10 best ideas for increasing retention
- Thread starter theinsurancelady
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Yes, many times. I believe its a regional thing, and probably only happens in the P&C side, specifically homes. In my area, when I have a mortgage company that isn't used to Bay Area pricing, they will want a home insured for the value of the loan, rather than the value of rebuilding the home. These numbers can be vastly different, and cost the insured a lot of money if the agent doesn't handle it correctly.
You have the opposite problem in other parts of the country, where rebuilding the home is frequently more expensive than buying a different one. I don't run into this problem, but I've talked to many agents that do.
So yes, usually at least once a month, I end up overinsuring someone so they can get their loan processed. I do this only after letting them know that I'm doing it. It's faster to do this than to try to get a lender to read the California law, especially when someone is trying to move into their house.
Dan
P.S. I'm not talking about an extra $50K on dwelling coverage, which is somewhat subjective, I'm talking about needed an extra $300K in coverage, usually twice the amount truly needed, because the lender wants it. It can't be used, no insurance company will pay more than it cost to rebuild a similar size/quality home, regardless of how much extra coverage they have.
- Thread starter
- #14
theinsurancelady
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I too have seen a few home policies overinsured. Maybe it's a California thing?
- Thread starter
- #15
theinsurancelady
Expert
- 43
What about guaranteed replacement cost coverage?
Not to many carriers in California offer this on home policies anymore. They lost their shirts back in the Oakland Hill fires. There are some old policies out there that have this, but not many. I believe there are a couple of carriers that offer it, but only on named peril policies.
Dan
We also use the birthday letter approach and it is redeemable for an ice cream sundae at one of the restaraunts we insure. Builds goodwill w/clients and lets them know we're thinking of them.
We also send a renewal questionnaire that lets them know we are shopping for them and also gathers info. useful to my agency for multi-lining and account rounding. Account rounding has been our biggest persistency builder.
Newsletter goes out quarterly and lists "Client of the month" section which is a $50 gift card winner pulled from our list of clients who sent us referrals that month(they each won a $10 gas card). Our Newsletter also features one of our business clients in a "Spotlight on Business" section that helps generate exposure for them. Newsletter has been a huge success for us because we keep it personal (photos, local news,etc) and we write it in-house versus the canned corporate issues.
We also send a renewal questionnaire that lets them know we are shopping for them and also gathers info. useful to my agency for multi-lining and account rounding. Account rounding has been our biggest persistency builder.
Newsletter goes out quarterly and lists "Client of the month" section which is a $50 gift card winner pulled from our list of clients who sent us referrals that month(they each won a $10 gas card). Our Newsletter also features one of our business clients in a "Spotlight on Business" section that helps generate exposure for them. Newsletter has been a huge success for us because we keep it personal (photos, local news,etc) and we write it in-house versus the canned corporate issues.
I was going to ask, "don't your provide a moral hazard by overinsuring a house by $300,000?" But then I read your last sentence. In my state if your house burns down the insurance company cuts you a check for coverage A, no ifs, ands, or buts about it.
Can't you explain to lenders the land has a value outside of the house? I mean I don't know what a city lot goes for in San Fran but I bet a helluva lot more than Casper Wyoming or the Irish capital of the West, Butte America (which also happens to be the birthplace of Eval Kenievel - RIP).
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Hey veterans out there. I've been working on my numbers lately and notice that our retention rate for our non-standard P/C book is around 73%.
What are your best ideas for increasing that number? We are currently doing nothing formal, so all ideas are welcome.
Thanks in advance,
Kassidi
Non-standard retention of 73% is pretty good. If you want that business to stick, make them go EFT. That will do more than anything else I bet.
jmmauthe
New Member
- 10
WOW!! Great advice on retention!! I worked for a cative branded agency in my first year plus of insurance and have just hit my 6 month mark at an independent agency. Therefore, my modes of retention were somewhat provided to me prior and not much thought was necessary to implement. However, now I feel like I'm in a whole new 'independent' world of customer retention. The birthday and anniversary letters are superb ideas, which was used at the agency I came from. However, the detailed information provided, by 1manshow, about their newsletter makes me want to find a client in our commercial lines to 'spotlight' or even provide coupons for others to go visit!!! A spark has now become a flame...look out for my wildfire!!! 
(Still novice & slightly) Discouraged agent, revived!!!
(Still novice & slightly) Discouraged agent, revived!!!
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