Agents are working harder than ever in today's challenging insurance environment, as insurers exit specific markets, reduce their appetites and cut capacity. At the same time, insureds want to know why their premiums keep increasing.

We talked to three agency owners about their perspectives and insights on client interactions and how to manage client relations in today's market.

1. Control the Conversation

Niki Henley, owner of Extra Mile Insurance Solutions, is a straight shooter who's confident and takes control of her client interactions.

"Let clients know that you know what you're talking about. Guide the conversation so that clients understand you're in charge. Once they understand this, they will listen to what you have to say," Henley explains. "If you let the client control the conversation, you will lose control every time."

During her discussions, Henley asks prospective clients about their pain points and keeps them on track so they aren't spending time talking about how their current agents are failing them or how a claim didn't go the way it should have.

"I try not to allow the conversation to be a drama session about things that have nothing to do with what we're discussing," she says.

Henley also notes that clients who ask the right questions are genuinely interested in building a policy that will protect them and will listen to you and take your suggestions.

"Those who push back and ask the hard questions allow your expertise to come through. Together, you can then solve their problems."

2. Have Direct Discussions

Brian Blakely, owner of Stonebridge Insurance, explains how he has direct and informative conversations about what's happening in the insurance market. He's a big fan of pulling back the curtain so people better understand what's driving increased rates.

"I'll go through how insurers plan for x number of claims but unexpected factors come into play, such as higher construction and repair costs and frequent weather-related losses," he says.

"They still may be unhappy about the situation, but appreciate knowing the reasons behind their higher premiums. Insurance companies are not just spending money on commercials and big CEO bonuses."

As simple as it sounds, when you explain that insurance companies have to make money to pay the claims, people get it.

"Insurers step in when disasters arise to rebuild our communities, homes and businesses," he emphasizes.

Blakely cited a recent conversation he had with a prospect looking for a homeowners insurance quote. The prospect was questioning the quotes she got online and from other agents.

"I explained that it's a strange time to buy insurance right now and there is no way to sugarcoat the price increases. You're insuring a house for x amount of dollars, which includes the dwelling and your personal property. You're also covering extra costs if you can't live in the house for a period of time after a loss. Your personal liability is covered, too. You think x amount is a lot of money compared to what it would have been last year or two years ago, and it is. But this is what you're getting for the premium, and you need to protect your asset."

3. Talk About Risk

Patrick McBride, founder and agency owner at The McBride Agency, discusses risk with his clients so they better understand what insurance is all about and the pricing behind it.

"Insurance is nothing more than the transference of risk. And the riskier you are, the more expensive the insurance is," says McBride. "I think this gets lost in translation, especially in a world where every advertisement says, 'Give me 15 minutes, and we'll save you a bunch of money.' You can't save risk. The only way to save money is to reduce risk. This is at the core of everything we do."

McBride makes a comparison to life insurance when discussing risk, which is easier to see in terms of the rate correlation to the probability of death during a policy term. However, the same should apply to all other insurance products.

"The car you drive, where you drive it, how often you drive it and other factors will impact your auto rates. The same applies to your home. Where you live, claims data for the location, 100-year weather patterns and how expensive it is to repair or replace the home all play a role in a client's premium. When the light bulb goes on, you can have a real conversation with a client about the value of insurance and how to mitigate risk. That's what we try to do every day."

McBride also notes that the process of client onboarding is critical.

"Clients should know what to expect from you when moving from their existing agency to yours. Outline the processes involved, from document signatures to account manager introductions, audit preparation, follow-up calls, renewal reviews and claims."

Keeping these things in mind, especially in a challenging insurance environment, will help you keep your clients' confidence — and their business — despite bumpy waters.