The #1 Reason Clients Leave Your Insurance Agency

Reasons Clients Leave Insurance Agencies

Why Clients Leave You

If we asked you why you’ve lost the clients you have, what would you say? Maybe you think you know why they left because you ask them in an “exit” survey. A lot of those “exit” surveys give options like “don’t use the service” or “found a cheaper option”. You can probably relate as you’ve had clients tell you they don’t feel they need the coverage anymore or that they’ve found cheaper coverage.

But why did they really leave? Rocket Referrals found in a recent study they conducted that 81% of your clients leave you because “they lack regular and meaningful communication” with you.

In fact, another study found that “only 44 percent of consumers had contact with their agent in the past 18 months.” Is this your agency? Can you say that you’ve had contact with each of your clients in the past year and a half? Hopefully, you can. If not, let’s come up with some ideas to help you maintain more consistent communication with your clients before they leave your agency, claiming “price” as the reason.

When Should You Reach Out to Clients?

In our eBook, The Ultimate Guide to Email Marketing for Insurance Agents, we highlight some email campaigns that you could set up to provide meaningful communication with your clients.

Examples of emails to send to clients:

  • Welcome emails. This is the time to make your first impression and set the tone for how you’ll communicate with your new client. Keep it brief, but send a quick “welcome to the agency” email with your contact information (email, cell phone, office phone) and let them know you’re looking forward to working with them. *Bonus points if you offer them the option to text you!
  • Birthdays! This is an opportune time to reach out solely to wish them a happy birthday. They’ll appreciate the gesture. *Bonus points if you send them a handwritten card wishing them a happy birthday!
  • Clients turning 65. Send these people relevant information on 65+ policies and invite them to contact you with questions. Plan to reach out a few days after emailing the information to be sure they received it and to open the floor for questions.
  • Policy renewal reminders. Send a friendly reminder that your client’s policy is up for renewal soon, and let them know you’d love to chat with them and discuss any questions or comments they have. Send any paperwork (with instructions!) that pertain to the renewal in this email with your contact information front and center so they can get a hold of you easily.

These are just a few examples, and you likely can think of many more opportunities to “check-in” with your clients. Good news is that all of these situations can be completely automated using email campaigns if you have an agency management system with these capabilities. These could also be set up with a third-party email vendor, you’ll just have to export lists from your database (Excel spreadsheets, for example) and import them into the system as you go. You don’t want to be sending to old lists or missing new additions to your book-of-business.

So, we’ve demonstrated that email can be an incredible tool to maintain a connection with your clients without being an annoyance. However, it’s a great idea to trickle in a phone call every once in awhile, just to check in.

Here’s a couple reasons to call clients and check in:

  • End of year check-in. At the end of the year to see if they’ve been pleased with their coverage (this applies to policies that don’t have an annual renewal, like life insurance). Many financial advisors hold annual reviews with their clients, and if you aren’t already, you could definitely offer this as an option to your clients. It’s a time when you can review their policy, find out if any additional coverage is needed and double-check that they’re satisfied with your service.
  • Cross-selling check-in. Take a little time and see if you have some clients who have life insurance with you, for example, but not long term disability supplemental insurance. They have LT/ST disability from their employer, but they’ve never mentioned whether they have it supplemented. Take this opportunity to call and let them know of some options you have for them. **This could also be sent as a mass email using a Cross-Selling report in AgencyBloc.

How to Get Started

We hope we’ve planted some ideas into your head about how you can improve communication with your clients. The main idea is that, though price can be a contributing factor, the #1 reason clients leave you is due to lack of meaningful communication. Think of it this way: if you aren’t offering your best service and taking the time to find gaps in coverage for your clients, others will. They may not always buy to fill those gaps, but they’ll appreciate the effort you put into this communication as well as the other examples we talked about.

Now, how can you act on this? It’ll depend a little on how you’re currently storing your book-of-business. You might find that identifying these communication opportunities within paper files or Excel spreadsheets can be difficult. That’s why insurance agencies are making the switch to agency management systems (AMS)—to provide better customer service. Within an AMS, you can assign tasks/activities and set up email campaigns to be sure meaningful communication is maintained. Bottom line: you have control over your contacts and policies, incredible insight into them, and can be proactive on these opportunities to build a client-satisfying communication machine.

See what AgencyBloc can do for your client retention:

AgencyBloc is an agency management system that helps life and health insurance agencies grow their business by organizing and automating their operations using a combination of an industry-specific CRM, commissions processing, and integrated marketing automation.

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Kelsey Rosauer

By Kelsey Rosauer on May 5, 2016 in Client Retention

Kelsey is the Marketing Brand Specialist at AgencyBloc. She plans and creates educational resources to help our customers organize, automate & grow their insurance agency. Favorite quote: "I am convinced that life is 10% what happens to me and 90% how I react to it." —Charles R. Swindoll  More articles


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