Leaning into changing perceptions can grow your business

Due to the events of the past year, our lives, attitudes and behaviors have been forever altered.

We’ve all become more dependent on technology as so much of our work, free time and socialization has transitioned online. With this, we’ve seen an increasing number of individuals adopt new technologies and look to incorporate smart devices into their homes and daily lives.

An increased awareness of risk also developed in the past year. This awareness was largely related to our own health along with that of our friends and family members. But many individuals also became more aware of the way emotion factors into financial decisions.

Specifically, Chubb’s latest survey of insurance consumers found that 70% of individuals feel their risks have increased in the past two years, 69% say that fear has impacted their perception of risk, and 65% say emotions are influencing their financial decisions.

In light of these recent changes, insurance agents and brokers have an opportunity to show understanding and empathy in order to ease client fears and at the same time improve business prospects.

Leveraging technology as a new business frontier

Understanding that technological adoption is increasing, insurance agents and brokers should seize this opportunity to advise clients on the best systems and capabilities for their unique needs with regards to security, convenience and loss prevention. Recommendations may include installing connected home solutions, security monitoring and alarms along with temperature, smoke, water or heat sensors.

While most of these tools will garner an insurance premium credit for homeowners, educating clients on which smart capabilities are relevant to them and then collaborating to customize their integration can help agents demonstrate value and strengthen relationships.

Tech — through social media — can also function as a connection point for agents and brokers with their clients. Engaging with clients consistently on social media by sharing helpful risk mitigation-related insights or meaningful solutions can provide a supplemental touchpoint to other forms of email or one-on-one communication.

Taking advantage of timely hooks to share tips around preparation for an impending storm, how to minimize damage, or how to report claims after the fact. Such outreach can provide great value your clients.

In addition to any of your own insights, be sure to check with your preferred carrier to see if the company might have co-brandable content that you can share. In doing so, you will find that not only can social media help strengthen existing connections, it can open the door to new business opportunities.

What clients want: A new paradigm

From an insurance perspective, the changes of the past year meant that client needs remained the same but the context is different. Individuals still need insurance. In the current context of financial wellbeing and stability, however, insureds now grapple with greater fears and uncertainty.

Consider natural catastrophes: Hurricanes and flooding used to be a phenomenon limited to select coastal areas. However, 2020 brought more named storms than ever before along with increased flooding risk in inland areas that hadn’t previously been affected by named storms.

Similarly, hail activity continues to blight many parts of the nation, with 4,611 major hailstorms in the U.S. in 2020 alone. What’s more, the Insurance Information Institute has projected that the 2021 wildfire season will be severe. And with many western states experiencing drought conditions, wildfires will likely spread into the east and central states, according to the Congressional Research Service. That means many homeowners who hadn’t previously planned for flood, hail and/or wildfire risks, now must do just that.

In light of these growing risks, now is the time for agents and brokers to help their clients re-evaluate the adequacy of their coverage, particularly in relation to potential damage and replacement costs. The impact of inflation on the cost of building products such as lumber, steel and copper has also driven additional need for agents and brokers to review the adequacy of limits and further help inform clients around valuations.

Overall, the most successful agents are positioning insurance as a safe haven and an act of personal responsibility to oneself and their family. This way, they are adding a layer of emotional connection to an otherwise pragmatic financial argument. They are leaning into the emotional aspect of purchasing decisions.

Growing your book

By taking this two-pronged approach of advising on tech integration and leaning into shifting perceptions around risk, agents can cater to the evolving mindset of their clients and therefore differentiate themselves from peers. When done authentically, they will win client trust. This will brings loyalty and a willingness to provide referrals to their friends and family, thus helping to further expand their business.

Overall, in a time of constant change, fulfilling the desire for strong, genuine connections, hands-on service and a tailored approach can open a door to abundant growth opportunities.

Ana Robic (arobic@chubb.com) is chief operating officer at Chubb Personal Risk Services. These opinions are her own.