There is ample opportunity for agents and brokers to provide their highly successful clients with enhanced value that ensures sufficient protection. (Shutterstock)
The expectations of successful individuals and families are higher than ever before, especially when it comes to protecting their assets. With insurance, their sights are set on immediate claim services and complete protection.
Despite this, according to research conducted by Chubb and Oliver Wyman, 87% of successful families use standard carriers to cover their not-so-standard risks. Unfortunately, a standard approach to insurance can result in insufficient levels of coverage.
The good news, however, is that as we look ahead in this new decade, there is ample opportunity for agents and brokers to provide enhanced value to clients and ensure sufficient protection.
In many cases, the best place to start is with auto. Why? According to the most recent data from The U.S. Department of Transportation, people are driving 13,476 miles a year, which could take you from New York to Los Angeles and back, twice! This makes for plenty of miles for risks to present themselves.
What follows are a few auto-specific tips that agents and brokers can use to provide enhanced value to clients.
One size doesn't fit all
This old saying rings true, particularly when it comes to successful individuals and their auto coverage needs. In fact, a recent study by Chubb and the research firm maslansky + partners found that 40% of successful clients wish their current carrier offered higher coverage limits, and 83% would pay more in order to have the right coverage. For agents and brokers, providing value for successful clients starts with making sure their policy contains adequate coverage.
But flexibility goes far beyond coverage limits. It's up to agents and brokers to highlight what benefits will best meet their successful clients' needs — big or small. Take, for example, something that might seem relatively minor, like coverage for a temporary rental car after an accident. By confirming that your client's policy has high-enough rental coverage limits and no per-day restrictions, you can help ensure their rental is of the same quality and standard they're used to — "like-for-like" in insurance-speak. And what about the things you forget to think of? If a client's totaled vehicle is sent to a salvage or auction yard, which is standard industry practice, it could be headed there with personal information they've saved in their car's GPS or Bluetooth-enabled systems.
With certain premium auto policies like Chubb's, cutting-edge benefits such as coverage for the removal of personally identifiable information from the vehicle in the event of a total loss may be included — taking one more potential concern off of your clients' plates.
When it comes to accident-related repairs, arguably the biggest immediate concern, a customized policy means giving clients the opportunity to focus on the physical safety of their kids in the back seat or their partner in the passenger seat, not where they'll take their car to get repaired. This means helping connect them with carriers that offer the client a choice of repair shop or a pre-approved facility. It may also mean recommending a carrier that offers options such as agreed value coverage, which provides a guaranteed cash value for a client's car, with no deductible or depreciation, regardless of age or mileage.
Speak their language
Clients can only benefit from the value brought by agents and brokers if they understand the options being presented. In other words, in order to best serve your clients, it's important that you're communicating in the manner that resonates with them. This means using the right language.
While effective communication is more art than science, agents and brokers can reach their clients most effectively using clear and concise terms. For example, Chubb and maslansky + partners found that when it comes to describing policy differentiations such as the use of Original Equipment Manufacturer (OEM) car parts (parts that are made by the original car manufacturer, and not a third party) when making repairs, it's important to emphasize the restoration benefits. This means saying to clients that, "OEM parts restore your car to a similar look, feel, and function as before." Ultimately, this type of language provides peace of mind and helps clients understand the value of the benefit.
Regardless of the language used, it can be tempting to wait until renewal time to talk to clients about their policies. However, offering value isn't a one-time thing. Rather, with ongoing communication, agents and brokers can better understand their clients' evolving needs, personalize offerings and ultimately help their successful clients feel supported each step of the way.
Ana Robic (arobic@chubb.com) is chief operating officer at Chubb Personal Risk Services. These opinions are her own.
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