As an independent agent, you know the truth: acquiring new clients is often much more expensive tha
n keeping the ones you already have. The old saying, “new business is king,” no longer entirely rings true. Today, retention is the new acquisition.
Holding onto existing policyholders has become increasingly critical for long-term stability and profitability. It cos
ts 7 to 9 times more to acquire a new customer than to retain an existing one. Across industries, even a 5% boost in c
ustomer retention can increase profitability anywhere from 25% to 95%. Additionally, retention can significantly increase an agency’s EBITDA, leading to stronger
valuations for those considering a future sale.
Unfortunately, many independent agencies continue to struggle with client retention. One of the biggest opportunities to keep clients lies in renewals, but without technology, keeping up can be a manual an
d error-prone process. Reminders about upcoming policy re
newals can be inconsistent or overlooked, communications about policy changes or available options can lack personalization, and tracking renewa
l deadlines often requires manually checking carrier sites and piecing together updates. The time this requi
res often increases the risk of missed deadlines, lapses in coverage, and eroded trust, ultimately leading to lost clients and missed revenue.
Consider this scenario: An agent is juggling dozens of accounts, and one client’s homeowner’s policy is coming up for renewal. The agent jots
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a reminder to follow up on a sticky note, but it gets misplaced, and the agent forgets to discuss it with the client
. Weeks later, the client receives their renewal notice and sees a significant premium increase. With no heads-up
from the agent, the client feels surprised and overlooked, and begins questioning whether they’re still getting t
he best value. Without an explanation or alternative options, the client shops around and moves to another local agent.
What could have been a simple conversation instead becomes a weakened relationship and potentially a lost clien
t. With renewals being both complex and critical, traditional pen-and-paper systems simply don’t cut it anymore.
Enhancing Retention Through Renewals and Personalized Service
With the right tools, agents can transform renewals from a reactive process into a proactive opportunity to engage clients and deepen trust. Technology can b
e used to automate renewal tracking, send timely reminders, flag at-risk clients, and highlight cross-sell or upsell opportunities, allowing agents to focus on meaningful client interactions rather than back-office tasks.
Here’s how renewal technology can help agents serve clients better:
Automate Remarketing Processes: Retrieve remarketed rates for at-risk clients automatically, eliminating manual carrier site checks, reducing errors, and s
aving valuable time.
Deliver Interactive and Personalized Quote Proposals: Present clear, tailored proposals with easy-to-understand options, helping clients feel confident and eng
aged while making retention driven by trust, not just convenience.
Streamline Policy Checking: Compare the latest endorsed policy against renewal offers instantly, flagging differences that would otherwise take significant ti
me to review manually. This saves hours, reduces oversight risk, and ensures clients receive timely advice.
Identify Upsell and Cross-Sell Opportunities for Personalized Service: Spot coverage gaps or suggest additional p
roducts based on a client’s existing policies, enabling proactive recommendations that reinforce agent value and strengthen relationships.
Empowering Clients with Self-Service Tools