Renewal Sales Tips: How to Read and Explain a Client Rate Renewal
A big part of your work as a health insurance broker is helping your clients read and understand their renewal rate notification ahead of their current contract end. If there’s a rate hike ahead, that client conversation can be challenging. But your Word & Brown (W&B) rep can help you prepare – and potentially save business that could be at risk. Here are renewal sales tips you will want to consider.
How Word & Brown Reviews Small Group Renewals
For Affordable Care Act Small Group business, W&B typically reviews the current renewal and illustrates how the group’s existing rates compare with other available options. Our comparison check includes other products in the current carrier’s portfolio as well as competing carriers in the market. Rather than simply presenting the percentage change, we can help you understand what is driving the change and identify alternatives that may help offset it.
For example, we may compare the group’s current plan/current rates vs. renewal rates, calculate the overall percentage increase, and then discuss alternate plan designs and carriers. Depending on your market, we can also provide context around broader carrier or market trends that we are seeing. This can be particularly useful when a broker needs to explain that a substantial increase is not necessarily unique to that employer.
What Drives a Small Group Rate Increase?
The conversation is more likely to center around factors such as carrier rate actions, age/demographic changes in your client’s group, geographic rating, plan selection, and overall health care and prescription-drug cost trends.
For Level-Funded, Large Group, and experience-rated business, the conversation can be quite different. Depending on the carrier and arrangement, you may have access to utilization/claims reporting, large-claim information, loss ratios, or other experience data that can help explain the renewal. In those cases, the group’s own experience can become a much more meaningful part of the renewal discussion.
Here’s What We Can Do
One of the most valuable things W&B provides is the ability to help you move the conversation from “Here is your increase” to “Here is what the increase means, how it compares with the available market, and what we can do about it.”
W&B has experts to help you uncover your Large Group clients’ needs and concerns. We offer a complete carrier analysis, quote review, and rate negotiation with select carriers.
Insurance Rate Renewal Sales Tips
Don’t Wait for the Number to Explain the Number
Reach out 60-90 days before renewal, not the week it lands. Brokers who explain the “why” before the client sees a number in writing control the narrative instead of reacting to sticker shock.
Know the Trend Before Your Client Does
For example, “The Small Group trend is running at an approximately 8-12% this year.” That shows your client whether their number is in line with the market or genuinely high.
Break the Renewal Into Its Parts
Separate the renewal into its parts before you present it. Base trend, claims experience (if available), plan mix shifts, and any regulatory/tax changes. These are often blended into one scary top-line number. If you break apart the components, that will make it easier for clients to understand what’s driving the final number.
Get Help With Your Next Client Renewal
Contact your Word & Brown rep about how we can help you shop and compare the market, so your clients are able to find solutions that balance their budget needs and the needs of their employees. Don’t overlook the W&B extras that you can offer to help differentiate yourself and lock-in clients for the long term.
If you are not already working with us, it’s easy to get started. Register online today. Or contact Jim Pippins, Senior Director of Broker Success.
