Are you feeling like your agency is on the remarketing hamster wheel? You keep running but not really see any progress.
I remember when my daughter was old enough to go on her first roller coaster and she was so excited. We get on and clickety, clack get to the top ready for that first drop.
Once that drop happened the initial thrill was immediately replaced by fear. She wanted off! She screamed for dear life but we were in it.
How many of us want off the current hard market roller coaster?
Just like a roller coaster we are in this hard market and there is no getting off mid-ride but we can make the ride a little smoother and choose to enjoy the journey.
The solution: Renewal Reviews to reduce the time and effort it takes to remarket accounts. It creates a customer-centric experience for your clients and protects your agency!
Renewal reviews are essential for insurance agencies to reduce the need for insurance remarketing. These reviews enable agencies to maintain customer loyalty by offering personalized service and addressing evolving insurance needs.
By assessing policyholders’ current circumstances, agencies can identify necessary policy adjustments, while minimizing the risk of policyholders seeking alternative coverage. Additionally, renewal reviews allow for risk assessment and premium adjustments, ensuring fair pricing without the need for remarketing.
Ultimately, by prioritizing renewal reviews, insurance agencies can build stronger relationships with policyholders, enhance customer satisfaction, and streamline their renewal process.
In this blog we will discuss the following topics:
- Understanding Insurance Remarketing: Definition and explanation of insurance remarketing, factors contributing to insurance remarketing, negative consequences of insurance remarketing for policyholders, and provide some examples illustrating the impact of insurance remarketing on premiums
- The Role of Renewal Reviews: Definition and purpose of renewal reviews, the importance of regular renewal reviews for policyholders, benefits of renewal reviews in preventing insurance remarketing, and exploring how renewal reviews can lead to policyholder saving.
- Conducting Effective Renewal Reviews: Steps to prepare for a renewal review, reviewing policy coverage and identifying gaps or overlaps, assessing changes in personal circumstances and insurance needs, gathering alternative quotes, and negotiating with the current insurer and tips for maximizing the benefits of renewal reviews.
- Communicating with Insurers: Effectively communicating with insurance agents or brokers, asking the right questions during renewal reviews, negotiating better rates and coverage based on the review findings handling objections, and advocating for fair premiums.
- Leveraging Technology and Resources: Utilizing online tools and resources for renewal reviews, using comparison websites to explore other insurance options, understanding the role of data and analytics in insurance pricing, and seeking professional advice from insurance experts or consultants.
- Case Studies and Success Stories: Real-life examples of policyholders benefiting from renewal reviews, How renewal reviews led to reduced premiums and improved coverage, and Success stories highlighting the importance of proactive renewal reviews.
Understanding Insurance Remarketing
Insurance remarketing refers to reevaluating and reissuing existing clients’ policies. It involves reassessing the risk profile of the insured and adjusting premiums accordingly.
The impact of insurance remarketing on policyholders can be twofold. On one hand, it may lead to increased premiums if the reassessment identifies higher-risk exposure. On the other hand, it can also result in lower premiums if the policyholder’s risk profile improves.
Remarketing allows our carriers to adapt to changing circumstances and maintain fairness in pricing. As your client’s trusted advisor, agencies need to work with their policyholders and regularly review their coverage, explore options, fill gaps, and seek competitive quotes when determined necessary to ensure they are adequately covering their risks.
Insurance remarketing presents numerous challenges in the current industry landscape. Firstly, customer retention has become increasingly difficult due to fierce competition, prompting agencies to employ remarketing strategies to reconnect with existing clients.
Secondly, the growing complexity of insurance products demands effective communication to educate customers on new offerings. Consumer expectations for a more personalized experience require agencies to strike the right balance to educate their insureds while building trusting relationships.
To be successful, agents must navigate these challenges adeptly and leverage innovative technologies to optimize their remarketing efforts.
While insurance remarketing can benefit our agency when done thoughtfully, policyholders may face negative consequences. It’s important to understand the consequences of remarketing: Inspection issues, loss of coverage or legacy endorsements, and increased premiums with no options to return to the original carrier.
In some cases, policyholders might feel manipulated or coerced into making decisions that don’t align with their best interests when a proper renewal review is not conducted. Striking a balance between effective remarketing and protecting policyholders’ is essential to ensure a positive experience and maintain trust in the agency.
If you need assistance with how to conduct a proper renewal review download our Freemium content now!
Insurance remarketing can have a significant impact on premiums, influencing how insurers price their products for policyholders. For instance, if an individual regularly searches for insurance and receives multiple quotes, may be deemed a higher risk.
On the other hand, customers demonstrating safe driving behavior via telematics devices might receive discounted auto insurance rates. These examples showcase how remarketing insights can both positively and negatively affect policyholders’ premiums, emphasizing the significance of the role of the agents to provide updates responsibly to ensure accurate underwriting and allow our carrier to provide the most accurate pricing.
The Role of Renewal Reviews
Insurance renewal reviews are comprehensive assessments conducted by agencies to evaluate existing coverage and premiums before the policy’s expiration. The purpose is to ensure the policy aligns with the customer’s current needs and risk profile. During the review, agents analyze any changes in the policyholder’s circumstances, claims history, and market conditions to determine appropriate adjustments to coverage and determine if the client is eligible for a remarket.
The objective is to offer personalized and cost-effective insurance solutions, fostering customer satisfaction, and retention, and providing adequate protection against potential risks. Conducting regular renewal reviews empowers policyholders to make informed decisions and maintain suitable insurance coverage over time.
Regular renewal reviews are essential for policyholders as they provide a crucial opportunity to assess their insurance coverage for accuracy. Life circumstances change, and so do insurance needs. These reviews enable policyholders to update their coverage based on evolving requirements, ensuring they are adequately protected against potential risks.
By analyzing current policies, agencies can identify gaps in coverage and provide custom recommendations to their clients. This reduces the likelihood of agencies engaging in aggressive remarketing practices to retain customers.
These reviews empower customers to make informed choices, promoting transparency, and fostering trust in our industry. They also protect your agency from potential E&O exposures by reviewing accounts for accuracy and documenting any rejections in coverages.
Renewal reviews offer agencies and policyholders the chance to uncover potential savings in their insurance policies. By reassessing coverage needs, customers can eliminate unnecessary add-ons and adjust deductibles, resulting in lower premiums.
Identifying new discounts or loyalty rewards for long-standing policyholders can also lead to substantial savings. Moreover, staying informed about market trends allows policyholders to understand the current market conditions and build confidence and trust in their agents.
Regular renewal reviews empower individuals to optimize their insurance, ensuring they receive the best value for their coverage while maintaining adequate protection. Embracing these reviews can lead to significant cost savings and financial benefits for policyholders and your agency.
Conducting Effective Renewal Reviews
Don’t overcomplicate preparing for a renewal review. Agents often want to dig into every detail of the account before connecting with the client. We are snorkeling here so don’t get caught in scuba mode!
This is the opportunity to quickly review the account and set up your renewal review form. This process should take about 5 – 10 minutes depending on the complexities of the account. Then pick up the phone and make the call! In many cases, you will not connect with the client but we will be fully prepared when or if they do call back.
Many times agents jump into problem-solving mode before even understanding the client’s needs. It’s important to remember we can’t care more about their insurance than they do.
Our role is to let them know we are there and that we care but the ball is in their court and it’s their responsibility to make the next move.
Once we connect with the client, build rapport and educate them on current market conditions. Help them feel confident in their decision to choose your agency and that you have a plan! Review their current policy coverage with them to ensure that information is accurate and that their coverage is still relevant to their circumstances.
Identify any coverage gaps and offer to fill them. This protects your client from potentially uncovered losses and also protects your agency when declined and documented in your system of record.
It’s important to remember that our clients are people too! Connect with them and discover what is happening in their world so you can analyze their risks fully. Slow down to speed up! Many times agents are trying to get to the next in line or rush to solve the “perceived problem”.
Our goal is to truly understand so we can adequately guide the client and present the options that are best for their current situation. It’s more than likely something has changed that allows for additional opportunities for us to step up and be our clients’ trusted professionals.
Having agency standards around what qualifies and does not qualify for a remarket is going to be beneficial for your agency. Be sure to share this information with your staff so they are empowered to have productive and educational conversations.
It allows them to make decisions that are aligned with your agency’s vision and values and sets expectations for our clients on a plan of action. When the determination is made that alternative quotes will be obtained, having current relevant exposure information will allow for a smoother quoting process.
We should have a good understanding of our carriers and know where we are going because our team should have a good understanding of where the agency is looking to place business and who our best carrier partners are.
We are looking for the best option to protect our client and this does not always mean the lowest premium. Using your relationship with your current carrier may also allow for some negotiation on their current policy.
Remember just as you are your client’s path of least resistance your carrier is your path of least resistance so having the conversation and giving them an opportunity to save a profitable account is always the best first step before remarketing.
Here are some key tips for maximizing your renewal reviews:
- Snorkel don’t scuba before connecting with the client
- Pick up the phone and make the call
- Document the file
- When/If you connect with the client build rapport and understand their current needs
- Build a plan with your client so they feel comfortable in knowing – You got them!
- Review their current policy for coverage gaps, enhancements, and potential additional policy lines.
- Offer them to the client. It’s okay if they say no but make them aware and allow them to make the choice that is best for them.
- Document to protect your agency from E&O exposures
- When the time is right, remarket the account
If you need assistance with building a plan for your agency book time with one of our ridiculously amazing consultants now who can help you implement a strategy that is right for your agency:
Communicating with Insurers
Effective communication with carriers is crucial in our industry especially now. Clear and timely communication ensures smooth policy processing, accurate underwriting, and faster claims resolution.
To communicate effectively, policyholders and agents should provide complete and accurate information, making the carrier’s job easier.
Actively listening and understanding carrier guidelines foster better collaboration with our carrier partners. Embracing digital channels for communication with our insurers expedites the process.
By prioritizing effective communication, policyholders, and agents can enhance their overall insurance experience and strengthen their relationship with carriers.
Asking the right questions during renewal reviews is crucial to ensuring comprehensive insurance coverage. Start by evaluating any significant life changes with your policyholders, such as new assets or family additions, to adjust policy limits accordingly.
Know your carrier’s available discounts or loyalty rewards to maximize savings. Seek clarification on policy terms, coverage limits, and exclusions to avoid surprises during claims. Explore alternative coverage options and their benefits or potential pitfalls.
Understand any changes in the carrier’s policies or rates that may impact premiums. By asking thoughtful questions, you can assist your policyholders in making informed decisions, optimizing their coverage, and fostering a secure and satisfying insurance experience.
Negotiating better rates and coverage after an insurance review involves leveraging gathered insights. Highlight any positive changes in risk factors, such as improved credit scores or safe driving records, to request premium discounts.
Discuss policy adjustments based on the client’s actual needs to avoid overpaying for unnecessary coverage. Show your clients loyalty and inquire about loyalty discounts.
Understand your carrier’s underwriting criteria to strengthen your negotiation points. Polite persistence and a willingness to explore options can lead to more favorable rates and tailored coverage.
Agents can skillfully handle objections and advocate for fair premiums by adopting a customer-centric approach. Actively listen to clients’ concerns, empathizing with their needs, and providing clear explanations about coverage options.
Present data-driven insights and educate on market conditions to demonstrate the value of the policy. Build strong relationships with carriers and underwriters to allow for effective negotiation on behalf of clients. Educate clients about risk factors and how they influence premiums.
Maintain open communication throughout the process, ensuring clients feel empowered and informed. By being proactive, knowledgeable, and supportive, agents can effectively navigate objections and secure fair premiums that meet their clients’ insurance needs. It’s important to remember that a fair premium does not always mean the lowest price.
Leveraging Technology and Resources
There are a plethora of online tools and resources to enhance the renewal review process. Utilizing and understanding the automation features of your agency management, customer management, and document management systems to track policy details, important dates, and agency metrics.
Explore insurance comparison websites to analyze competing quotes for better pricing options. Utilize data analytics tools to gain insights into client behavior and preferences. Engage in video conferencing to conduct virtual reviews with clients.
Embrace online communication channels and appointment-setting software for prompt and transparent interactions. By harnessing these digital resources, agents can streamline the renewal review process, offer personalized recommendations, and ensure a seamless and efficient experience for their clients.
Agents can leverage comparison websites to explore a wide range of insurance options for their clients. These platforms provide access to multiple carriers and their policies, enabling agents to quickly compare coverage, rates, and features.
Agents can input client-specific information to generate personalized quotes, tailoring insurance options to meet individual needs. This data-driven approach empowers agents to present clients with a comprehensive view of available choices, ensuring they can make informed decisions.
By harnessing the efficiency and convenience of comparison websites, agents can offer valuable insights and enhance their role as trusted advisors in the insurance selection process.
These rates may not always be accurate however it’s a great way to get an understanding of what is available, it saves time on data entry when information can be pushed into our carrier systems and allows us an initial data point to understand if remarketing is really the best option.
Insurance agents can leverage technology and resources to harness the power of data and analytics in insurance. Accessing vast datasets and advanced analytics tools enables agents to assess risk factors accurately, resulting in more precise premium calculations and targeted marketing.
Utilizing customer insights and behavior data helps agents personalize coverage options, enhancing customer satisfaction. Moreover, real-time data allows agents to monitor market trends and adjust strategies accordingly. Embracing technology empowers agents to make informed decisions, streamline processes, and provide tailored insurance solutions, ultimately strengthening client relationships and driving business growth.
It’s important for agencies to really understand and consider how potentially adopting new technology into their tech stack will enhance their business.
All too often we see “Bright Shiny Object Syndrome” where an agency hears about a new technology that they think will assist their business and jump on making a decision without really thinking through the processes of implementation and adoption. Will it enhance or compete with current technology?
To truly understand you must slow down to speed up and make sure you are fully understanding and utilizing the technology you already have implemented in your agency. You must have a plan on how to roll out and track adoption so your team knows how to be successful and the agency gets the largest return on its investment.
Engaging with consultants and professionals who have expertise in their area can be a great resource.
The value they can add to the initial implementation, roll out of the new technology, assisting staff with adoption, and helping your agency to obtain important metrics to ensure you are getting the most bang for your buck is an upfront investment that provides a great return on your investment because it’s done well, you have a trusted advisor helping you make the right decisions upfront (prepare vs repair), helps staff feel more comfortable with the changes you are asking them to make and minimizes frustration.
Case Studies and Success Stories
Real-life examples of policyholders benefiting from renewal reviews can be diverse and impactful. Here are a few:
- Auto Insurance Savings: A review of a policyholder’s auto insurance during a renewal review discovers that their driving habits have improved significantly. The agent is able to negotiate with the insurer, providing evidence of their safe driving history recorded through a telematics device. As a result, the insurer offers a reduced premium due to their lower risk profile, resulting in substantial savings.
- Home Insurance Coverage Enhancement: During a renewal review, a homeowner realizes that they have made significant renovations to their property. They communicate these changes to their agent and, as a result, receive an updated policy that reflects the increased property value and improved coverage for their home and belongings to adequately cover their exposures.
- Life Insurance Adjustment: A policyholder goes through a major life event, such as getting married or having a child. During the renewal review, it’s recommended to increase their life insurance coverage to ensure adequate financial protection for their family in case of any unfortunate event.
- Bundling Discounts: An agent reviews their client’s insurance portfolio during renewal and finds that they have multiple policies with different carriers. By consolidating their auto, home, and life insurance with one provider, they become eligible for bundling discounts, leading to cost savings across all policies.
- Added Discounts and Rewards: Through a renewal review, a policyholder learns about new loyalty rewards offered by their insurer for long-term customers. They take advantage of these rewards and receive benefits such as lower deductibles, accident forgiveness, or additional coverage enhancements at no extra cost.
These are just a few real-life examples that demonstrate the tangible benefits of renewal reviews, allowing policyholders to optimize their coverage, uncover potential savings, and enhance their insurance experience.
Many times just by digging in and really understanding the insured’s exposures and expectations we can improve coverage and reduce premiums. Personalized renewal reviews fostered trust, client satisfaction, and long-lasting relationships while providing optimal protection and financial benefits.
Our job as licensed professional is to understand and communicate what client is purchasing, allowing them to make the best decisions for their current situation and plan for future financial wellness by protecting their most valuable assets.
For several years I worked as an Account Manager in the Social Service and Non-Profit space. This is a great niche and I loved the clients I was able to work with. They all have big hearts and live each day to serve underserved populations but they also have tight wallets.
Many times executive directors and funding projects with their own money which makes analyzing their insurance program a bit tricky. They never want to spend more than needed, especially when that $10 a month for rental car coverage could provide another meal for the homeless or support their mission.
While conducting an annual renewal review with one of my best clients I identified they had removed their rental car coverage. The agency had the proper documentation and it was all stored in the system so they were protected so that’s enough right?
Many account managers would just breeze right through because the client declined and not offer the coverage again. I took the time to help the client understand what rental car reimbursement does for their organization, why it’s important, and what happens if they don’t add it.
The client agreed to go ahead and make the investment to add the coverage. Three months later their van was in an accident and they needed a rental to get their adult day care patients back and forth to their doctor’s appointments.
They had the coverage!
We can see by just taking a few moments to review the account the insured made a small investment that really paid off! They were so grateful that they didn’t have any interruptions in the services they provided to their clients.
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Conclusion
In conclusion, embracing renewal reviews is crucial for insurance agencies and policyholders. These reviews provide a valuable opportunity to assess and adjust insurance coverage to meet the ever-changing needs of our clients.
By conducting effective renewal reviews, agencies can reduce the need for remarketing, leading to cost savings, happier staff, and improved coverage for their policyholders. Leveraging technology and resources streamlines the process, allowing for better communication with insurers and access to a wide range of insurance options.
Real-life examples demonstrate the tangible benefits of renewal reviews, highlighting their role in enhancing customer satisfaction, building trust, and securing optimal protection.
As insurance professionals, embracing renewal reviews empowers us to create a smoother and more enjoyable journey for both our clients and ourselves on the insurance market roller coaster!
Encouraging policyholders to engage in regular renewal reviews involves proactive communication, educating them on the benefits, and providing personalized service. Utilize reminders close to renewal dates, highlighting cost savings and improved coverage potential.
Offer incentives, such as loyalty rewards or exclusive discounts, to those who schedule reviews. Emphasize the customer-centric approach of your agency, assuring transparency in the process. Utilize technology to streamline the process, making it convenient for your policyholders.
By showing genuine interest in their needs and circumstances, agents can foster a trusting relationship, leading to increased participation in renewal reviews and better-informed policyholders.
Empowering individuals to make informed insurance decisions is at the heart of conducting renewal reviews with their insurance agent.
These reviews provide a crucial opportunity to assess changing needs, ensure adequate coverage, and explore cost-saving options. By engaging in transparent communication and leveraging technology, agents enable policyholders to understand their policies better and make choices aligned with their unique circumstances.
Regular renewal reviews foster trust, confidence, and peace of mind, creating a symbiotic relationship between agents and policyholders. Through this collaborative approach, individuals can navigate the complexities of insurance, secure optimal protection, and confidently plan for a secure financial future.
Now that we are prepared for our ride and know what to expect it’s much less scary and we can enjoy the ride and all the twists and turns that our industry provides each day to learn and educate ourselves and our clients.
If your agency needs help getting started with how to reduce insurance remarketing by conducting renewal reviews our ridiculously amazing performance coaches are here for you!
