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Tactics to win new clients & insurer relationships

Tactics to win new clients

The tactics that you deploy to win a new client are essential to succeed. If you’re spending time chasing new clients and not winning very much then its either because you are spending time doing the wrong thing or you lack a suite of tools and tactics to win.

What do I mean by the right tactics? 

It is very rare to win a new client as a result of pure luck. You have to make things happen and deploy the right tactics to win on a consistent basis. These are some of the best practices that I see:

  • Active explanation to the new client as to why involving other brokers is a bad thing
  • Active management of the expectations of the new client of what is going to happen (and when) during your involvement
  • A joint understanding of the requirements of the review
  • Ask all the right questions to ensure you come up with a cracking solution for them
  • Agree with the new client what they are going to do when you identify holes in their existing programme
  • Agree with the new client a ‘Terms of Reference’ (TOR). This is a document that states what you are going to do, what the new client has agreed they will do and how both will react when certain things happen during the process
  • Send the TOR to the new client and ask them to acknowledge and agree it’s content (this then becomes a moral contract and should reflect the conversation you have had with them)
  • Agree the approach you are going to make to the market e.g. exclusive quote, confidential review, mid-term appointment, nominated markets or a full market exercise. (Explaining the benefits and limitations of each)
  • Agree with the new client that you will present your terms only after the existing broker
  • Keep contact with the new client to build your relationship further during the review process (to manage their expectations on your delivery of your side of the TOR)
  • Have the right relationship with your insurers to ensure you are going to win.

Insurer relationships

What do the best brokers do to get the best out of the insurers? The best brokers know exactly where they intend to place a risk before they have approached the insurance market; and they know exactly what they need to do to be appointed by the new client. This makes it easy and fairly quick for the insurer to decide whether they really want to support you or not.

What should you do?

  • Engage your target insurer early. The holding broker will often seek to block the market if they know they are under competition. Your target insurer needs to see their best chance as being with you through quality engagement – be early enough to allow them to manage competing submissions appropriately
  • Be honest and up-front with the insurer. Putting an unrealistic target price on a presentation is more likely to result in the insurer declining the risk to you and quoting someone else.
  • Have quality relationships with insurer key decision makers that want to support you to win new clients. Insurer ‘influencers’ are good to have but the critical relationship is with the Insurer decision makers. You will only find out the quality of your relationship when you need help. You’ll soon find out who your friends are!
  • Don’t waste the insurers time. Don’t bother showing them risks that they won’t win. Insurers do track your individual conversion ratio’s.
  • Make the insurer decision maker feel like a ‘rock star’, they have the ability to enable you to win new clients. Working closely with your insurer decision makers, this means that they pick up a high proportion of what you submit. In return, these decision makers will go looking for your quotation requests in a pile of other quote submissions. The Insurers have lots of choice on who they deal with and you will want your business to be front of their mind.
  • Only deliver quality presentations, this makes it easy for the insurer to pull your quote from a pile of quotes they receive on a daily basis.
  • Understand the insurers underwriting appetite and areas of allowable discount, this makes it easy for the insurer to have real hunger to write your business.
  • Make your business stand out. Present your broker business to the Insurer decision makers and let them know what you are going to do and what you want from them.
  • Review insurer performance regularly against what they said they were going to do re helping you to win more new clients.

If you would like further information or explanation on anything contained within this blog, then please give me a call on 07920 299727.

Missed any of the other 12 Days of BIBA blog posts?

Day 1: Why winning new clients is critical to the survival of any broking business
Day 2: The importance of leadership
Day 3: What gets measured gets done & sources of opportunity
Day 4: Standing out from the crowd

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