How To Sell Insurance

This tutorial explains problems you can encounter when selling insurance to fleet managers.

Your sales rep arranges to meet a Commercial Fleet company in Cork. The drive alone is three hours long, and having left at 10 am means your rep wont get down to the client until after one.

Your Rep, Angela, arrives at the customer’s site only to be told he is out and won’t be back for an hour. Frustrated, she takes a seat and patiently waits.

Eventually David, the client, arrives in and gently apologises for his lateness. Angela smiles politely and says its not a problem.

It’s now gone two and Angela has no chance of getting back home on time for her evening class. Time pressure is on, but it doesn’t bother Angela. She is a smart negotiator.

Note – this may be a subconscious tactic from the client. Knowing that Angela has come a long distance and will have to turn around and go back again she is more likely to want to rush the negotiations and get a deal done.

David and Angela discuss next year’s premium and Angela quotes €11,500 for the company’s insurance of their fleet.

David gasps and says “that’s way too much. I couldn’t’ possibly pay that sort of money.”

Angela, being a smart negotiator says to David, “Do you not think this is a reasonable rate, David, and considering the large number of vehicles you have here I actually added a 10 percent discount to you.”

David responds “thanks for the discount, but that is still too high. I can’t possibly do business with you with those sorts of figures.”

Angela is smart. She has done some negotiating training and was expecting this comeback, so she responds, “Ok David, I understand pricing is important to you. Just so as I am clear can you indicate to me what you feel is a fair quote on this sort of fleet?”

David is on the back step here, Angela asked him to name a price and David is startled. A good negotiator would know how to counter this but David hasn’t received any training. “Well I guess €10k is a fair price to pay.”

“Thanks David. We are looking at a difference of €1,500 and I could not possibly get you covered for this sort of price, however I can offer you extra life cover insurance should anything happen to your drivers whilst on the road in a fleet vehicle”.
Angela has an arsenal of offers she could use, but knows that from experience extra cover is very important to clients and throws it out to see if David is interested.

“Ok, I like the sound of the extra cover, but I still couldn’t go that high.” Says David.
“Well, look, considering all I have to offer you, including the extra insurance which is valued at €2,100 what can you come up to?” Angela responds.

“I guess I could bring it up to €11,000.”
Angela had moved him from his figure and now has a commitment to buy. She could accept this now and seal the deal. However she is a smart negotiator and wants to get the full premium. So she says “Thanks David, I will need to speak with my manager as I don’t think he will allow such a discount. Let me get back to you tomorrow on this and I will argue your case for the €11k is that ok?”
Angela is deflecting the ability to make a decision now and wants the opportunity to continue the negotiating tomorrow over the phone as she has the €11k commitment.
“Ok that sounds good. See if you can get him to give it to me for €11k.”

“I will try my best.” Angela has the commitment and now has David asking her to fight his corner for her.