Becoming a trusted risk advisor is about more than just delivering quotes and writing policies. Agents can differentiate themselves and add value to their services by helping policyholders proactively manage risk, not just insure it. Risk management solutions can help lower a policyholder’s total cost of risk and increase retention.
Risk Management Solutions to Help Policyholders Save Money
Here are some ways agents can reposition themselves as trusted risk advisors and offer risk management solutions to help policyholders save money:
Instead of starting with a quote, offer a risk assessment.
Most agents start with a quote, but the best risk advisors begin with a discussion about the client’s risk and exposures. Conducting a simple risk assessment can uncover hidden exposures and provide a preliminary structure for reducing risk. Even personal lines customers and small businesses can benefit from a risk assessment. When risks are managed well, policyholders can save money on premiums. Lowering risk through a proactive assessment and plan can reduce the possibility of losses, which benefits the policyholder as well as the insurer.
Recommend loss control services when appropriate.
Many individuals, and even small businesses, are not familiar with the risk control services that exist and how these services can benefit them. Agents can recommend proactive services and vetted third-party vendors to add value. Some examples include fire prevention services and water detection systems for personal lines policyholders, and cybersecurity training, background screening services, and slip and fall risk assessment firms for commercial policyholders. Investing in low-cost prevention methods, like water sensors, can often prevent a much more expensive loss from occurring. Insurers may also give discounts to policyholders who invest in these risk management solutions.
Educate policyholders about the hidden costs of risk.
Insurance is just one part of the total cost of risk. Indirect costs, such as business interruption losses, downtime, legal expenses, reputational damage, and others, can be even more expensive than the original loss. Consider the example of a minor slip and fall incident that results in a six-figure lawsuit. Many policyholders do not consider these hidden costs. By explaining these additional indirect costs, agents can help policyholders understand the true cost of the risks they have and why taking preventative measures to avoid losses is critical.
Proactively communicate with policyholders throughout the year.
A powerful proactive way to keep policyholders engaged throughout the year is with a simple seasonal risk management checklist. This could include:
- Spring flood risk tips and home maintenance guides
- Wildfire risk assessments in advance of wildfire season
- Tips to inspect the outdoors and structures during the summer
- Cool weather preparation tips in the fall, such as heating system maintenance schedules
- Advice to update emergency plans and review cold-weather vehicle risks in the winter
Timely seasonal reminders can be automated and personalized for business and personal lines customers. These tips help keep risk management solutions on the policyholder’s mind while adding value to the services provided by the agent.
Learn More From the American Agents Alliance
Consider attending the annual American Agents Alliance 2025 Conference & Expo from September 25-27 in Palm Desert, California, to continue learning more about helpful topics like this, designed for independent agents and brokers. Featuring educational sessions (some with CE credit), networking events, fun outings, and more, don’t miss the largest P&C event in the West!
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