. Most importantly, these policies often give clients access to security consultants who provide real-time help in resolving a ransomware attack or cleaning-up their identity after fraudulent activity.
Be authentic and empathetic in person — and online.
In 2019, Chubb’s “Winning the New Client Journey“ survey found that many individuals were looking into their insurance options online. In fact, more than half (53%) of consumers reported having shopped online for homeowners insurance in the past 12 months, and 61% said they were likely to do so in the future.
In the wake of the COVID-19 pandemic — and as we’ve seen with other industries — we can only expect the number of online insurance buyers to increase. With so many consumers fundamentally changing their purchasing journey, this presents an opportunity for agents and brokers to become client counselors, as clients still need expert advice on the best risk solutions to meet their unique needs.
One way to effectively provide this counsel, based on results of a recent Chubb analysis, is to engage them, online and in person, by using clear and concise language that resonates with them. For example, emphasizing clients’ achievements rather than their socio-economic status may be helpful. Terms such as “high-net-worth” in reference to an individual or family may be perceived as being too exclusive, while terms like “accomplished” or “successful” are understood as more relatable, according to that same 2019 Chubb client journey survey. In addition, this survey found that 63% and 73% of successful individuals, respectively, reported that they have browsed or plan to browse homeowner’s insurance online. Within this market segment, highlight the everyday investments these clients and prospects have made in their home, such as upgraded appliances and custom cabinetry, flooring or carpentry that they’d want to make sure are properly repaired or replaced in the event of a loss.
Though these examples might seem like minor tweaks, using the right language with clear and concise descriptions of coverage options can help agents and brokers strengthen client relationships and thrive in an increasingly digital economy with limited in-person interaction.
Showcase expertise to other trusted advisors.
Continuing education is a great way for agents and brokers to brush up on various market and risk trends. In many cases, insurance carriers offer webinars and other standalone online courses on a variety of topics, such as those focused on preventing water damage and natural catastrophe awareness as well as digital marketing and cross-selling, that can be completed in just a few hours.
Armed with knowledge from these sessions, agents and brokers will be better positioned to add value to their networks of financial advisors, real estate brokers and builders, and accountants whose shared clients can benefit from additional insurance expertise. Building relationships now, while everyone navigates the uncertainties of COVID-19, can yield long-term client referrals in both directions. Since clients often seek holistic wealth protection, working together with these advisors to safeguard a client’s range of assets is an effective way to showcase value.
Help clients to find certainty in an uncertain world.
Pandemic or not, carriers like Chubb will always strive to ensure that agents and brokers have the resources they need to ensure their clients can obtain the protection they need. Whether it is through finding opportunities to cross-sell, learning to thrive in a remote world or leveraging continuing education classes to build relationships with other trusted advisors, our commitment remains the same — we will be here to deliver knowledge and needed solutions to our shared clients as we adapt and thrive in this changing environment.
Ana Robic is chief operating officer at Chubb Personal Risk Services. She can be contacted at arobic@chubb.com. These opinions are the author’s own.
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