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

[MyGenericName123]

For commercial, around 10%.

You will probably be closer to 20% or even 30% when you start because you will be writing anything you can to pay the bills.

Then, if you are doing things right, you will then see them lower to 10%ish throughout the years.

This makes a lot of sense because the agent becomes more selective about what they're writing.

As I know you've been in the business a long time I was surprised to see your first post indicating 10-12%.

Thanks for clearing that up!

 

[BADTROUT]

For commercial, around 10%.

You will probably be closer to 20% or even 30% when you start because you will be writing anything you can to pay the bills.

Then, if you are doing things right, you will then see them lower to 10%ish throughout the years.

By retention standards we have always referred to these in a manner like 80% retention meaning we have retained 80% of the business. In your example of 10% being good, I assume by translating this to my vernacular you would be stating 90% retention and losing 10% (to things like death, moving, closing business, you losing the business to a cheaper quote etc)?

If I am understanding this correctly I think you are on the money when it comes to the rate improving with experience for sure...

 

[Markthebroker]

Ahh, I was using the other side of the numbers, but you guys figured it out. Yes, I mean losing 20-30% of the bizz in the beginning, then down to 10%ish. As in 70 or 80% retention to start, then getting up to 90%. That's what I mean, yes, thanks for clarifying.

 

[Dreamiekid]

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.

I write nothing but non standard business so my shit be canceling like crazy lol

My goal for these coming months is to have my email and excel spreadsheet "automatic" just having to click of couple of buttons and send out cancellations, late payments, and other stuff.