5 Retention Strategies Your Insurance Brokerage Should Consider

Tuesday, July 26, 2022
Written By
Zywave

Brokerages across the country are feeling the pinch of the hardening market and economic uncertainty. Your clients are looking for ways to save money and, as a result, are more open to shopping for cheaper insurance coverage.

In today’s marketplace, retention has become a challenge, and the value you bring to client relationships should be prioritised to minimise the effects. So, ask yourself honestly – how valuable is your brokerage to your clients? Are you replaceable?

The age-old adage of offering the best sales and service has become more minor and less meaningful in the eyes of your clients. Why? All brokerages claim to have the best sales and service. It’s simply not enough a viable value proposition anymore.

So, what is your pitch? What do you offer clients that give you a competitive advantage against all the competition? 

If you’re asking yourself this question, you might also ask what the ideal offering looks like.

Buyer Expectations

Insurance consumers have very high expectations for their broker-client relationship. Those expectations have heightened over the past few years due to poor communication, lack of resources, and historic conditions during COVID-19.

Buyers want a broker that offers more than a policy. They want someone who understands their business, industry challenges, and a broker who is focused on their success. They also want superior client experience.

Consumer expectations have transformed, requiring agents to be agile and adapt to the consumer. Buyers want fast, efficient online service, with resources available at the click of a button, 24/7.

In this article, we will provide you with five retention strategies to consider and how those strategies can improve your retention numbers, help you win new business, energise your renewal conversations, and transform your customer experience and value proposition.

#1: Focus on Value, Not Price

If you’re still focused on the low-bid sales pitch and banking on sales and service, it’s time to shift your strategy. It’s time to start telling a different story.

If this is news, ask yourself if those policies improve or hurt client relationships.

Offering the lowest price is uncontrollable and, therefore, an untenable long-term strategy. Outside of providing your client a policy that is less than what’s necessary, if prices go up, there’s always the possibility that your clients will go shopping.

Offering unparalleled value, however, is irreplaceable.

So, as an introduction to understanding your value proposition to your clients, ask yourself these three questions.

  1. Except for new client onboarding, claims, and renewal conversations, how often do you connect with your clients and emphasise creating positive touchpoints?
  2. Does your brokerage focus on educating your customers on regulatory changes, relevant market impacts, necessary compliance updates, and money-saving opportunities? Studies show that brokers who do so are more likely to secure renewals. 
  3. Do you offer your clients ways to save money or explain why their policy costs what it costs? Account executives who show their clients the cost drivers affecting their premium and provide long-term strategies to remove those cost drivers are more likely to secure renewals.

#2: Improve Your Renewal Conversations

We talk with clients every day about how to improve renewal conversations. We have five tips for more insightful, successful, and impactful meetings.

  1. Engage your clients with impactful, industry-specific content – Zywave offers an extensive library of content.
  2. Embrace client self-service – Even when brokers aren’t having renewal meetings OR sending automated communications, clients can self-service and have access to the brand 24/7 with Zywave’s Client Portal.
  3. Standardise Stewardship Reports – Communicate how you’re impacting your clients’ bottom line.
  4. Improve Your Brokerage’s Presentation – Put your brand’s best foot forward with professional, branded, informative presentations.

#3: Better Understand Your Prospects and Clients

If you want to serve as a trusted business advisor to your clients – and believe us, you do – the first step is having a deeper understanding of your clients’ business. But, many account executives don’t have the time, resources, tools, or money to deep-dive into your clients’ challenges.

Zywave’s Broker Briefcase and Client Portal offer both agent and client resources to understand better the challenges facing businesses in construction, manufacturing, transportation, restaurants, and many other industries.

You will have more successful renewal conversations when your clients feel like they’re solving problems with you.

#4: Be a Resource for Your Clients

You need to create more of what we call off-cycle touches with your clients. That means in between renewal season and outside of a claim. Regardless of your efforts, those experiences are often negative for your clients. Your focus should be on creating as many positive experiences with your customers as possible.

Zywave’s Broker Briefcase offers account executives access to high-quality, trusted content, including newsletters, employee training, workplace safety, mandatory compliance resources, and much more.

Brokers we talk to often don’t have the time to put together a client newsletter, checklists, guidelines, training documents, or valuable items that can help their clients. However, these are the helpful resources that your clients will remember when renewal season comes around.

#5: Create Stickier, Stronger Broker-Client Relationships with Upsell/Cross-Sell

If you’re a full-service insurance brokerage, the best way to grow your book of business and improve retention with current clients is to focus on upselling or cross-selling your clients.

This is not a particularly foreign strategy to most brokerages but accomplishing this can be challenging.

The key is proving to your clients that your brokerage is equipped, and your account executives are knowledgeable enough to handle their expanded business. If you’re offering commercial coverage for a client, prove your expertise with content, data, and insights. Zywave’s Broker Briefcase and Client Portal can help you upsell and cross-sell more impactfully using consumer insights, business profiles, and strategic content.

The post 5 Insurance Agency Retention Strategies Your Agency Should Consider appeared first on Insurance Broker Software.

 

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