CARL VAN IS THE CEO OF INTERNATIONAL INSURANCE INSTITUTE AND THE AUTHOR OF “NEGOTIATION SKILLS FOR THE CLAIMS PROFESSIONAL.”  He has been providing training and education to insurance professionals since 1998. He was a prior guest on Adjusted in 2021 (The 8 Characteristics of an Awesome Adjuster). In this episode, he discussed how to develop crucial negotiation skills and connect with your customers.  

 NEGOTIATIONS START FROM THE VERY FIRST CONVERSATION: All the interactions with your customer throughout the claim will affect your credibility when it comes time to settle. If their interactions with their adjuster throughout the claim haven’t been pleasant, all opportunity to build trust is gone by the time settlement discussions commence.

NEGOTIATIONS ARE NOT JUST FOR SETTLEMENTS:  It starts at the very beginning of the claim when you need to gain cooperation. Sometimes, we may ask a customer to do something (such as signing certain forms), and they may not want to do it. Instead of responding with, “If you don’t fill it out, we are not paying you,” find out why they do not want to fill it out. Listen to why they do not want to fill it out instead of arguing with them. It is crucial that they feel heard and understood.

INSTEAD OF ARGUING, TRY ACKNOWLEDGING: Instead of arguing with their reasons, present the facts of the case. For example, if you have offered $40,000, and the customer says, “That is not enough,” ask them why they feel that way. If they state “that someone they knew received $100,000,” don’t argue. Instead, acknowledge it and get back to the facts of your case. Let them know you understand their point of view, and then tell them how you got to your figure. Present the facts, but do not present why they are wrong with their point of view.

KEEP THE FOCUS ON THE VALUE OF THE CASE, NOT THE DEMAND:  Instead of spending over thirty minutes arguing why their demand is unreasonable, keep the conversation on your number, which is based on the value of the claim. This is crucial, especially if there is attorney involvement. Many experienced negotiators treat the word demand like a tennis ball. Every time an attorney says demand, you say value. Don’t ask an attorney what their number is because it shouldn’t affect how an adjuster evaluates a claim, and it gives the attorney the upper edge in negotiations.

WORDS TO AVOID:  Do not use the word “offer” because it implies it is a starting point. Do not tell a customer, “I looked at your file.” Instead, say, “I thoroughly evaluated your case, and I have a very fair settlement I would like to discuss with you.” 

Do not state, “I had a chance or opportunity to review your file,” it implies you almost didn’t get to it, and it makes the customer feel unimportant. Be empathetic, and you will build trust with your customers.

MR. VAN PROVIDES VIRTUAL OR IN-PERSON TRAININGS TO INSURANCE COMPANIES AND CORPORATIONS: His trainings are extremely beneficial, and they are something that insurance professionals remember, even if the classes were ten years ago. For further information, go to www.insuranceinstitute.com or contact Carl directly at [email protected].