It’s peak season, and you undoubtedly have a great many renewals going on right now. Some may be straightforward and don’t involve changing plans. Others may be more time-consuming because your customer is expecting a bigger rate increase and wants to thoroughly shop the market. What can you do to ensure your renewals are successful? Below are five tips to consider.
Health Insurance Renewal Tips
1: Initiate early communication.
Our general advice is to communicate effectively and often with clients. That’s why we suggest every broker adopt and implement a good Customer Relationship Management (CRM) platform. Check out our prior post, Ranking the Best CRM Options for Insurance Brokers.
During 4th Quarter and peak season, communication is especially critical. Your goal should be to reach out to clients well in advance of renewal. That enables you to set the stage concerning what they can expect as far as a potential rate change.
Forecasts for 2025 are mixed, but an increase is expected for most employers when it comes to employee benefits costs. Rate changes may vary by coverage selected and insurer. KFF said in August 2024 that Affordable Care Act (ACA) insurers were seeking a median premium increase of 7% for 2025. That is only slightly above the 6% increase in 2024 premiums.
The often-cited reasons for higher 2025 rates are rising health care costs – particularly hospital charges – and costs associated with weight loss and specialty drugs, which are being prescribed more frequently.
Providing your clients with advance notice about what they might expect for 2025 shows them you’re tracking what’s going on in the industry – reinforcing the value of their relationship with you. It also gives you ample time to gather information on alternatives they might consider as they near their renewal – before your in-person meeting.
2: Conduct a comprehensive plan review.
Your thorough review of plans available in your local area is another way to demonstrate your expertise to your clients. After your review, schedule a meeting to discuss whether their current health insurance plan(s) still address their needs. Ask about the employer’s and employees’ experiences with the plan(s). Discuss changing health care needs. It’s possible their current HMO plan(s) are no longer meeting the needs of employees as they get older – and a PPO may be a better solution. Are there employees working in multiple locations or remotely from out-of-state. This could impact employees’ available options. Your discussion will help you identify gaps or other issues – and help you determine whether a plan adjustment or replacement is warranted for the renewal year.
3: Highlight coverage or cost changes.
The marketplace is constantly evolving, and many insurers have added wellness and preventive care, bundling discounts, and other benefits not available in the past. Some plans may have changed deductibles – or added new ones to certain types of treatment. Your clients may be unaware of these changes – and it’s up to you to educate them on how their existing plan is now better (or pales in comparison to other plans not previously considered).
Word & Brown’s quoting platform makes it easy to highlight plan differences. It also features customizable output, built-in safeguards, and more. By providing your clients with more transparent information, you’re able to simplify the renewal process and help them make more informed choices for their new plan year.
4: Openly address client concerns.
By creating and nurturing an open dialogue, you can put your clients at ease. That encourages them to ask questions and express any concerns. This will enable you to develop a more tailored health insurance solution that balances the employer’s budget limits with the health care needs and desires of employees. When you can promptly – and confidently – respond to your clients’ inquiries, you’re able to build trust and develop a stronger, long-term relationship.
5: Schedule a follow up and regular check-ins.
If your client does not commit to renewal after your first meeting, be sure to follow up as their renewal date gets closer. You don’t want to risk losing the business to another broker or agency. Or to a carrier you do not represent.
If you’re successful in your renewal efforts, but your client is making a move to a different insurer or a different type of plan, reach out to your client to confirm the open enrollment schedule and deadlines for paperwork. Then, quarterly, after renewal or the effective for new coverage, reach out to confirm your customers’ satisfaction. This also helps you nurture your ongoing client relationship.
Ask your Word & Brown rep about their suggested steps in advance of your upcoming renewals. They can discuss how our marketing tools and other resources further set you apart from your competition. If you’re not already doing business with Word & Brown, call 800-869-6989 or register online to get started.
