Why Policy Reviews?

As an insurance agent, there are generally three objectives that you have for your agency: growing revenue, building agency value, and increasing profitability. The very best way to achieve these objectives is to focus on strengthening your relationship with your current customers. By doing so, you will:

  • Increase policy holder RETENTION
  • Identify CROSS-SELL opportunities
  • Earn credibility to ask for REFERRALS

How does retention help your agency?

  • IIABA lists customer retention as the single most important factor in determining an agency’s value.
  • It costs 7-9 times more for an insurance agency to attract a new customer than to retain one.
  • A sustained 5% improvement in your agency’s customer retention rate can double profits in five years.
  • Reducing customer defections by 2% is equivalent to cutting costs by more than 10%.
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How does cross-selling help your agency?

  • Cross-sell leads have an 85% close rate vs. internet leads that have 5% close rate.
  • Additional policies written with a customer decreases the likelihood of them defecting (increases retention). For every 2 additional policies written, the probability of cancelation drops by half.
    • Customers with 1 policy have a 45% probability of cancelling.
    • Customers with 3 policies have a 21% probability of cancelling.
    • Customers with 5 policies have a 11% probability of cancelling.
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How do referrals help your agency?

  • A referred first-year customer generates an average of 5X more revenue than a non-referred customer does.
  • Referred customers have the lowest acquisition costs of any sales.
  • A Referred customer has an average 92% retention rate over the first three years versus a 67% rate for a customer from any other marketing source.
  • Reducing customer defections by 2% is equivalent to cutting costs by more than 10%.
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Never done policy review meetings before? No problem!

Sign up for our FREE Agency Thrive training program to watch videos and download worksheets that will help take your agency to the next level!

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Get a Custom Policy Review Plan

Do you want to know how many Policy Review Meetings your agency should hold to monetize your current book of business? Get a Custom Policy Review Plan for free. When you do, we’ll also give you a step-by-step guide for how to implement a best-practice program used by some of the top agents in the nation!

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