The Ultimate Insurance Agency Efficiency Overhaul

Insurance agency efficiency seems to be on everyone’s mind these days. With more call volume and the difficulty in finding and hiring licensed agents, many agencies are facing a burned-out and backlogged team — and insurance agency leaders are looking for solutions. In fact, many agencies, when we start working with them, are surprised to learn they either have too many team members or just the right amount — but no one can seem to keep up. When we engage with agencies, the goal is to understand the difference between industry best practices and the agency’s current operation. In this blog, we will review the top 15 operational inefficiencies we commonly see and how we approach fixing them.

Industry Best Practices

Each year, Regan Best Practices studies the top agencies in the country to identify key benchmarks. When writing this blog, here is the current guide you can reference for your agency. In it, you can find the average book per personal or commercial team member. This is the industry best practices number. To find your average revenue per person, you can look at your accounting numbers or your book of business report in your management system to identify the current revenue per team member for your agency.

One critical component of looking at best practices numbers is clearly identifying what kind of agency you want to be. Many agencies operate without clarity in their mission and vision, and this creates operational inefficiencies. 

The best example to illustrate this concept is the difference between types of restaurants. A 3-Michelin-star restaurant may have one staff member for every two guests. Capitol Grille may have one staff member for every five guests, while at McDonald’s you order on a machine and they have a much lower team-member-to-guest count. This works because the client understands what they are getting and paying for, and expectations are managed clearly. The McDonald’s worker is not trying to provide a fine dining experience.

Agencies can experience higher stress levels when there is a lack of clarity. Also, you will never be able to reach operational excellence without clarity.

Before you dive into insurance agency efficiency, ensure you are clear on what experience you are looking to deliver. 

15 Insurance Agency Efficiency Strategies

These are the 15 insurance agency efficiency strategies we review when we see agencies that can’t seem to keep up despite having more than enough team members. The great news is that, much like diagnosing an illness, you can find and fix agency operational inefficiencies. For many agencies, it may be a combination of several of these items at different levels of severity. Keep a running list of what you may need to look into or which of these may be obstructing your agency.

#1: Inexperienced Team

This one is tricky – as you can have a team with lots of time but still be inexperienced. Here are some areas we look at when it comes to experience: 

• Experience with your agency
• Experience with your carriers
• Experience with insurance in general
• Experience in using your technology
• Experience in coverage

By nature, inexperienced team members are slower or, more importantly, may avoid certain activities, which leads to more inefficiency. Let’s be honest, we rarely feel comfortable doing new things — you need to get the reps in. Also, I’ve found that many agencies assume their team’s level of knowledge, but here is how you actually know!

How to Build Experience

To invest in insurance agency efficiency, you first need to start by evaluating your team’s current knowledge level. You can do this through fun games, quizzes, or auditing. From there, you’ll want to build a training checklist. At APP, one of our values is learning. This means every month the team has to learn something — it could be a process, a skill, etc. We set a training calendar and then, at our monthly meeting, have a fun game to see how much the team comprehended the information.

#2 Team Members Working Below Their Pay Grade

When you really think about insurance agency efficiency, you’ll want to push the lowest-level work to entry-level team members or Virtual Assistants. Tasks like data entry, processing, checking and auditing, or following up on payments should be handled by a less experienced team member.

First, this is a great way to develop future agents, and second, if you’re paying a licensed agent to do non-licensed work, you’re losing scale. Many agencies believe in this concept, but they still need to review their agency processes and set very clear job descriptions outlining who does what and how to route work to the right team members.

Now, don’t be surprised if your team has control issues and doesn’t want to pass work along. Many agents prefer to operate as processors, or they don’t trust the process. This is where effective leadership needs to show up.

How to Reset Workflows

Your first step is to get very clear on who does what. The next step is to update your procedures and help roll them out to the team with clarity on how the work flows between different parties. Then you need to audit and refine the work. Remember, if someone is backlogged but continues to work below their pay grade due to control or trust issues, you have to work through this with the team member. 

#3 Lack Of Technology Use

We hear this all the time. I’m old school or my clients don’t want that. Here is the reality. Many insurance agencies invest in technology to improve their client experience or to help with insurance agency efficiency. Most insurance team members don’t love change. It takes them out of their rhythm and flow. However, your team needs to slow down to speed up and learn and embrace new technology. 

How to Ensure Agency Technology Is Used & Embraced

Your first step is to create a list of your technology stack. Then evaluate its usage – Hint: many of them have login reports. We also recommend that you review what features the technology may have. In many instances when something isn’t perfect team members may stop using it. However, in many instances problems get fixed and we don’t go back to use of the technology. 

Once all the technology has been evaluated, ensure that your processes are clear on how and when to use the technology. Then you will need to audit usage. 

#4 Unclarity on Who Does What

We started to address this above however, there is a bigger issue when it comes to insurance agency efficiency. One big area to explore is the workflow between producers and account managers. This can often lead to a great deal of inefficiency. I have seen many agencies where the producers will ask the account manager to shop literally every single renewal and they present maybe 20% of the remarkets. That is a huge waste of time. 

There needs to be clarity on who does what and then that needs to be put into action. There is always the time to ask for a favor however, this should be the exception not the norm. 

How to Get Clarity on Roles

We recommend that you update and clarify job descriptions to help boost insurance agency efficiency. Once you have the clarity on who does what you may want to create a quick cheat sheet and bring it up routinely on agency meetings and review activities to ensure everyone is following the process and plan. 

#5 Over Processed Processes

I can’t tell you how many times I have encountered this. When we are trying to figure out exactly what is causing all of the stress and backlog we start looking at what the team is doing and the processes are built out of fear vs. flow. 

One of the biggest areas we see inefficiencies is checking on non-pays and non-pay follow up, as well as remarketing triggers (we will dive deeper into this in a bit). The hard part about processes is that for many team members. they may not have worked at several agencies to see what is normal and natural. However, for every process we see over processed. we also see under processing. 

Using our process templates will help you see what may be more normal. 

How to Review Processes

This is something we specialize in at APP, so you can always reach out to us. However, I would start by just taking each process and identifying what you may be able to trim, trash, delegate or automate. So, many times we get stuck in the mentality of this is the way it’s always been done. We can really streamline processes when we are clear on what our technology can do and who should be focused on what. 

#6: The Automatic Remarket

Let me first start by clarifying what an automatic remarket is and how it can hurt your insurance agency efficiency. This is when based on certain criteria your team is requested to remarket the account. Generally, this is triggered by a rate increase. Our stance on this is clear as we have studied this strategy for a decade. 

Here is the math we have experienced: 

• Remarket 10 Accounts
• 5 of these accounts will actually call you back
• 2 of these accounts you will move
• That is 8 wasted time intensive remarkets going to waste
• We also make the client experience about price

However, if you instead call and do renewal reviews you make it about coverage, get cross sales, referrals and coverage improvements – if the review leads to a remarket you still come out ahead. 

How to Move Away from the Automatic Remarket

You will want to replace it with an effective renewal review. There is some planning that goes into creating an effective renewal review process. We recommend checking out our renewal review program for the best practices. 

#7 Your Book Dynamics

Every book of business has a different dynamic. Based on your book, there may be different amounts of service that needs to be provided. Here are a few items to review: 

• Call-in/Walk-in Payment Quantity
• Age 
• Coverage Levels
• Commercial Heavy E&S
• Non-Standard
• Frequent Coverage Lapses 
• High Walk-in Traffic
• High Remarketing Demands 

When agencies have a more needy book of business, you have to identify the best way to optimize and streamline or charge fees to ensure it’s profitable. 

How to Address Book Dynamics

The easiest way to address your book dynamics is to put in place Agency Standards. Agency Standards provide clarity on how business is written and retained. An example of this would be after 2 lapses in a year the client must go to EFT or Pay in Full. Or all new business and rewrites we automatically assume the client wants to get on EFT and allow them to request alternatives. 

#8 First Call Resolution

First call resolution is having your team complete as much as you can on the phone with the client. A great example of this is changing a vehicle while the client is on the phone with us. Why this works is everything is handled in one call, you don’t have to write it down to type it in and the client understands their premium change and can confirm they received the auto ID Cards. 

In addition, you ensure you get all the information you need and nothing gets forgotten. Almost all transactions can be completed by first call resolution. While it takes a bit of practice and a headset it is the #1 driver we have seen boosting insurance agency efficiency. 

Getting Your Team to Embrace and Execute First Call Resolution

If you want to focus on insurance agency efficiency, first call resolution is the name of the game. You can help train your team with our Agency Efficiency Program.

#9 Over Servicing Accounts

This one literally drives me nuts. I have 30 policies and my brother sometimes has 1. The challenge is that he gets more service than I do as he has several claims, you need to remind him to pay and my account seems overwhelming and you just don’t seem to have the time to get to me. The challenge is you are feeding the monster by overservicing the lowest level accounts. I can argue that you’re not giving fair service as my account gets underserved and other accounts get overserved. 

The bottom line is you are losing money on these accounts and they actually are not generally your ideal client. 

How to Reset Expectations

This one leans back to setting clear agency standards. You can also tier your clients to help identify where your team should spend their time. Be clear on who your team can release to your competition!

#10 Carrier Difficulties

Not every carrier is easy to work with. I have seen carriers that literally send boxes of paper endorsements every 6 weeks to agencies to process. You want to evaluate your carriers every year and identify a holistic review of their value to the agency. For example if there is a carrier that downloads, is easy to work with and competitive we may want to make them a core carrier. 

Having a list of core carriers and then carriers you only want to use if you have to help build relationships but also helps your team take into consideration more than just price. 

How to Establish Core Carriers

Start by analyzing your carriers. If you need a checklist our annual strategic planner has a carrier review section (we also have a technology review section). Once you review your carriers I would meet with them all and understand their appetite and vision for your agency. 

From there you can set your core carrier list and work with your carriers to let them know they are your preferred markets – you may be surprised by some of the boosted experience you get from the carrier. 

#11 No Agency Processes

Without clear processes and procedures everyone does what they feel is best. Some team members may follow up via email, some may call 15 times. Inconsistencies in process lead to insurance agency efficiency issues. 

In addition, onboarding new team members without defined processes makes training a longer experience. I always guide agency owners that processes also help empower you to hold people accountable as it’s very clear your expectations. Without the processes accountability is a struggle. 

How to Build Agency Processes

Sitting with a blank piece of paper asking what our claims process looks like may lead to more frustration than answers. At APP, we have an entire approach to building processes or you can purchase them on our website if you prefer to do it yourself. 

#12 Lack Of Leadership

I have a philosophy that people want to be told what to do. As people, we crave clarity, structure and a plan. When you try to lead by consensus you will always fall short. The leader exists to help paint a vision and a plan to get there and then believe in the team that they can achieve greatness. Without leadership everyone will identify what is easiest for them – what serves each individual team member may not be the greatest for the agency or the client. 

Agencies with strong leaders have a plan and believe in healthy accountability to the plan. 

Building Leaders

Leadership can be a bit of trial by fire – but it doesn’t have to be. We have leadership training for insurance agencies to help earn buy in, build strategic plans, and provide healthy accountability. 

#13 Limited Accountability

Accountability is hard but so is struggling with insurance agency efficiency. So many agencies we walk into lack accountability. When leaders may request they are taken as recommendations rather than requirements. Everyone is doing their own thing and there are no 1:1s, consequences or real hierarchy. But the reality is accountability is healthy and needed. 

We can’t run scared that someone will leave our agency if we hold them accountable. We should be more worried that they stay. 

How To Establish Accountability

When there has been low accountability and you want to change that, accept that there will be some push back. The team has learned and you have accepted that accountability won’t happen so when you switch it – people will test you. It’s ok – for most people after a few times of getting corrected they will get the message and help us move forward. 

#14 Lack of Training

We do not train our teams. Things change so fast in insurance. People get stuck in the way they have always done things. I recommend that you have a training schedule that you keep track of. This should include carriers, technology and skills training. 

For any agent who says they don’t need any training – you should look at them like they have 3 heads. Of course everyone needs training!

Training Calendar

You will always hear I don’t have time for training. But here is the reality: we don’t have time to not train. We recommend setting a training calendar and giving the team time blocks to complete it. 

#15 Outside Factors

This one may be the hardest of all the strategies to handle. Often these are uncontrollable and hard to see coming. This could be a medical issue, market conditions, changes to an industry, regulatory updates, book rolls, acquisitions you name it we see it. Too many agencies allow these factors to become excuses. 

Going back to great leadership – leaders need to create and rest the plan based on the conditions that are provided. 

Handling Outside Factors

What you know in advance you can prepare for in advance. For the factors that you know may come at you it is critical that you have a plan to reset expectations and call plays every day that make sense. For new factors that come out, the leader(s) need to hop on immediately creating a new plan to provide clarity to the team. 

Conclusion

Transforming an insurance agency from overwhelmed and backlogged to lean, profitable, and client-focused is entirely achievable — but only when agency owners and leaders stop treating symptoms and start diagnosing the real operational issues. 

The 15 inefficiencies outlined here — from inexperienced teams and over-servicing “needy” accounts to automatic remarketing traps, unclear roles, and the absence of real leadership and accountability — are not random frustrations; they are predictable, fixable patterns we see in virtually every agency that feels it “can’t keep up” despite having enough (or even too many) people.

The good news is that efficiency is not about working harder or hiring more licensed agents in a tight labor market. It’s about ruthless clarity: clarity on the exact client experience you choose to deliver, clarity on who does what and at what level, clarity on which processes add value and which exist only out of fear, and clarity on the standards and accountability required to protect your culture and profitability.

Agencies that commit to this work — defining their vision, aligning roles and technology, replacing wasteful habits with disciplined renewal reviews and first-call resolution, establishing core carriers and agency standards, and leading with conviction — don’t just survive rising call volumes and carrier challenges; they pull ahead of the competition. They free their best people to sell, advise, and build relationships instead of processing paperwork and chasing payments. They turn stressed, burned-out teams into confident, high-performing ones. And most importantly, they create an agency that consistently delivers the experience clients expect while generating the profit owners deserve.

If your team is backlogged, your best producers are buried in service work, or you know you’re leaving money and sanity on the table, now is the time to act. Start with the clarity question: What kind of agency do you truly want to be — a fast-food drive-through, a dependable Capitol Grille, or a Michelin-star experience? Once that’s answered, systematically address the inefficiencies holding you back. The tools, benchmarks, and proven playbooks exist. The only thing missing is the decision to lead the overhaul your agency has been waiting for. Your team, your clients, and your future profitability are all counting on it.

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