Back Retention

I am in the first year as an independent agents. I mostly write personal auto. My average monthly is $45k, but my retention is horrible. I just read in an article by IRMI how we should not call when we see the cancellation report, so how do I go about keeping the customers on my book?

Well, if that were my concern I would call them! Just remember...once you call one to remind them to make payment you have to call them all....Good Luck but, unfortunately, it's the nature of the beast!

I know the general rule is to avoid E & O claims by treating all the clients the same... However the yahoo's that wrote the rule about not calling clients when their premium is overdue are not business people... If they owned an agency and saw that their mom's policy, or their cousin's policy was about to lapse they would make the call! Why treat others differently. If your agency has a proceedure and policy in place to attempt to remind all clients of an overdue premium then you will not be called to task if you have repeatedly called a client, month after month, and then miss a month. It's been tried (in the courts) many times, and the real duty to pay a premium lays with the insured. Courtesy calls (or lack thereof) from the agency are deemed simply that... a courtesy! My agency has such a proceedure, has been in business for 40+ years and enjoys a tremendous retention. And, we've never had a client call "foul" because we missed a monthly phone call! You need to do what you can to retain your business. If you are in business, act like it, don't listen to the commentators that never sold insurance or ran a business that depends on customer loyalty! Just my experience. Swymmer

Boy!!! If you are missing a chance to get to know your customers and perhaps quote additional business you are sure missing out. Do you know how many children they have, their ages, Lots of potential here. If they don't know you, why should they do business with you.

The key to retention - most any "marketing" pro will tell you - is in the relationships. Your processes need to develop and NURTURE and Cultivate those relationships. Any broker can peddle a policy and aquire clients on PRICE. Thats why we feel Mercury Ins' largest grossing producer AIS - is one of our best sources for PL new business. There's one number to get a quote/policy and another # to get serviced. The people on either end of the line are dramatically deifferent. Its all good until you have something happen - the the rose is somewhat off the bloom. Not that they are bad - its just too big and too impersonal. Marketing Expert David Frey - who I feel is a Referral Marketing genius! recommends - as do others - you need to PING [touch] your clients every 20 days. Impossible you say? To expensive you say? Well - whats the cash flow look like over the avg lifetime value of a client on a book of business of $5m or $500k in revenue? Avg lifetime - 7 years. You need a system you can put on autopilot to do it successfully. I found that system - and its an insurance agents DREAM. I've been at this for 24 years on the P&C [and I do life as well] Retail side. Ive seen most all the gimmicks. Everyone touts CRM software [Customer Relationship Management] - but they dont come with a person to actually DO IT. Like print the high quality communications/mail pieces, stuff , fold, stamp, and take the bulk to the post office. Would you spend < $15 a year to drip on and nurture your top clients automagically every month, and have them truly feel you cared for their well being? It turns them into raving fans, and they talk about you to their friends and associates. All the best, Steve Aylor Insurance Solutions

Hi Steve What is the system that you are on? So the secret to retention is simply to keep constant contact with the customer?

Hi Steve What is the system that you are on? So the secret to retention is simply to keep constant contact with the customer?

Its a multi faceted issue and will require more than one silver bullet to cure. But CERTAINLY better and deeper client relationships is a critical component. 1. If your writing business that came to you to save $.50 - they might leave you for the same amount of savings. Try and obtain clients based on coverage service and knowledge - not just price alone. 2. How's the customer service? are the clients being chased off by billing problems, innacurate quotes resulting in uprates, so they're looking for the door at the first renewal? 3. Account stability ... are you writing above average policyholders - or folks who can barely afford to keep their policies in force? I have family in grosse pointe and birmingham - I know you're part of the country is being hit very hard financially as of the moment - so perhaps their finances cause some additional retention challenges. Send me an email, and I'll talk to you about some specific strategies, and systems you can implement - cost effectively - to help. Im working on a FREE Report at the moment illustrating how we take one carriers personal auto application - and because of its "unique-ness" leverage that into 10 different referral opportunities - all while building better client rapport. All the best, Steve Aylor steve@4morereferrals.com PS - Lakisha - thanks for joining the referral newsletter - I hope your enjoying it and finding value!

I am in the first year as an independent agents. I mostly write personal auto. My average monthly is $45k, but my retention is horrible. I just read in an article by IRMI how we should not call when we see the cancellation report, so how do I go about keeping the customers on my book?

First of all you have got to spread your wings a bit and you should write all their coverage not just their auto. Personal Auto is very competative and keeping in touch and making a relationship with your clients is going to be very important for you. And in your case - if you get a cancellation notice - call! This is your bread and butter walking out the door. Not every situation is the same for every agent. Good Luck to you!

[call Them People Seem To Forget That This Is A People Business I've Built A 60mm Agency Based On That Philosophy

[call Them People Seem To Forget That This Is A People Business I've Built A 60mm Agency Based On That Philosophy

Impressive accomplishment ... 100% Organic, or how many "people's" agencies did you buy / aquire?