How to Turn the Dreaded Rate-Increase Call into a Retention Win

For many insurance agents, few tasks inspire more anxiety than the rate-increase call. You know the client didn’t ask for higher premiums, emotions may run high, and the risk of losing the account feels very real. Yet when handled correctly, a rate-increase call can become one of the most powerful moments to strengthen trust, reinforce value, and improve client retention.

The difference isn’t the rate itself - it’s how you communicate.

Reframing the Rate-Increase Call

Before dialing the phone, it’s essential to reframe your mindset. A rate-increase call isn’t just about delivering bad news; it’s an opportunity to demonstrate professionalism, transparency, and advocacy.

Research from the insurance industry consistently shows that customers are more likely to stay when they feel informed and respected. According to customer experience research cited by Harvard Business Review, trust and empathy during difficult conversations are key drivers of long-term loyalty.

When clients sense that you’re on their side, price becomes only one part of the decision.

Practical Communication Strategies That Build Trust

Lead With Empathy and Transparency

Open the rate-increase call by acknowledging the client’s perspective. This helps defuse tension and establishes respect.

Effective techniques include:

• Using straightforward, jargon-free language
• Clearly explaining the market or underwriting factors behind the increase
• Avoiding defensiveness or rushed explanations

According to guidance published by the National Association of Insurance Commissioners (NAIC), clear and timely communication is a key factor in maintaining consumer confidence during pricing changes.

Position Yourself as an Advocate

Clients are more likely to stay when they believe their agent is actively working on their behalf.

During a rate-increase call:

• Review coverage to confirm it still fits the client’s needs
• Discuss available discounts or adjustments
• Compare alternatives without pressuring the client

According to Insurance Journal, proactive policy reviews significantly improve customer satisfaction and retention, even in hard market conditions.​

Focus on Value, Not Just Price

Insurance agents often underestimate how much clients value guidance and expertise. Use the call to remind them what they’re getting beyond a policy number.​

Highlight:​

• Claims support and advocacy
• Risk management advice
• Ongoing service and availability

Customer communication studies from McKinsey & Company show that customers are far more likely to remain loyal when they understand the full value of professional service—not just cost.

Turn the Conversation Into a Relationship Check-In

Instead of rushing through the rate-increase call, treat it as a scheduled touchpoint. Ask open-ended questions about changes in the client’s life, business, or risk profile. These conversations often uncover opportunities to improve coverage and deepen trust.

Strong customer communication isn’t reactive - it’s relational.

Investing in Skills That Drive Retention

Mastering the rate-increase call is a learned skill, not an innate talent. Insurance professionals who invest in communication training, ethics education, and client-service best practices consistently outperform peers in client retention.

Continuing education doesn’t just satisfy licensing requirements; it equips insurance agents with practical tools to navigate today’s challenging market with confidence. When you approach the rate-increase call as a chance to educate, empathize, and advocate, you transform a difficult moment into a lasting retention win.

Are you an insurance professional who needs to complete your insurance continuing education but doesn’t have the time? FastrackCE can help you get all your life and health and property and casualty continuing education credits done in one place and at your convenience. We offer online insurance continuing education courses in most states, covering a broad range of topics including most of the state-mandated courses such as ethics, flood, long-term care, and annuity training.