Taking a Proactive Approach to Insurance Renewal

Independent insurance agents typically earn a higher commission from new policy sales than they do from renewing current policies. Because of this, it’s natural for agents to want to focus more of their sales time on attracting new customers than on ensuring their current customers renew. 

However, that line of thinking is flawed. For one, successful renews ensure that you have a solid book of business that you can always count on — the income that will be there for you and your business on a regular basis.  

In addition, it’s significantly more costly to attract new customers than it is to retain current ones. That’s why it’s important for independent insurance agents to spend just as much time on making sure their current clients renew their policies as they do trying to land new ones. 

Here are some ways to take a proactive approach to insurance renewal to improve your success, and why it’s important to do so. 

Review Policies Early 

It’s important to reach out to all your clients around renewal time; don’t just allow the policy to renew — or the client to cancel — without reaching out to them beforehand. But, if you want to take a true proactive approach to insurance renewal, you should initiate these reviews early. 

Doing so will allow for enough time for you to have the proper discussions with your clients, giving them a chance to think about what you’ve discussed and then make any necessary adjustments. 

This review period is important because people’s lives change and, as a result, their insurance needs change. Initiating an early review of all policies well before they renew allows you to address any necessary changes.. 

Suggest Beneficial Adjustments 

During this policy review discussion, you should gather information about your clients’ changing life situation. Have they gotten married, purchased a home, had a child or experienced any other major life change since the last time you spoke? 

Understanding where your clients are in life will help you be a better advisor to them. For instance, you might be able to suggest life insurance if your clients recently welcomed a new child. Or, you might suggest an increase in their homeowners policy limits if they put an addition on their home. 

Being proactive about renewals will allow you to serve your clients as best as you can. 

Reconnect with Your Clients 

A good portion of your clients will not have gone through major life changes or require a major adjustment in their insurance policies. That doesn’t mean that these renewal discussions are a waste of time. 

At the very least, what these policy reviews allow you to do is reconnect with your clients, many of whom you may not have chatted with since their last policy renewal. Consistently engaging with your clients on a one-to-one basis helps to build trust and shows your clients that you truly care about them. 

It also helps you stand out from your competition — particularly the new D2C insurance companies that only provide their services through digital means. There are many benefits that these companies provide clients, but they can never provide the personal relationships that you can as an independent insurance agent 

Ask About Referrals 

Policy renewal conversations are an opportune time to ask for insurance referrals. Word-of-mouth is perhaps the most powerful form of marketing, and referrals serve as a great way for you to build your book of business without spending any direct money on attracting new clients. 

In addition, referrals are often some of the best leads you can get because they come from current clients who know and trust you with their business. 

When reviewing policies with your current clients, there’s nothing wrong with asking them if they know of anyone who might need your services. Chances are, some of your clients will know at least one other person who has been talking about buying new insurance or switching companies. 

When you establish a good relationship with your current clients, which you can do with these early renewal reviews, it’s easier to ask for referrals. 

Approaching insurance renewals from a proactive standpoint allows you to grow your insurance business consistently. It helps you maintain a stable “floor” of current customers while you layer new customers on top. 

So, don’t ignore renewals in lieu of attracting new clients. Make sure you spend just as much time proactively reaching out to your current clients before their policies are set to renew. 

Discover the Good Life  

At Good Life Insurance Associates, our experienced insurance sales associates are here to provide support and training for both new and experienced agents. To learn more about us, remember to explore our business support services. Or, to speak with a member of our team about your journey to becoming an independent agent, contact us today!  

Discover the Good Life