Why are renewals so important for your insurance business?

As the insurance industry evolves, you’re focused on expanding your book of business by adding new customers and policies. These efforts are critical, but genuine growth is impossible without consistent insurance renewals and customer loyalty.

Obtaining the largest share of the insurance market is impossible if your customers do not renew their policies. To improve your renewal rates, you must first understand why customer retention is so important to your company and what you can do to increase customer loyalty.

According to HubSpot, the average insurance customer acquisition cost is among the most expensive industries for customer acquisition. That means that acquiring a single customer could cost your company hundreds of dollars in marketing, sales, and overhead. Given that the majority of insurance companies’ profit margins range from 3 to 10.5 percent, investing the majority of these margins in acquisitions is not sustainable. In the meantime, retention and servicing are not only less expensive than acquisition but also more profitable. A sustained 5% increase in retention can result in a double profit in as little as five years.

Keeping all these in mind, InsuredMine has always given immense priority to renewal and retention. That is why you get to access customized:

• Renewal Pipeline

• Renewal Automation

• Opportunity section (X-date)

How do you make the best use of InsuredMine for the renewal of policies?

Renewal Pipeline– Check out the Pipeline settings where you can auto-create deal cards before the policy expiration date. By default, it shows 60 days, which you can change as required. It is important to separate your personal and commercial deal cards and pipelines as well. Pipelines allow you to search for duplicate deal cards and merge them. In addition, you can also track your active, inactive, and future policies. In your renewal pipeline, you will have the history of the premium amounts.

Renewal Automation– InsuredMine also provides features that you can use for renewals. There include labels, pre-set templates, automated workflows, renewal pipelines, and renewal task templates. This allows you to set up automation for the renewal pipeline or engagement.

Monoline Policies– You also have the opportunity to cross-sell or up-sell to your clients with a monoline policy.

User Experience

Damon Cook,  Agency Owner of TWFG Insurance Services

Damon Cook runs a one-man army show. For him, following up with existing clients for renewal was a major concern. His expectation from InsuredMine CRM is to automate the renewal process. Before InsuredMine, Damon used a spreadsheet system to manage all his leads. When a client was approaching his renewal date, he would call the client or leave a message. Then, after a couple of days, he would follow up with the client. This resulted in several lost communication. He wanted to streamline this process.

How is InsuredMine helping Damon manage his renewal business?

“InsuredMine saves me 3 hours a day. I am now spending 50/50 of my time servicing/new sales vs. 85/15 on servicing/new sales. The 3 hours I saved allows me to find new business.”

Damon made the best use of the renewal pipeline in InsuredMine CRM where he utilized automation to better manage his renewals. Let’s take a look at his process:

1. A deal card is created 50 days prior to the renewal date

2. Consecutive email communication is sent to the client 45 days and 30 days before the renewal, informing them he will looking into their policy

3. Once reviewed, the contact will be marked with a label and further automation will be halted

4. Once the deal matures, it will be marked as won or lost