Renewal Strategies in Challenging Times

In today’s challenging times, retaining current agency business is more important than ever. Below are a few tips to help your agency retain its renewal business.

Be Out There Early

The producer needs to go see their clients at least 90 to 120 days in advance of the renewal expiration dates. If producers aren’t out there early, someone else will be.

What Should Be Discussed

Producers need to be prepared to discuss in the client renewal meetings what cost cutting measures can be taken to help the clients save money. It may be that higher deductibles, risk management and loss control activities can all be considered, as well as even self insurance, as long as it is done with eyes wide open.

Some clients are very cash strapped and producers may have to tell them what are the mandatory coverages and what is less important. If coverages for exposures will be eliminated, it is important that producers have the clients sign off on which policies or endorsements they no longer have, to protect the agent’s errors and omissions exposure.

What Else to Sell?

Evaluate what other insurance policies your clients may need but do not currently have. This could include business interruption, umbrellas, employment practices liability insurance, directors and officers liability, and/or cyber liability policies. Are there other lines of coverage with cross-sell opportunities (health insurance, personal lines, life products, workers’ compensation)?

What other services can be offered to help the client for a fee (loss control to improve their workers’ compensation mod factor, HR consulting work, risk management, etc.)

Clients pay more for health insurance than all property/casualty policies combined! It is always important to ask to quote the client’s health insurance, but producers should first be sure the client has some concerns about their current program or agent.

It is good to know what the client is currently paying and who they are insured with. The producer may not be able to beat what the client currently has and it is not good for the producer to waste their time or the prospect’s time. Prospective insureds will appreciate this and may give the producer a shot the following year, if they stay friendly.

Market the Renewal to Other Carriers

Producers may need to market the renewal to different carriers for various reasons. For example, if a client is insured with a carrier like AIG, the agency and client may still be concerned about their solvency, despite the government bail-outs. It has however, come to our attention with some of our clients that there may not be other carriers that can compete with AIG’s pricing for certain risks, so moving it could cost the agency the account. Another reason to move carriers is to be sure the client saves money, which may be foremost in their minds today.

Summary

These are challenging times for many of the agency’s clients, so producers need to be extra diligent in handling renewals to retain accounts.

Following the suggestions in this article should help improve retention of renewals while also showing the client the agency’s professionalism and concern for their business.