While the term ‘active listening’ has been in use since the 1950s, it remains an important business skill. Sometimes referred to as adaptive listening, mindful listening, or responsive engagement, the core idea of engaging with what a speaker is saying remains the same. And in a world where interruptions are the norm, the simple act of listening intently is a critical skill and competitive advantage for insurance agents.
Read on to learn how active listening skills can help reduce E&O errors.
How to Reduce E&O Claims With Active Listening Skills
E&O claims often begin with a misunderstanding when a policyholder believed they had coverage when they did not or an agent assumed a policyholder understood their coverage or policy language. Active listening can help prevent these gaps and help reduce potential E&O claims.
Active listening involves not only hearing the words being spoken but also understanding the thoughts and feelings behind the spoken words. When agents use active listening skills, they reduce ambiguity and improve transparency by verifying the policyholder’s intent. It can also help build stronger relationships with policyholders. Often, when people feel heard they share more details and context, which can lead to better policy recommendations and longer term retention.
Here are six ways to utilize active listening skills with policyholders to help reduce the potential for E&O claims:
Remove distractions to focus fully on the conversation. Eliminate distractions to focus full attention on the policyholder and discussion. Closing email, putting mobile phones on ‘do not disturb’ mode, and silencing notifications can help agents focus on the policyholder. Being distracted by an incoming text could mean missing a critical part of the discussion, leading to a potential coverage gap and E&O exposure.
Ask clarifying questions to gain understanding. Policyholders do not always know what details are relevant to share with their agent. Ask clarifying questions to determine specifics, fill in gaps, and learn more about new risks a policyholder may have. Asking questions also helps to avoid making assumptions that may prove incorrect when a loss occurs.
Paraphrase to confirm understanding. Restating what a policyholder has said can be a powerful tool to help confirm understanding. This can ensure accuracy and allows for correct documentation of the coverage discussion.
Listen for gaps and ask questions about what the policyholder does not share. Sometimes policyholders will avoid bringing up certain risks or exposures because they fear higher premiums or worry they will be denied coverage. Agents can listen for the potential gaps in conversation by paying attention to context clues and policyholder behavior. Asking a policyholder to further describe a risk can uncover additional exposures that should be covered.
Train agency staff on active listening skills. All employees should follow active listening skills, including customer service representatives, agents, and managers. Include active listening skills and communication updates in new employee orientation and ongoing staff training. Not only will this provide a consistent policyholder experience, it will also help the team identify coverage gaps and exposures through various touchpoints with the policyholder.
Try the RASA listening method. For a quick way to get started with active listening, try the RASA method. RASA stands for Receive, Appreciate, Summarize, and Ask Questions and can be considered a basic framework for active listening.
Request Your E&O Quote From the American Agents Alliance
Have you reviewed your E&O coverage lately? Producers in California can request their free quote today from the American Agents Alliance. Make sure your E&O coverage is keeping pace with your risk with your E&O insurance quote today.
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