The #1 Reason Clients Leave Insurance Agencies & How to Stop Them

Reasons Clients Leave Insurance Agencies

The Main Reason Clients Leave Insurance Agencies

If we asked you why you’ve lost the clients you have, what would you say?

You might think you know the reason because you use exit surveys. Some exit surveys provide options like “don’t use the service” or “found a cheaper option”. These can actually be easy cop-outs for your clients and don't always show you the truth.

So why did they really leave? It actually all comes down to effective client communication.

Rocket Referrals found in a recent study they conducted that, of clients that leave you, 81% say it's 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.

How to Improve Client Communication

Since we know that the main reason clients leave an agency is due to lack of communication, it makes sense that simply finding relevant times to reach out can greatly enhance your client relationships.

Build trust with clients and improve your own communication skills at the same time by putting some of the examples we laid out here in motion:

  • 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.
  • Birthdays! This is an opportune time to reach out solely to wish them a happy birthday. Bonus points for handwritten notes—they’ll appreciate the gesture.
  • Age-related product or service. Think turning 26 or 65—reach out and share relevant information, liked Medicare options for 65+. Plan to reach out a few days after emailing the information to be sure they received it and to answer 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 start the renewal discussion. Send any paperwork (with instructions!) that pertain to the renewal in this email with your contact information front and center.

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! This makes it easy for you to maintain so your clients never feel neglected.

Using Automated Workflow, you can create workflows based around these examples above that will send an email to your client and set a task on your dashboard, if you wish.

Automated emails are an easy method of communication, and they're likely to increase client retention. However, it’s a good idea to add in a phone call every once in awhile, as well.

Here are a couple reasons to call and check in

  • End of year review. This is 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 analysis. Using your data, run some reports to see what cross-selling opportunities you might have. Reach out personally with phone calls, or handle this with an email campaign if the list is large.

Remember Why Clients Leave

Though price can be a contributing factor, remember that the #1 reason clients leave is due to lack of meaningful communication. So whenever you find yourself in a scenario where your churn is increasing/client retention decreasing, go back to the basics and simply reach out to your clients.

If this all hasn't been convincing enough, also realize that your clients are your biggest advocates. You can tout your services all day to potential clients, but that will never be more convincing than a happy client sharing their positive experience on your website, on social media, everywhere!

We hope we’ve planted some ideas into your head about how you can add a personal touch and encourage good communication between you and your clients using automated emails, phone calls, and even handwritten notes.

How can you get started? It’ll depend a little on what technology you're currently utilizing to manage your book of business.

With an industry-specific agency management system, you have organized client and policy records where you can easily and quickly identify communication touchpoints. With AgencyBloc, you have that plus Automated Workflow and Email Campaigns to make it all happen!

Start every client relationship off on the right foot with this checklist.

This free checklist, 7 Steps to Onboarding a New Client, helps you streamline your onboarding efforts and create a process that's both beneficial for you and your new client.

Download the Checklist

This blog was originally published on May 5th, 2016 and updated on April 23rd, 2019.

Kelsey Rosauer

By Kelsey Rosauer on April 23, 2019 in Client Retention

Kelsey is the Brand Manager at AgencyBloc. She plans and creates educational resources to help insurance agencies organize, automate & grow their business. 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


Get FREE tools and insights from AgencyBloc delivered directly to your inbox.