Can anyone give me a source as to the average length of time for personal lines retention for Homeowners/Dwelling Fire/Personal Auto/and Flood? Or what is it for your agency? I think it is 4 to 5 years.
Thanks for your help all....
Personal Lines Retention
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Mainemiss
- Insurance Journal Enthusiast
- Posts: 23
- Joined: Tue Sep 19, 2006 9:43 am
- Location: Augusta, ME
Re: Personal Lines Retention
It would make me terribly sad if I were to imagine that there is a standard retention period. We do our best to provide swift, friendly service and also to keep an eye on renewal premiums and shop when they rise more than a certain percentage. Our agency is ten years old this year and I would venture to say we have all the good business we wrote still on the books from the date we wrote it.
There is no reason for an account to leave unless they receive poor service and no premium relief.
There is no reason for an account to leave unless they receive poor service and no premium relief.
Re: Personal Lines Retention
Hey, CSP... Mainemiss is right. We have a small mom & pop agency. It was started in 1963 and now we are insuring the third generation of these clients. Lots of our policies date back to the 60's!
Obviously, some accounts you don't want to keep. But the good ones seem to want to stick around as long as the service is good and the price is fair. Sure, they shop around. Most will call and say... "I found it cheaper at ABC Insurance... what can you do about it?" This is where skills in retaining clients come in. Discuss the market ups and downs. Sell your personal service. Does ABC operate out of a phone booth? If they do leave, make sure they know you'll welcome them back. Many will come back after a year of poor service elsewhere, and they will appreciate you even more.
The point is, nobody really wants to go through the hassle of changing carriers and agents. It's a pain in the bum. Give they every reason to stay, and they will. Good Selling!
Swymmer
Obviously, some accounts you don't want to keep. But the good ones seem to want to stick around as long as the service is good and the price is fair. Sure, they shop around. Most will call and say... "I found it cheaper at ABC Insurance... what can you do about it?" This is where skills in retaining clients come in. Discuss the market ups and downs. Sell your personal service. Does ABC operate out of a phone booth? If they do leave, make sure they know you'll welcome them back. Many will come back after a year of poor service elsewhere, and they will appreciate you even more.
The point is, nobody really wants to go through the hassle of changing carriers and agents. It's a pain in the bum. Give they every reason to stay, and they will. Good Selling!
Swymmer
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independent guy
- Insurance Journal Addict
- Posts: 174
- Joined: Thu Dec 09, 2004 12:26 pm
Re: Personal Lines Retention
This is very true. We had one come back after 2 months of being gone this week. I wish they wouldn't leave then want to come back, but after they've gone down that road once, they come back to stay.wlunday wrote:If they do leave, make sure they know you'll welcome them back. Many will come back after a year of poor service elsewhere, and they will appreciate you even more.
The point is, nobody really wants to go through the hassle of changing carriers and agents. It's a pain in the bum. Give they every reason to stay, and they will.
We don't have many clients left from when the agency started in 1941 (that puts it at 67 years old). We do have at least one however! And her file looks and feels like an antique!