Indys... what is your retention rate on a year by year basis?

I'll be licensed within a month. I'm curious what a healthy retention rate is for personal P&C. My mentor says he sees over 90% but I see other indys on the net complaining the cancellations and lack of retention is holding down their business.

Also, what measures do you take to ensure that your customers continue to do business with you? I feel like a few touches throughout the year can go a long way.
 
is it unreasonable to assume 80% retention rate on a year to year basis if you are above and beyond in terms of staying in contact with the customers and making them feel as though you have their best interests in mind?

I would think early on especially, when you're managing a small book of business, a good broker can find time to make their customers feel appreciated and taken care of.
 
On a carrier by carrier basis we get guilted and/or questioned if we fall below 75%... it happens based on whatever is going on with that carrier. On the other hand as an agency, we are over 90%. Someone is sure to get on now and talk about building value... another about price... the biggest factor is relationship and trust.
 
I am 100% commercial p&c, and I see around 10 or 12%. That includes everyone that goes out of business, retires, moves, or that I fire.

You are going to see higher numbers with personal insurance. You want higher retention? Sell commercial and do more account rounding like life insurance.
 
The majority of my book is personal lines. The personal lines portion is ~92% retention.

The small block of commercial is more volatile. Maybe because I'm not as strong in that space? That is my guess

I think the deciding factor is how you onboard households within the first 90 days. That window of time is proven to be the time to solidify the relationship and bring up other opportunities for serving them such as life insurance, disability, etc.
 
There is a surprisingly simple way to begin the retention process in P&C:
- During first presentation and sale, stress that your goal is not to sell a product, it's to become a long-term defensive coordinator.
- About two weeks after first sale, send a personalized letter of appreciation but also a summary of how you intend to serve... regular contacts, periodic reviews, etc.
- About six weeks after first sale, recontact to ask whether there is any way you could have done a better job thus far, and ask about any way you can be of service now.
With these touches, you have set the stage for relationship type contacts going forward and have already proven yourself as far more than a policy peddler.
Then be sure the periodic review becomes an ongoing tradition.
 
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