C130 Chapter 2 Essential Skills for the Insurance Broker and Agent

C130 - STUDY 2 - Broker Skills – An Overview / Page 1

In a world of interruptions, interpersonal and organizational skills are paramount.

Customer Service

1. Common elements > accuracy / clarity / courtesy / professionalism / timeliness.
2. Adapt > client attitudes / expectations / mindsets / temperaments.
3. Balance needs > client (cover) and insurer (portfolio development).

Communication    Translate thoughts, opinions and ideas for others to understand.

1. Verbal Delivery:        1) Body language / delivery / tone.

2) Professional = pleasant and effective.

2. Active Listening:        1) Listening / interpreting / processing non-verbal clues.

2) Questioning and rephrasing parts you don’t understand.

3) Confirming you absorbed the information correctly.

+ Illustrates > value and respect for others even if you disagree.

+ Creates Trust > increases willingness to offer / share information.

+ Builds Rapport > common ground built by asking questions.

3. Knowledge > apparent in all forms of communciation, tailor to clientbackground / experience.
4. Clear Communication > understanding client expectations of price / product / service.

IN PERSON

1. Matching        Assuming some of body positions and/or posturing.
2. Mirroring        Similar actions are performed.
3. Match Style        Formal / informal, plain language, look for clues to understanding.

TELEPHONE

1. Challenge > no visual cues = reliance on rate of speech / tone / vocabulary.
2. Active listening assists/ verify understanding
3. Warning Signs > awkward silence / long pauses / client speaks quickly to gloss over.
4. Patience > explain need for data / give client time to think, formulate answer / rephrase.

1) Cultivate phone manners:

1. Greeting > courteous, non-confrontational / professional / welcoming.
2. Identity > ID self clearly ask for their name – correct spelling.
3. Adjust Style > match language / rate of speech / tone.
4. Active Listening > let speaker think, then respond by asking questions to verify data.
5. Smile > favourable response = comfort in dealing with you.

2) Observe telephone etiquette:

1. Prepare > calculator / files / forms / paper / pen or pencil.
2. Limit Interruptions > if more time needed, take only brief pauses.
3. Focus > individual client may need more help / set call goal – dicuss / meet / sell.
4. Practice > create checklist / make notes / rehearse presentation and ideas.
5. End Call > with summary of discussion and action to be taken on behalf of the client.

3) Document your discussion:

1. Record > all details, sign and date for chronological order.
2. Follow Up > copies of notes to relevant files.

4) Honour your commitments:    The client is legally entitled to your services:

1. Take appropriate action.
2. Keep Client Informed > delays / updates on progress.
3. Unable to Fulfill > advise client immediately / offer alternatives.

5) Professional phone messages:

1. Concise / Detailed / Professional.
2. Full name / contact numbers or email address / purpose of call.
3. Keep it short and to the point.
4. Balance Detail With Discretion > confidential information and privacy legislation.
5. Never bind over voicemail.

IN WRITING

1. Permanent documentation of business records.
2. Memorandum > email / fax / mail / formal letter.
3. Match Audience > technical level / tone.
4. Achieve Objective > clearly communicated and understood by you and your reader.
5. Effective Letter Writing:
1. Avoid cliches and metaphors heard or used many times before.
2. Avoid foreign phrases, scientific words, insurance acronyms and technical jargon.
3. Use short words where they can replace long words.
4. Delete unnecessary words.
5. Use active (John bought), not passive (was bought by Judy) voice.

6. Email:    1) Immediate, more conversation than correspondence.

2) Proofread (grammar / spell check) before sending to avoid embarassment.

3) Fast and convenient way to confirm arrangements / details.

4) Subject line should match content of the message.

5) Clear and succinct > exact details of subject matter.

6) Keep short > divide longer messages in to paragraphs.

7) Document > keep date-filed hard copies for your own records.

Handling Difficult Situations         Remain clam, clarify positions, stay focused.

1) Delivering bad news:

1. Reactions > differ with the individual – concerns = opportunity / silence = lost business.
2. UW decisions > elaborate or clarify, spend time explaining the insurer’s perspective.
3. Don’t Take It Personally > stay professional and focus on the issues.
4. Appreciate Feelings > emotions run high / time needed to resolve / treat with respect.
5. Sympathy > relating in a caring way + feeling sorry and sharing the feeling of loss.
6. Empathy > rational sensing / responding to emotions and feelings without agreeing.

RESPOND TO INDIVIDUAL CLIENT REACTIONS:

1. Help the client work through their emotions.
2. Show compassion for the difficulty, avoid dwelling on it.
3. ID questions or concerns / offer solutions.
4. Stress positives / tactfully and diplomatically guide to acceptable resolution.

2) Complaint resolution:    Valuable opportunity to communicate, learn = improved practices.

1. Listen Positively > avoid criticism / look for insights and new perspectives.
2. Be Objective > listen + ask questions + seek to understand = resolution or improvement.
3. Avoid Assumptions > avoid labeling client as “difficult” or “difficult to deal with”.
4. Express Regret > apologize if appropriate / avoid accepting blame / don’t highlight error.
5. Focus on Solution > client wants v. fair solution for insurer and client.
6. Follow Up > advise if other sources required and keep client informed of any progress.
7. Reach Understanding > negotiate – propose, let client modify until mutually acceptable.
8. Improve practices > can change business for the better, need to change?
9. Thank Client > opportunity to help / their initiative / chance to improve business.

Sales

1. Sell > products, services to clients / clients to insurers if non-standard risks.
2. Needs Analysis > listen / ID needs  / recommend a solution that matches their needs.
3. UW Guidelines > personal lines automobile and property v. commercial and business lines.

1) Sales Planning:        Develop strategic goals and plans for products, markets, operations.

1. Basis > strengths and weaknesses of individual brokers + types of business sold.
2. Insurer Preferences > appraoch with preferred risks / business lines / services.
3. Forecast > sales objectives as business amount written per target line / type of business.
4. Review > daily / weekly / monthly / quarterly.
5. Manager > implements / assists / monitors / adapts.
6. Broker > achieves goals using own sales plan to approach segment of target market.

TARGET MARKETS    Source of potential clients:

1. Segmented > age / business pursuits / coverage required / personal interests.
2. Lead > member of group of potential clients fitting profile as target market.
3. Insurance Markets > insurer(s) for whom the broker writes business.
4. Market Familiarity – target market(s) / UW practices / wordings.
5. Match Clients and Insurers > UW rules / coverages / structures / willing to insure.
6. Doubts > email or telephone insurer’s UW department = greater efficiency.
7. Non-Standard Business > alternate markets for unusual covers / high risks.
8. Wholesale Brokers > ID unique client needs / negotiate coverages with insurers.

QUALIFYING THE CLIENT    Solicit information:

1. Create Profile > name / address / phone / email / fax / family data / interests, hobbies.
2. Marketing > how they heard about you – magazine / newspaper / flyer / friend.
3. Objectives > quoting for – price (tire-kickers) / service comparison (serious interest).
4. Fit Target Niche > profile + exposures to risk + insurer products/services meet needs.

2) Selling:        Process of meeting client needs with products and services.

1. Knowing > research client / competition / insurers / market / policies / services.
2. Comparing > insurers and the products they offer.

PROCESS    1) Ask > open-ended questions to uncover exposures and needs.

        2) Match > needs with satisfiers (policy elements) in insurer’s products.

        3) Close > questions that lead to accepting your product.

WAYS TO SELL    Methods best suited to reaching your target market:

    1) Referrals        a) Effective > majority of business results from them.

                b) Prequalified > from same target segment as existing clients.

                c) Introduced > services and products already known.

d) High success rates in writing the account.

    2) Advertising        a) Generate Interest > choice of media / response mechanism.

                b) Invitation > call, email, fax or visit.

                c) Limited success rate in writing the account

    3) Walk-ins        a) Office > drop in to check you out.

                b) Common > government insurance provinces.

                c) Opportunity > arrange insurance for other needs.

                d) Limited success rate in writing the account.

    4) Cold Calling        a) Contact > person you do not know. (low success rate)

                b) Introduce > self / brokerage / products / services.

                c) Practice > approach and interpersonal skills.

d) Research > client / needs / business.

                e) Goal > get expiry dates for future contact.

                f) Document > date / contact / data / results.

                g) Follow Up > letter / phone call to further promote.

TRACKING EXPIRY (X) DATES    Forms a database of prospective customers.

1. Timing > contact 60 days before expiry date to offer services / quote.
2. Opportunity > offer quotes for other products if client interested.
3. Document > reasons for unsuccessful results – dissatisfied client / price.
4. Approach > vary with multiple contacts.

UP-SELLING        Selling an upgraded version of an existing or new policy.

1. Improves > coverage / terms / limits.
2. Client > understands peace of mind is worth the added premium.
3. Goals > client has adequate limits and proper coverage / avoid E&O claims.

CROSS-SELLING    Selling new products to new or existing customers.

1. ID Needs > auto = other exposures – health / life / property / umbrella.
2. Respond to Changing Needs > address change = tenants coverage.

COUNTERING SALES OPPOSITION    Convince client to share reasons why.

1. Dealing with objections:            a) Listen > to whole objection.

b) Understand > what objection is to.

c) Respond > thoughtful / interested / answer facts.

d) Adapt > facts and ideas to each objection.

e) Keep Them Talking > productive discussion.

2. Turning doubt into productivity:            a) Work With Reasons > nature and results.

b) Objective Proof > have it and offer it.

c) Open-ended ? > reveal reasons for doubt.

d) Practice > question bank and responses.

3. Addressing lack of interest:   

a) Misunderstanding > premium too high – why?

b) Compare > quoting same products / services.

c) Highlight > enhanced coverages / services.

d) Delay (bad timing) > Why? – offer solutions (call back).

e) Commitment > ready to decide at later date, or at least follow up contact?

f) Focus On > relationships / listening / respecting / thoughtful answers.

Workflow Management    Critical elements of effective and efficient agency/brokerage operations.

A) Time Management    Makes workflow easier to handle:

1. Organize Work Area > supplies close at hand / colour code materials or files.
2. Agenda Updated > scheduling and time planning information in one place.
3. Goals > identify and prioritize them.
4. Jobs > break down into constituent parts / sort / prioritize early in the day.
5. To-do Lists > proactive not reactive / plan time recognizing you may have interruptions.
6. Activity Lists > new business prospecting / renewals / endorsements / next actions.
7. Research > doing before client contact = effective use of time.
8. In-Basket > empty it daily.
9. Interruptions > find ways to reduce or eliminate unwanted ones – close your office door.
10. Paper Handling > handle paper or files once per task.

B) File Management            Handling, easily accessing incoming/outgoing information:

1. Documentation > record and file all activity (paper and system) chronologically.
2. Identification > all documents have client name / policy number / agent ID.
3. Standardized File Protocols > legible and easy-to-follow notes.
4. Legal Evidence > record all conversations – date / time / person / what was said.

ABEYANCE SYSTEMS        Avoid service problems that lead to disputes with clients.

1. Abeyance > temporary inactivity until date review or action required.
2. Methods > PC / wall calendar / weekly planner.
3. Timeframes > reasonable / realistic = urgency of response (data v. expiry).
4. Reasons        1) Follow Up > with prospect on new business quote.

2) X-dates > opportunity to quote new business.

3) Information > finish application (insd) / transactions (insurer).

4) Binder Issued > policy / endorsement to be issued by insurer.

5) File Review > before renewal date.

6) Cancellation > request from insurer.

7) Termination / Non-Renewal > advise insured.

MAINTAINING CLIENT FILES    Company standard = time to keep and how they are kept.

    Prescription – in law , is a time after which a cause of action ceases. In insurance, this is the time after which a claim may not be brought

1. Legislation > management sets procedures to comply with provincial statute.
2. Liability Policies > long-tail exposure (occurrence basis) = permanent retention.
3. Other Documents > appraisals / correspondence / memos / notes / claims / home evaluation guides /records
4. Privacy        1) Information > only released with client’s written permission.

2) Application > client signs permitting insurer to get information.

3) Court Order > information released with or without permission.

4) Security > safe storage / retrieval / destruction = protection.

5) Client Notice > give notice describing practices.

C) Policy Delivery        Policy is legally enforceable contract with the client.

1. Accuracy > confirm correct details / coverage requested / limits / deductibles.
2. Coverage Summary Sheet / cover letter.
3. Formality, remain professional – convey all information that the client will need and document your file
4. Encourage client to review the documents carefully – their responsibility