Total national lockdown – a word which came into effect from March 24, 2020, and is, till now, causing a slowdown in economic activities in India
Though the Government has eased up lockdown restrictions in a phased manner from 18th May 2020, the concepts of social distancing and no physical contact is still very much relevant as the pandemic is continuing to spread unchecked. Most of you are, therefore, working from home, another new concept which emerged in the lockdown. While you must be helping your clients buy suitable insurance policies for their needs, have you ensured timely renewals?
Insurance policies need regular renewals for providing continuous coverage to your clients. When renewed on time, you and your customers can enjoy many benefits which include the following –
- Your clients can enjoy renewal benefits like no claim bonus, reduction in the waiting period and continued coverage
- They can make changes to their existing policies at the time of renewal
- In case of motor insurance plans, which are mandatory as per law, renewals are a must so that your clients do not suffer legal complications if they are caught without a valid insurance coverage
- A continued health insurance policy would allow your customers the much-needed financial assistance if they suffer from Coronavirus and are hospitalised without any waiting periods
- You also get to enjoy renewal commissions which boost your earnings every time that your clients renew their plans
- Moreover, when you provide unfailing service to your clients at the time of renewals, you gain their trust. This helps in the word of mouth publicity helping you get more leads and references and increasing your customer base. Needless to say, as your customer base increases, your business grows. So, timely renewals are a must.
Persistence is the key to insurance sales. It is measured by the policies which are still in force compared to the policies which you have sold. A high persistency ratio builds up your reputation and goodwill as your clients know that they can depend on your continuous service. So, you should not forget to get your clients’ policies renewed on time.
Things to keep in mind on renewals
- In case of life insurance policies, get the policy renewed within the due date. If the due date has expired, ensure renewals within the grace period to avoid lapsation
- In case of health insurance plans, assess your clients’ coverage needs. Make sure that your clients have a sufficient sum insured to meet the expensive medical costs associated with hospitalisation whether due to COVID or otherwise. If the sum insured is low, urge your clients to increase their coverage level either in the same policy or through a top-up policy if affordability is an issue.
- Try and opt for contactless renewals. Ask your clients to renew their policies online directly from the insurance company’s website by making a digital payment. This would help avoid physical contact and keep you and your clients safe from possible infection
- Install the Aarogya Setu application on your Smartphone and ask your clients to do the same. The application would help you and your clients assess their health risks so that if you have to meet them physically, you can ensure that you are safe from the threat of infection
Insurance renewals are simple and you can help your clients renew their policies through your assistance. Offer your expertise if your clients’ existing insurance plans need a revamp so that they are adequately covered. Moreover, ensure that the renewals are done on time so that your clients can enjoy uninterrupted coverage and financial security when an emergency strikes.