If you are looking to start or join an independent agency, one type of income you may hear about is insurance policy renewal income. An insurance policy renewal is when your client decides to continue their current insurance policy with your agency and with the same insurance carrier. Many agents will typically not be paid renewal commission income or they will be paid a much smaller percentage of the renewal commission than what they are paid on new business commission. At Secure American Insurance we feel it is important to put renewal income back in the pocket of our agents. Renewal commissions are an incredibly important part of building a consistent stream of income on a book of business.
Clients want to renew their insurance with a great agent; so staying in contact with your clients throughout the year and providing excellent service is the key to maximizing your renewal opportunities. Renewal dates are also a great time of year to bring up additional coverages your clients may now need or want, that were not available in previous years - for example if they want to add identity theft coverage to their homeowners policy or maybe they just bought a boat they need to insure. Renewals are a great time to reassess your client’s risks and needs and adjust their coverages as needed. This is also a great time to educate your clients about the types of services, coverages, and carriers you have the ability to provide to them.
The key to keeping your clients happy is a balance of checking in regularly- but no too much. It’s good to be available for questions, concerns or just neighborly chats. Keep in mind your audience when you are sharing things online or when finding new places you enjoy - the best type of contact is a non-sales chat; make your conversations personal.
Renewals commission rates, changes in premium, and updates to coverages depend on the policy. It’s a good idea to check in with the insurance carriers regularly on any changes to coverage your clients may have at renewal. Policies renew at the end of their policy period, which is generally 6 or 12 month periods. It is a good practice to make sure your clients are aware of those upcoming dates. We suggest setting up automatic email reminders to go out to your customer as well as you, in order to stay on top of your upcoming renewal dates.
For clients, this is a great time to make changes to policies, add or remove coverage and verify their discounts. As an agent be the expert and do your research before starting your renewal check ins. A great point of practice is to send out a reminder email so the client has a chance to respond with any questions or life updates. This gives you time to get those questions answered and provide the answers to your clients.
Renewals are a great way to build a stream of income and build your business, but remember in order to keep those renewals rolling in you need happy clients. Finding ways to communicate and service your clients is an important part of building your income. Advocating for and educating your clients is the best way to express your gratitude, while also ensuring they are prepared for anything through excellent coverage.