Even with the rise of social media and email, cold calling remains a top lead-generation strategy for many insurance agents. But, first, what does it mean exactly?
Cold calling in insurance means calling small business owners, professionals, homeowners, car owners and other potential clients to try and sell an insurance product.
This is a popular marketing strategy because it involves a human connection, provides precious information about target clients (like their objections), and gives insurance agents immediate feedback on their sales techniques.
But sales calls can be tough to make, even for experienced sales reps. We're making it easier with scripts, tips, and other things you should know. Keep reading below for help on becoming more successful with your insurance cold calling.
Insurance Cold Calling Scripts
Here are a series of insurance sales pitches you can borrow from. Use them to get started, but customize them to sound more like your own voice as you work to build trust with your prospect.
Note that you'll still get rejections even with a perfect script (if one exists). That's okay. Cold calling is a numbers game; every no means you're one caller closer to a yes.
And the more calls you make, the more you can tweak and improve your conversation. With every call, you'll notice your confidence grow and an improvement in the call's overall outcome.
1. When You Get Voicemail
It's not uncommon for people to send calls to voicemail when they're from an unknown number or at a bad time.
Here's a brief script that allows you to try again later or have the prospect call you back when they're in a better place to answer your call.
Hey John, this is Bill with ABC Insurance.
We haven't spoken before, but I thought you'd be interested in our new business owners policy, which should get you better benefits at a lower price. If this sounds good to you, call me back at 123-456-7899.
Thanks, and have a great day!
2. When Your Prospect Only Has a Few Minutes
If your potential customer doesn't have a lot of time to talk, an elevator pitch is the most effective way to get them listening from the first call. You'll want to:
- Grab their attention.
- Go straight to their pain point or what you think really bothers them.
- Talk about how your product can address it.
- Discuss your competitive advantage.
Here's an example of what you can say:
Hi, is this John? I'm Bill from ABC Insurance.
Let me get straight to the point. Workers' comp is necessary, as you know, but you don't need to break the bank for it. We offer workers' comp insurance for an average of $70 a month for businesses with less than $300,000 in payroll.
And your employees will have access to over a million providers familiar with treating workplace injuries.
What do you think?
3. When Your Prospect Has No Time at All
Trying to keep a conversation going when your prospect really doesn't have the time can be off-putting. It's better to hang up and do your sales pitch another time.
If they tell you they can't talk right now, respect that and say:
Okay, not a problem at all! I'll reach out again another time. Thanks, and have a great rest of your day.
4. When You Want to Take a Lead Through a Sales Funnel
Sometimes the easiest way to turn a cold insurance lead into a buying customer is to warm them up first.
In insurance, the easiest way to do this is by offering a free quote, though you could also offer to follow up with educational guides, product brochures, and other materials that get them curious and keep the conversation going.
You might say something like:
Hi, I'm Bill from ABC Insurance.
Am I speaking with John? I wanted to send over a free commercial auto insurance quote for your work vans.
We've been saving customers an average of 15% on their premiums, and I think we can do the same for you.
There's no obligation to purchase anything. It's just to see your choices. Is this something that interests you?
5. When You Want to Follow Up with an Interested Prospect
Cold calling can be a great way to nurture leads that have shown an interest in your insurance products. They might have gotten a free online quote or entered their information online to receive a freebie. You can follow up over the phone by saying:
Hello, am I speaking with John? I'm Bill from ABC Insurance. You recently filled out a quote for professional liability insurance.
If you have a few minutes, I just wanted to review the policy with you and figure out how we can make it a perfect fit.
6. When Your Prospect Shows No Interest
Just because your prospect doesn't seem interested when you first call doesn't mean it's an automatic no. When they tell you they don't want what you're offering, you can try to educate them on why that type of insurance might be important to them.
For example, if they told you they still have to think about getting errors and omissions insurance, you can say something like:
Sure, I understand. Something to keep in mind is that E&O insurance can cover incidents that happened before you got the policy. But there are limitations, and you'll pay more the older the incident is.
So, buying a policy sooner rather than later can help you get the protection you want for a price that's still within your budget.
7. When You're Calling Existing Customers About New Products
Some of the people you reach out to will already be your clients. In these cases, you're promoting a new offering or product that you think goes well with their existing insurance policy or that might be a good fit for them based on what you know about their demographics or needs.
Here's what you can say:
Hey, John. This is Bill calling from ABC Insurance. You have a workers' comp policy with us.
I just wanted to let you know we recently added a business owners policy to our suite of products, so you can bundle your workers' comp and BOP insurance with us to save up to 5% on your policy.
What do you think?
Common Cold Calling Objections and How to Counter Them
As you make your way through your cold call list, it's inevitable you'll be hit with various objections. Planning for them can help you know how to best answer them, especially when you know what you're selling can truly help the other person.
Here are some objections you'll see most often and some ideas on how to address them.
- I already have [type of insurance]: Let them know how what your agency offers is unique. It could be lower prices, better service, quicker claims, and more.
- This doesn't fit my budget right now: Talk about any available discounts, how low premiums can be, and how much value a policy can provide.
- I don't think I need a policy now: Discuss why that might not be true and how a policy might benefit them.
- I'd have to look into what kind of policy would be best for me: Send them informational materials and quotes based on a few scenarios.
- I've already decided to go with another insurance company: Tell them how what you offer is different and ask to send them a free quote.
What Are the Best Times to Cold Call Insurance?
Historically, the best times to cold are between:
- 8 - 9 a.m.
- 10 a.m. - noon
- 4 - 6 p.m.
These times are when you're most likely to catch people driving to work or wrapping up activities before heading off to lunch or home.
But there's a growing amount of people working from home, so these times aren't as set in stone as they used to be. You can experiment with different times to see what increases your success rate.
You can also try calling five to 10 minutes before the hour when people are heading out to meetings or coming back from one that ended early.
What Are the Rules on Cold Calling?
Did you know you can only make sales calls within certain hours? The US Securities and Exchange Commission put this rule and others in place. Here are the cold calling guidelines you have to follow:
- You can't call anyone on the National Do Not Call Registry. You have to search this registry every 31 days so you don't accidentally call a number that's newly added.
- You can only call someone at home between 8 a.m. and 9 p.m., unless you already have an established relationship with them. But you can call them at work at any time.
- When the prospect picks up the phone, you have to let them know your name, company, and the purpose of the call. If they ask, you have to give your contact information, like your phone number and address.
- You must put people on your agency's "Do not call" list when requested.
In addition to these general telemarketing rules, you might have to follow other industry-specific insurance rules. For example, if you're a health insurance agency selling Medicare plans, you're not allowed to call people unsolicited unless they already have a plan and you're the agent that helped them join.
How Can Insurance Agents Find Leads for Cold Calls?
If you work under an insurance company, agency, or brokerage, it's likely they'll supply you with a list of people and their contact information (a.k.a. leads) for you to call.
If you're starting your own agency, you can purchase these leads from companies specializing in insurance leads or even leads for the type of insurance you sell. And you can typically filter leads before buying them, such as by age and location.
Be sure to get what's known as "qualified leads." These are people who have already shown interest in purchasing insurance, such as by filling out a form on an insurance aggregator site.
These kinds of leads are more expensive than a random list of people you might get with a general online lead aggregator. But you'll save time and earn more money because you already know they need an insurance product, and close rates are higher.
How to Make Great Cold Calls
You have the cold calling rules, scripts, and times down. What else do you need to know? Here are 5 tips to boost your cold calling success.
1. Check if You've Reached out Before
Reviewing your past interactions with a prospect can help you decide how to move forward. For example, you can mention you've spoken with them about the insurance product before and how they asked you to follow up again after they'd finished moving.
While you could search your emails to see if you've interacted with a prospect before, it'll likely be more efficient to use a CRM. CRM stands for Customer Relationship Management. It's a system where you keep track of all your interactions with clients and prospects. It can capture things like meetings, phone calls, and emails, as well as your personal notes from those interactions. Zoho is a popular option in the insurance industry, but there are other highly rated ones.
2. Set Yourself up for Success
You better your chances of scoring a sale by:
- Dressing for success: Your prospect can't see you, but how you dress impacts how you feel, which is transmitted through your voice. Even if you're working from home, try to keep it at least business casual.
- Decluttering your desk: An organized desk helps you focus better and reduces stress and anxiety, which is nice since cold calling can be nerve-wracking for many!
- Clearing out your mind: If you dread cold calling, you likely have several negative thoughts about it running through your mind. What are they? Write them down. Do you want to continue to think them? If not, you can choose more intentional thoughts that empower you and are uplifting. Make it believable though! For example, thinking "I love cold calling" might feel like too much of a stretch, but your mind can likely get on board with, "I'm open to learning how cold calling can bring in clients." In that way, you can work your way up the thought ladder until you really do feel like you love cold calling.
3. Practice Your Script on Your Camera Phone
When you practice your script, make sure to smile as you talk and keep your voice energetic. Chances are, if you look friendly, you'll also sound it.
But you still want to make sure you're coming across the way you intend. You can use your phone's front camera as a mirror while you practice your script. Then when you're ready, take a breath and hit record. When replaying the video, you can see if you want to change anything in your tone or phrasing.
4. See It for What It Is: A Numbers Game
One of the hardest parts of cold calling is rejection. But don't let it deflate you, and don't take it personally. Rejection simply comes with the territory when you're cold calling. Keep in mind that your conversion rate will increase with experience.
Instead of focusing on the nos, aim to make a certain amount of calls in a specific timeframe, such as 30 calls in one day. Then you can concentrate on counting down to 0 calls instead.
5. Take Notes After Each Phone Call
You'll improve your conversion rate if you take a few minutes after each call. Jot down what worked, what didn't, and what you want to do differently next time.
Also, make a note of what the objections were and how you want to counter them next time. Keep track of your close rate by writing down how many noes and yeses you got.
Make Cold Calling Easier
You can use cold calling scripts to make reaching out to prospects less daunting.
Once you have an idea of what to say, you can better your chances by setting yourself and your environment up for success.
By recording your thoughts after each call, you can learn from your mistakes and land more insurance clients. Now that you know everything there is to know about cold calling, all that's left to do? Pick up that phone!
1. Introducing Yourself
Your introductory email needs to pack a lot of information into a small package. Try something like this:
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Hello Jane,
My name is John Doe and I work for ABC Agency, where we provide business insurance policies to many of Dallas' rockstar small businesses.
Congratulations on your new business, Jane's Bakery. Are you wondering if you have all the insurance you need? Or if your policies will really cover you in a pinch?
At ABC Agency, we pride ourselves on providing robust, comprehensive coverage options to companies like yours with flexible, pay-as-you-go plans.
Are you available this week to talk more about how we can help? I can help you find the most affordable rates and the best policies out there.
I look forward to speaking with you soon.
Cheers,
John Doe
2. Presenting a Quote
Once you've met with your potential client, a quick reply with their quote will get the ball rolling.
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Hi Jane,
Thanks so much for meeting with me this morning. I loved touring Jane's Bakery–I can still smell those delicious chocolate chip cookies baking! You have a great location, and I'm sure you're going to do great on Front St.
After reviewing my notes, I've pulled together an insurance quote for you (attached). I recommend a business owner's policy. A BOP includes several insurance products in one: liability, property insurance, and business interruption insurance. It offers robust coverage at a competitive price.
I'll call you in a few days to see what you think about this insurance plan. In the meantime, if you have any questions, don't hesitate to email me or call me at [phone number].
Again, thank you for your time today. I look forward to working with you in the future.
Cheers,
John Doe
3. Thanks for Purchasing a Policy
Gratitude is important! It's never a bad idea to thank your clients for their business.
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Hi Jane,
Thank you for choosing a business owner's policy with ABC Agency. We know it's so important to get the right coverage for your business, and we are honoured you've placed your trust in us.
We're excited to work closely with you, and our no. 1 goal is to make sure you're business is always protected.
Do you have any questions? We are here to help. Reach out whenever something comes to mind.
Thank you again for choosing ABC Agency to insure Jane's Bakery.
Cheers,
John Doe
4. Welcome Email
A welcome email helps clients feel like you're there to help–and can softly pitch other insurance products you offer.
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Dear Jane,
Welcome to the ABC family! We are thrilled to have you as a new customer and can't wait to meet all of your insurance needs.
As an independent insurance agency, we work with multiple insurance providers to find the best coverage options for all our customers. If you need any other type of insurance–like [include additional offerings unique to your agency, like life insurance, health insurance, home insurance or anything else]–we can help you too.
Do you want to discuss any of these policies?
Cheers,
John Doe
5. Introducing a New Product
A happy client may want to expand their business with you.
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Hello Jane,
I hope all is well with you and Jane's Bakery. I stopped in yesterday for a blueberry muffin and coffee, and they were delicious. I loved the hint of cinnamon in the muffin! Was that your idea?
I wanted you to be the first to know we are now offering commercial vehicle insurance to our policyholders. Auto insurance for your catering vans is super important since your personal car insurance won't cover them.
We're offering this insurance coverage solely to our current business clients at the moment and have some very competitive rates.
Would you like me to work up a quote for you?
As always, thanks so much for being a part of the ABC family.
Cheers,
John Doe
6. Asking For Referrals
Once your relationship is established and comfortable, let your clients help you grow.
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Hi Jane,
You've been a valuable member of the ABC family for two years now, and we so appreciate your business–not to mention the muffins you supply for our monthly meetings!
Because you are a valued policyholder, I wanted to ask a quick favour. I know you are active in the local Chamber of Commerce, and I'm hoping you might know some colleagues who would benefit from working with our insurance company.
Referrals are one of the most effective ways to connect with our community since people really trust their friends, family and colleagues. Is there anyone you'd recommend I speak with?
Remember that in addition to business insurance products, we offer everything from life insurance policies to pet insurance.
As a thank you for your help, we will send you an Amazon gift card of $100 when your referrals buy insurance from us.
Thanks so much for your help!
Cheers,
John Doe
7. Policy Renewal
If your client needs to renew their policy with you, send an email like this:
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Hi Jane,
I hope you're doing well! What a year it's been—from being listed as one of the top 5 bakeries in Dallas to being an official vendor for the city—you have so much to be proud of.
Just a heads up that your business owner's policy is up for renewal soon and will expire on June 15, 2023.
If you're still happy with the coverage, we can easily renew it for you.
Do you have some time to chat this week?
Looking forward to serving you again!
Cheers,
John Doe