Look, we all have been there, done that. You spend hours crafting the perfect pitch, only to hear the same objections over and over again. And guess what? Most agents give up right there.
But you? You're smarter than that.
Today, we're diving into two of the biggest objections insurance agents face—and more importantly, how to crush them.
Objection #1: Your quote is too expensive compared to my current policy.
Translation: They think price is the only thing that matters. They see your policy as a line item – a commodity, not a strategic investment. But here's how you flip the script:
1. Stop Quoting, Start Educating
Most agents jump right into giving a quote, then defending it. Wrong move. Instead, take a step back and position yourself as their trusted advisor. Ask them, “Has anyone spent time identifying your risks?” Then, offer a free risk audit and policy review, and show them where their current plan leaves them exposed.
2. Highlight the Hidden Costs
Sure, their current policy might be cheaper—but at what cost? Limits, exclusions, and gaps could mean they're sitting on a financial time bomb. Explain how the RIGHT coverage isn't an expense; it's an investment that protects their business and bottom line.
3. Reduce Their Total Cost of Risk (TCOR)
Solve the problem! Show them how better risk management strategies can cut their overall cost of risk, including claims, downtime, and legal fees. When they see the bigger picture, your price becomes the obvious choice.
4. Apply the Five-Step Risk Management Process
Beyond Insurance recommends tackling objections by applying a structured approach:
- Identify Risks - Conduct a thorough assessment to uncover potential exposures the client may not have considered.
- Analyze Risks - Evaluate the likelihood and potential impact of uncovered risks.
- Control Risks - Introduce strategies to mitigate risks, such as safety protocols or operational changes.
- Implement - Structure the right insurance solutions to align with their risk tolerance and financial objectives.
- Monitor and Adjust - Provide ongoing support and updates to adapt to changing business needs.
By following this process, you position yourself as a proactive partner rather than just another vendor.
Objection #2: Insurance is all the same. I just need the cheapest option.
This one is a killer because if they believe it, you're just another number. But here's how you set yourself apart:
1. Ask them if you can get an in-depth knowledge of their business.
Tell the decision-maker, “Because you are so busy, I would like to recommend that we meet with a cross section of your staff to learn more about your business. I’d like to meet with members of your management team as well as supervisors and staff who may share a unique perspective on your business.” If the decision-maker agrees, talk with the management team and employees about the risks and hazards they see in the business. This will give you a unique perspective on your business.
2. Bring in the Real-World Examples
People buy based on emotion, then justify with logic. Share a real client story where better coverage saved a business from disaster. Highlight unique policy features like industry-specific endorsements, dedicated claims teams, and proactive risk management that their current policy lacks.
3. Show Them the Profitability Impact
When a loss happens, it's not just about paying a claim; it's about lost revenue, downtime, and damaged reputation. Paint a picture of how your risk management process safeguards their business continuity and profitability—not just their premiums.
Insurance isn't about pushing policies; it's about positioning yourself as the only logical choice. By educating, adding value, focusing on risk identification first, and showing prospects what they stand to lose, you'll break through objections and close more deals.
So, the next time you hear these objections, don’t fold. Step up and show them why you're the expert they need.