The growth of an independent insurance agency unquestionably comes from the writing of new business. But growth comes at a cost. The revenue generated by an agency’s renewal book is where agency profits are earned. And for as long as the industry is old, the advice given to agencies was simple; develop an efficient renewal process and profitability will follow. So why are agencies still struggling with their renewal book?
For decades, insurance agencies have grappled with how best to manage their renewal book. The insurance marketplace is
becoming ever more crowded with direct-to-consumer
insurers and national conglomerates. Time is running out to find the answer.
To succeed in today’s modern insurance landscape, efficiency must be coupled with a proactive approach when leveraging data. For insurance agents, this means investing in technology capable of examining data on every renewal and identifying if the account:
By accessing this information on-demand and in real-time, insurance agencies can prioritize in a smarter way where their agent’s time is spent. Multi-line accounts with a low risk of moving can be handled automatically. Mono-line accounts or those at risk of moving can receive a more hands-on approach. Actions that not only increase efficiency but also maximize profitability.
The challenge in today’s agency, however, is the renewal process has become far more complex. Consequently, the thought of any pre-renewal marketing or cross-selling becomes nothing more than an afterthought. Agents who embrace technology can capitalize on new business opportunities hiding just below the surface and become proactive advisors,
providing much better service and anticipating clients’ needs.
In fact, the right technology can increase your average number of policies per client. As your average policy count increases, so does your profitability per client and ultimately your agency’s overall profitability.
When seeking out next-level technologies to grow your agency, there are a few key components you should look for:
For insurance agents, it is more important than ever to leverage both proprietary and third-party data. Programs that bring the two together will allow you to focus on the clients with the highest likelihood of purchasing more insurance, which saves time and effort otherwise wasted on unprofitable clients.
Retention of your renewal book can be achieved when data from your agency is mined and presented in a usable way for agents to act upon. Smart technology is able to distinguish accounts at risk of moving away from your agency. By identifying at-risk accounts ahead of renewal, agencies can proactively market the renewal and increase the probability of retaining the account.
By integrating leading-edge technology, you can vastly improve your clients’ renewal experience and automatically uncover new business opportunities. Technology will automatically identify which renewal process best applies to each account. This means automatic renewals can remain low-touch while high-risk or mono-line accounts receive the attention they deserve. Smart algorithms can leverage data from your book and hundreds of third-party sources to streamline renewals, scan for coverage gaps, and customize policy recommendations.
Technology will continue to evolve and change the landscape of insurance. Insurance agents who can deliver high-touch customer service, in a way today’s savvy consumer is expecting, will reap the benefits of investing in technology solutions.
Independent insurance agents use Agentero to boost their revenue, save time, and deliver a superior customer experience. We integrate with your current technology to modernize your operations and position you for growth. Check out our website to learn more.