How to Make Your Clients Understand the Value of Risk Management
Recently, I wrote a guest post for our partners Sitkins International. ClearRisk is a strategic partner of Sitkins International and provides Sitkins members with a way to deliver the risk reduction approach online ™.
This post summarizes the first of three steps in helping your clients understand the value of risk management.
The insurance market is fiercely competitive. Insurance agents and brokers (hereinafter agents) need ways to create a competitive advantage to attract and retain business. There is a great opportunity for agents to really differentiate themselves by helping clients to manage risk more broadly than just providing insurance coverage. The greatest challenge is that most of your clients don’t know anything about risk management; so how do you make them see the value?
Here are 3 how-to steps:
1. Make the client understand that they are already managing risk:
In many ways, risk management is simply a form of management. If a company has been in business for several years and is successful, then by default they are already doing a good job of managing risk. They just don’t call it risk management, as it isn’t being done formally. Help your clients to see that every time they make a business decision, whether they realize it or not, they are assessing the risk, weighing the costs and benefits, and intuitively doing what they can to minimize the downside of that decision. As their agent, you can help them do this more formally, thereby making them more effective and profitable.
By making the client see that they already manage risk (to an extent) you’ll be able to continue the conversation on a level they understand and more easily teach them the value of expanding and formalizing the risk management process.
To view the last two steps, click here to read the full article on the Sitkins International Blog.
If you would like more information on how to provide risk management services for your clients, please view our webinar!