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The 6-Step Guide To Insurance Renewals


Without a well-crafted renewal process or the right insurance renewal software, you could end up losing big in the retention rates for your insurance agency. Without enough customer interaction or too many complications, your renewal process could actually cost you customers, not gain them. That’s why utilizing the right insurance renewal software in your retention program is so vital to the health of your insurance agency sales processes. 

Keeping your clients happy and retaining business through insurance policy renewals is the best way to boost your bottom line. The renewal process is a prime opportunity for insurance cross selling or upselling your products and services, soliciting valuable feedback, and solidifying relationships with your customers. Running an effective renewal program that consistently focuses on increasing your renewal rates by just 5% each year, can double your insurance agency sales profits in five years.

To make sure your insurance renewals come in strong each year, we put together this six-step guide to help you develop a retention plan that keeps your customers returning year after year.

Keep in Touch With Your Customers

Regular communication with your customers can improve your customer relationships and give you valuable feedback about your agency. Offer your customers a way to submit general feedback or conduct regular surveys for new or existing clients. Ask them why they continue to work with your agency year after year and give them the opportunity to suggest ways you can improve your service. Your insurance renewal software is perfect for the communication aspect of your retention plan. 

It is important to keep in touch with your customers throughout the year, not just at renewal time. Limiting contact to renewals can give the impression that you only care about collecting premiums. Set an account workflow that includes regular check-ins throughout the year, and reach out to new customers 30 and 60 days after onboarding to ask for feedback. 

Sell on Value and Overdeliver on Service

Most customers will want to control the cost of their insurance premiums as much as possible, but it is important to avoid letting price drive the renewal conversation. Get comfortable with explaining the value of your products and why they are superior to low-budget carriers. Over time, you’ll undoubtedly lose customers who are simply seeking the cheapest price, but you’ll also build a quality book of business filled with customers who value quality over everything else. 

These customers will expect first-rate customer service and honesty. Make a practice of meeting deadlines early and be forthright when you need to have difficult discussions. Your customers will appreciate the honesty, and you’ll solidify trust in the relationship. 

Your insurance renewal software is a great tool to help you keep up with the tasks surrounding the needs of your customers so that you can better serve them with the right, on-time action. 

Incentivize Customer Loyalty

When your customers feel appreciated, they will remain loyal to your business. Consider offering a discount for long-term clients to thank them for their business. You can also create a referral program and give a customer a discount on their premium for referring friends and family to your agency.

Or consider offering non-monetary incentives for your customers in the form of free workshops or consultations on insurance products or industry topics. In addition to being a great added value to your customer, you’ll also be positioning yourself as an expert in the industry. This can help you market your business and attract new customers while also giving your existing customers confidence in doing business with you. 

The insurance industry has an average customer retention rate of 84%. That’s significant when you stop to consider that in just about any industry, the top 5% companies hold the highest customer retention rates of 93%-94%. That means if you nail your customer loyalty program, not only will you increase your customer acquisition rates but you can also compete with the biggest names in the insurance industry. This is another area where your insurance renewal software can play a key role. You can use it to keep track of the tenure of your customers with your insurance agency and you can also track their lifetime value, and any discounts you give them.

Avoid “One Size Fits All” Service

It is important to understand that not all your customers will want to receive service in the same way. Customers who are less inclined to rely on technology will still expect a high level of personal interaction, whereas younger adults raised in the internet era will want to be able to shop online for insurance packages that meet their needs.

You’ll see the best customer retention rates when your agency offers a line of products that appeal to a variety of individuals and families. You must also make sure you and your staff are prepared to answer questions from all these groups. Anyone performing customer service should be thoroughly trained in all service lines and be able to speak confidently on the products. These are critical insurance agency sales operations, as well as insurance cross-selling strategies that your insurance renewal software can help you keep organized so you can grow your bottom line that much further. 

Simplify Renewing

If your process is too complicated or time consuming, your customers may forget to renew their policy or use the renewal period as an opportunity to go to another company. Offer automatic renewals and payments to make things easier for your customers. Having an online payment option makes it even more convenient for customers to manage their insurance policy renewals.

Your insurance renewal software should offer an advanced approach to your renewal process and it can help you determine the service needs of your customer accounts by marking accounts that need low levels of service and mark them for automatic renewal. It can also identify higher risk or mono-line accounts that could benefit from more interaction. 

Your insurance renewal software will use algorithms to analyze the data in your book of business and third-party sources to streamline renewals, identify coverage gaps, and customize policy recommendations. Because reliance on technology will continue to increase, you should invest in the right insurance renewal software today. 

Implement Technology and Marketing Tools

Most busy customers don’t have much time to pick up the phone to handle insurance renewals or ask questions about their coverage. Offering an email contact option gives customers the ability to reach out to you on their own time. You will, however, need to be sure to respond to email communication promptly. 

Having a website with an up-to-date FAQ section can help potential and existing customers find the information they need without having to personally contact your office. This also allows your office staff more time to handle business critical tasks. You can also implement marketing tools like email newsletters, social media accounts, or SMS texting to keep customers informed of updates on their policies and for insurance cross-selling and upselling opportunities. 

Analytics from marketing tools and customer surveys can give you insights that dive deep into your customer retention rates. Some tools are inexpensive and easy to use and can help make sense of data about your business and customers. Make sure you use your insurance renewal software to track the referral sources of new customers.

InsuredMine – The Right Insurance Renewal Software

We’ve made mention of the right insurance renewal software throughout this article and how it can be a game changer in your insurance agency sales efforts. That right insurance renewal software is Insuredmine. With a robust offering of automated features as well as a high degree of visibility into your agency, your team, and your clients – it’s easy to see why InsuredMine has been ranked the #1 insurance renewal software on the market. Try InsuredMine for free today.

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