Customers who own a home with a replacement cost above $500,000 may have unique coverage needs. Learn why independent agents are uniquely suited to this type of account and how it will build your business.
When you build relationships with customers who have affluent accounts, you’re building relationships with clients who tend to have higher retention rates and increased cross-sell opportunities.
Unlike other demographics, the affluent account segment is seeking peace of mind and protection, not just low prices. Moreover, lower price sensitivity means that these customers are looking for a trustworthy agent to help them find the proper coverage, and once they find that agent they are likely to stick with them.
These customers are a perfect fit for the ease, choice and advice offered by an independent agent. Consumers are not insurance experts. All too often, they lack the expertise and nuance required to create insurance solutions that offer the highest level of protection. They are looking for guidance and consultation in creating comprehensive protection for their unique coverage needs.
Mass-Market Coverage May Not Offer Adequate Protection
Imagine a customer who chooses mass-market home coverage when they buy their first home. Over time, they move into larger, more customized homes, grow their family, and purchase toys like motorcycles, boats or RVs—but they never update their coverage. They may not realize that their risk profile and additional assets have outgrown the protection offered by the policy they originally purchased. This leaves critical coverage gaps that could lead to unexpected expenses and leave these customers unprotected.
A mass-market homeowners policy may suit a new homeowner in a small starter home. However, it may be insufficient to cover losses to a home with a replacement cost of $500,000 to $3 million.
These homes are often unique, with custom finishes, antique furnishings or historic elements that aren’t covered in a mass-market homeowners policy. However, extended dwelling coverage and building ordinance or law coverage can help customers rebuild after a loss if the additional expenses required for materials, labor or bringing the home to code exceed the Coverage A amount. And policies that offer replacement cost upfront give customers more options in the event of a total loss.
Affluent Accounts Bring Cross-Selling Opportunities
A customer with an affluent account may have risk exposures from being active in the local community, hosting events in their home or owning multiple homes or specialty vehicles they use in their free time. These customers may need an umbrella policy and coverage for additional homes and vehicles.
This offers perfect opportunities to cross-sell multiple policies to the customer, which can be a growth engine for your agency to sell more. This also solidifies the retention opportunity offered by affluent accounts as you help customers cover more risks.
Customers may also benefit from placing all of their business with one carrier, especially a carrier like Safeco that offers packaged discounts and a single loss deductible for customers that protect their home and auto with Safeco.
Independent Agents Are Uniquely Positioned to Ensure That Affluent Accounts Have the Best Protection
Customers with affluent accounts need the ease, choice, and advice offered by an independent agent. Looking for opportunities to grow your business with affluent accounts is mutually beneficial: you can find preferred customers and grow your agency, and your clients can rest easy knowing they have holistic protection for their lifestyle.
Learn how to have effective conversations with customers about affluent accounts.