Right up front, before we get into the meat of this Blog post, I want to make it known that I hope this post to go “viral.” I want to garner as many stories as we can about the creative methods agents have used to counter objections and close a new client or get their point across to an existing one.
Sometimes agents simply have to resort to unusual methods and “arguments” to convince clients to do what is best for them; especially in light of the objections raised. To get the ball rolling I am including three of my own stories. The first is one a good friend of mine has used on several occasions and the last two are from my personal experience.
“I’ve been paying for insurance for ___ years and I’ve never had a loss.” This client obviously thinks that he is being cheated and that the promise of protection has no value – now or in the past - and is useless.
An agent friend is known to say, “OK, we can arrange for a loss so that you can get your money back plus a very healthy return on your investment.” The client will undoubtedly look shocked and puzzled by this statement. After a short pause, the agent continues, “I have a cousin that will do nearly anything to finance his ‘habit;’ I will have him burn down your house this weekend. Make sure to get some of your valuables out.”
At this point, the insured will be disgusted by your family connections and the idea that “his agent” would so willingly destroy his possessions. The agent then explains that he is only trying to point out that “getting your money out of the insurance company” is no “victory” when compared to the devastation to the person’s life caused by such a catastrophe. If handled correctly, the insured will understand that it’s better to pay and never have a loss than to have the loss and “get your money back.” The goal is to have the insured understand the value of insurance as an investment in the promised protection of his greatest asset(s) rather than as merely an expense that must be borne.
“You’re just trying to make more money off me.” This objection usually follows a coverage recommendation arising out of the unique exposures to which the insured is subject. No reason for the agent to argue or try to convince the insured otherwise; the best response might be, “You know you are absolutely right. The $10 (or whatever the commission would be) additional commission I would have made if you purchased this necessary coverage was going to pay for my son’s/daughter’s first semester of law school. Your $500,000 (or more) loss exposure was of no concern to me.” Then have them read and sign a rejection form. This helps the prospect/client understand that not all recommendations are tied to huge amounts of income and that the agent might actually be trying to look out for their best interest.
“This is just a racket. The government is making me buy coverage whether I want to or not; what a rip off.” I had this one when going over an insured’s workers’ compensation renewal. Like the first agent (“I’ve been paying…”) I did not argue. To this contractor I said, “OK, let’s cancel your workers’ compensation policy. But if you have an employee fall off a ladder, this is what you will have to pay out of your own pocket” (as I showed him the state compensation schedule). He agreed that the premium wasn’t so bad after all. The goal here, teaching the client that the protection was necessary not just to satisfy the law, but to protect the financial future of the business.
If you notice none of these is an attempt to argue with the prospect/client; they simply redirect the client’s desire to argue back to the real issue and purpose of insurance – financial protection. Facetiously agreeing then showing the insured the reality of the situation can be a powerful tool for making your point – if handled correctly.
As I mentioned up front, send in your stories and accounts; one you send may help another agent. Forward, post, tweet, whatever you want to do to get this out there would be great so that we can get a hold of all the stories possible. Plus it might actually be fun to see what other agents have done.