When it comes to the insurance policy renewal process, most agencies just aren’t very organized. Too often, busy staff neglect to reach out to clients well in advance of policy expirations. Then the clients either leave or feel forgotten. Likewise, surprise premium increases might catch them off guard.
A solid client renewal strategy can make or break client relationships — and retention. In this post, we’re going to talk about how to generate a client renewal process that can scale with your business. Establishing a replicable insurance renewal workflow will also boost referrals, since clients will be so impressed with what you offer.
Read on as we examine some common mistakes in the client renewal process — and how to avoid them. Then, we’ll explore how to design an outstanding insurance policy renewal process.
Common Mistakes in the Client Renewal Process
Several common renewal blunders can keep companies from securing clients’ ongoing business. Do any of these sound familiar?
- Not approaching renewals proactively. If you wait until the deadline is looming to start preparing, you’ll rush the process.
- Not personalizing options. If clients feel you’re presenting them with generic options, you might miss the chance to secure their ongoing business.
- Not contacting clients well in advance of their policy’s expiration date. This makes them feel like an afterthought.
- Failing to ask about life or business updates that might affect coverage options. If you drop the ball on this, you might miss the chance to cross-sell.
- Not providing comprehensive risk assessment. This can lead to compliance issues, overpricing, or underpricing.
- Making assumptions about what clients want. Like some of the above mistakes, this can lead to lost opportunities.
Consider that 65% of customers who switch agencies never spoke to a representative of the company after their initial policy was created, while 80% who stick around did talk to an agent before their policy expired.
All of the above mistakes frequently cause agencies to lose clients. The worst part is, that’s completely unnecessary. With thoughtful preparation, you’ll keep clients satisfied and loyal. As you systematize this process, it will feel more and more effortless over time.
Sometimes VAs bring great ideas for strengthening organization and streamlining processes. With their strong eye for detail, they notice opportunities for improvement that busy leaders and agents might miss. As I described in a previous post, a highly skilled virtual assistant named Annabelle helped one of our clients increase their customer retention substantially. She guided her team in getting more proactive about client renewal strategy, which led to a 10% boost in retention. Because of her skill in enhancing their processes, they promoted her to team captain within her first six months on the job.
Roles in the Renewal Process
Delegating clear roles in the client renewal process will help things to flow smoothly. Depending on how many staff you have, you could place people in these roles:
- Agent: Performs a review of coverage options and makes recommendations.
- Account manager: Acts as a central point of contact for customer accounts (and is sometimes called a customer service representative).
- Virtual assistant: Handles a wide range of support tasks, from completing forms to compiling coverage comparisons.
In some cases, the virtual assistant (VA) may serve as the account manager while the agent handles any tasks requiring licensure. Or, the agent may act as account manager with the VA’s support.
Whatever arrangement you create, the VA will dramatically enhance the process. They’re going to be far more organized and efficient than the typical agent or account manager, following a well-planned workflow. Because they’re so detail-oriented, they’ll miss fewer things and make fewer mistakes. Because they’re task-oriented, they’ll move carefully through the insurance renewal checklist. Since they’re so thorough, you’re much less likely to end up with a bad quote from inaccurate data. For all of these reasons, our clients typically see retention increase by 8–12% when they hire a virtual assistant.
Make sure all those involved are interfacing effectively throughout the process. They should meet to coordinate plans for renewal prep, especially for higher-profile clients.
Now, let’s move on to what the insurance renewal workflow entails.
Steps in the Client Renewal Process
A good renewal process will help things progress forward in a timely manner. Ideally, you’ll be using a CRM system that lets different team members see what stage you’re at in the process. The system should clearly outline key steps and who is responsible for carrying them out. Make sure your system flags when it’s time to start preparing for a renewal, too.
Let’s dive into what the process itself involves.
1. Conduct a Needs Assessment
Don’t make assumptions about clients’ current needs — various factors could’ve changed since the previous period. Instead, conduct a needs assessment. Here’s what this entails.
First, a virtual assistant can check in with clients about their needs in advance. Using a simple checklist, they can ask about the various types of changes that affect coverage in your sub-industry. Then, they can share detailed notes from the call with the rest of the renewals team. From changes in risk exposure to life updates, these factors can inform policy options.
Ask for updates on the client’s priorities, too. Check in to make sure the factors that were most important last year are still their priorities today. Are they currently more interested in saving costs or expanding coverage?
Look at opportunities for cross-selling as well. If they’ve been satisfied with their service, clients may turn to you for other insurance needs. The account manager or agent could follow up after the VA’s initial conversation with the client, if need be.
For commercial lines, this might occur 90–120 days before the policy’s expiration date. For personal lines, it might happen 60 days in advance. The complexity of a client’s needs may also affect the amount of prep time needed.
2. Review Coverage Options
Considering the factors that are most important to the client — like prioritizing affordability or maximizing coverage — the VA can start researching and compiling coverage options. If the client was on the fence about new lines of coverage, the VA can look for options for expanding coverage to give the client a sense of pricing and value.
The account manager can advise the VA on what to prioritize in this search. The VA will then sift through large volumes of data to target the most relevant options and packages.
3. Generate Coverage Comparisons
Next, the VA can compile coverage options into a concise, easily digestible format to share with the account manager. By summarizing these options in a spreadsheet, they’ll ensure the account manager or agent can easily jump in to compare them.
This level of organization can be a game-changer for client retention. When it comes to renewals, the typical account manager or agent experiences resistance to many aspects of the process. Reviewing the actual quote sheets for any given client can be incredibly time-consuming. They might be looking at quotes from a dozen companies at 5–6 pages apiece, totaling many dozens of pages. Instead of combing through them all, they procrastinate.
In contrast, a VA is a pro at managing high volumes of data. They thrive on using lists; they’re going to adhere to a deadline. They enjoy those aspects of the work, whereas agents and account managers usually don’t. So, having a VA on board greatly enhances your insurance renewal workflow, adding much-needed structure.
By sifting through and summarizing the options, the VA will equip the account manager to focus on making decisions based on the data. The account manager can jump right into analysis instead of wading through dozens of pages of information. Since they can see at a glance how the different carriers compare, they can quickly start making recommendations grounded in an understanding of the client’s current priorities.
In this way, a good VA helps an account manager to be more proactive by letting them focus on what they’re best at. In her agency, Annabelle sped up the coverage comparison process in this way.
4. Talk with the Client
With these coverage options in hand, set up a meeting to present them to the client. Consider whether the client prefers a virtual or phone meeting (or in person, if applicable). Avoid just sending options by email without discussing them with the client. You want to have the chance to answer questions and respond to any concerns directly.
If rates have changed, remember that clients leave not so much because rates go up, but because they feel forgotten. That’s what causes them to lose loyalty or positive feelings toward an agency. They think, You’re happy to take my money, but you don’t have the time to call me and tell me about what’s going on here?
So, explain the rationale for any premium increases. Note how changes to the risk landscape have affected premiums. If you do this in advance, clearly laying out the best option, most clients will trust that you have their best interests at heart. And you’ll continue building a positive rapport that helps keep them loyal. In contrast, last-minute notifications about policy changes will make them feel overlooked.
In your conversation with the client, check in about their preferences as well. How often do they want to be contacted, and how? Would they prefer a different type of payment plan?
After the renewal, send the client a thank-you note to show you appreciate their business. Remind them of new forms of coverage, how to access your client portal, and other key points.
Adding a VA to your team will help clean up your renewals process, letting your account managers or agents accomplish more with less effort. Instead of getting bogged down by prep work that causes them to procrastinate, they’ll focus on analyzing the options, making strong recommendations, and talking with clients about them. In these ways, building a structured client renewal process can boost client retention substantially.
Ready to talk about how a skilled virtual assistant can enhance your client renewal strategy? Set up a discovery call. We can walk through any aspects of the process — or other areas of business — where you most need additional support. With their level of organization and attention to detail, a VA will help streamline your operations in countless ways.