When it comes to insurance renewal, a strategic approach will increase the customer retention rate by 84 percent. Regardless of how long a customer has been with a company, it’s important to maintain a relationship with them. Whether that means a once-a-year renewal notice, an annual phone call, or a combination of both, taking advantage of these opportunities will ensure a higher renewal rate. Here are some tips to improve the strategy of insurance renewal.
Consider the competitive landscape. The competition is fierce, and many insurance agencies will offer lower premiums to attract new customers. While competitive agencies are willing to give new customers a huge discount, the insurance agency risk losing the customer to them. To maintain customer engagement and a high renewal rate, the agency needs to continue the renewal discussions. It is crucial to emphasize benefits of the current policy and sell the value of the customer service. However, this is easier said than done.
Understand the competitive market. In tough markets, relationships are key. Broker/underwriter relationships are key. It can be difficult to say no to an insurer if you know the insurer’s risk profile. If they are under pressure to raise their rates because of pressure from their upper management or actuaries, you’ll need to be proactive. Avoid promises of flat renewal premiums. If the broker makes unrealistic promises, the client is left in a difficult position.
Follow your clients on social media. If your clients are active on social media, follow them and comment on their posts. Doing so demonstrates that you are engaged and have knowledge about the insurance industry. In addition to comments, you can share interesting news stories about the insurance industry. Educate your clients before renewal time by sharing news stories of interest to your clients. The benefits of this approach will be worth it in the end. Once a client becomes a client, he or she will feel more confident about your ability to deliver a quality insurance experience.
As an insurance agent, keeping your customers on the mind is essential for your success. Often, agents neglect the retention of their existing customer base, resulting in a lower retention rate than they should. This means that they must spend more money to acquire new customers and erasing the easy premium dollars that they’ve made during renewal. Customers stick with insurance agents who build a relationship with them. When you show them that you care about them, they’ll feel valued and receptive to your services.
Your insurance needs change as your business grows. Globalization and economic turmoil affect business conditions, so the need to protect the company changes, too. In some cases, your standard U.S. coverage may not be sufficient for a manufacturer exporting overseas. The product might be lost at sea, or careless handling during port unloading. Or it could be stolen at its destination. So, it’s important to evaluate the benefits of your insurance policy and consider your risk management strategy.