GIVE POLICYHOLDERS WHAT THEY WANT

Today’s insurance policyholders are more willing to shop, switch, and compare their options when looking for coverage. Luckily, they are also clear about what they expect from their agent in return for their loyalty.

Through a survey of insurance policyholders conducted by Vertafore, we know that price is a deciding factor for what independent agent to work with, but retention also hinges on whether agencies deliver personal guidance, proactive communication, and fast, reliable service.

With that knowledge, there are meaningful steps that you can take, and technology tools that you can deploy right now, to turn the dials that matter most to policyholders and improve client retention.

Cost

It’s no big secret that cost is the number one factor that policyholders use to make their decisions. What might come as a pleasant surprise is that more than one-third of policyholders say they’re not likely to switch agents over cost alone.

While the price of coverage is generally out of independent agents’ control, you can control the buying process to help win over cost-conscious clients.

Be transparent about what rates clients should expect and what factors affect those prices. And then make it easy for them to compare rates across carriers and get a quote.

Immediate actions you can take include reviewing your remarketing workflows, setting renewal outreach triggers, or proactively flagging clients who are likely to shop around.

Tech tools you can use: By using a comparative rater, you can show the range of prices carriers offer. Policyholders probably hear a sales tagline from captive carriers every day, and they’ve internalized the idea that they can go online, enter their information, and see a menu of coverage options and prices.

It’s possible to do that as an independent agent. Then you can have the conversation about what coverage is important, what the client needs, and where they can get the best rate.

Personalized guidance

Policyholders say their relationships with their agents are rooted in trust and the personal communication they receive is important to them: Sixty-two percent say they believe their agent understands their needs, and 64% say they’ve had no challenges or frustrations with their current agent.

Conversely, just 21% say they get proactive communication from their agent, and one in four policyholders would switch agents for a more personalized experience.

A quarter of policyholders are willing to be won over with a personal touch.

Increase your retention right now by simply increasing the cadence and type of communication you have with your clients. Keep the conversation going: Send birthday cards, make phone calls before renewals, and communicate when market changes happen. Those messages keep your agency top of mind—especially in a world where consumers are increasingly brand aware.

More pointed messages might involve sending tips about how to harden a home against wildfires or sharing a winter preparedness checklist with clients in specific zip codes. Policyholders tell us they want this personalized communication. You might send the only birthday card a client receives or share the advice they need to keep their family safe during a hazardous storm season.

Tech tools you can use: Several tools can help manage communication with a large client list. Communication tools integrated with your agency management system can help with proactive communication by building recipient lists from meaningful data instead of static mailing lists.

AI tools are also becoming incredibly useful for aggregating content by audience to make sure the most relevant messages get to clients that need to hear them. Together, these tools can make communication more pointed and meaningful and do so in a way that saves agents time.

[T]here are meaningful steps that you can take, and technology tools that you can deploy … to turn the dials that matter most to policyholders and improve client retention.

Reliable service

Great service builds retention in the moments that matter most. When policyholders need help, how quickly and smoothly an agency responds can make the difference between reinforcing trust and losing it.

Policyholders know this, too. Nearly one-third say they would switch agents for better customer service. We’re living in a same-day-delivery world, and clients are basing their expectations for customer service in insurance on their experiences with great customer service elsewhere.

In short, when a client calls, response time matters. Eighty-three percent expect to hear back from their agent within one business day and, within that group, more than one-third expect responses immediately or within one hour. 

Fortunately, you can start taking the most basic steps right now. Respond quickly, even with “I don’t know yet.” When a client reaches out, let them know you’re there, you hear them, and you’re working on their issue. 

For a more systematic approach, review your processes for intake and prioritizing service. Consider how information gets handed off and what your own expectations are for follow-up when the initial touch-point doesn’t resolve an issue.

Tech tools you can use: Technology that can help speed up customer service at scale include email agents—particularly those that integrate with your agency management system, and AI voice agents that can help with your inbound processes.

Email agents, like the one coming soon into AMS360, can identify the intent of an email and the specific actions that need to be taken on the backend, and then queue that work appropriately. The result is an automated email system that takes manual steps out of your inbound process so emails immediately become action items.

AI voice agents can help with 24/7 communication so your clients never run into a closed door. These can automate inbound processes and let AI sort calls by priority so junk is filtered out, urgent calls get handled as soon as possible, and nobody goes unnoticed.

The author

Doug Mohr, vice president of industry relations and partnerships at Vertafore, leads the firm’s team that looks towards industry trends and manages strategic partnerships, including the Orange Partner Program members and industry organizations such as The Big “I” (IIABA), Invest, ID Federation, and ACORD. Mohr brings over 40 years of software and technology experience having worked at companies that provide solutions to a variety of industries including insurance, healthcare, apparel, professional services, high tech, and manufacturing.