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The Tool Agents Are Using to Increase Renewal Retention

October 17, 2016  |  Posted by Nick Peterson  |  5144 Views

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renewal-retention

Through the shifting terrain of the Insurance Industry, one thing remains constant; renewals are the heart of the business no matter how you slice it. Sure, bonuses can be earned from new business acquisition, but if more revenue stems from a preexisting book of business, it seems strange that we don’t invest more in it.

On average, for every $5 that agencies spend on attracting new business, they put only $1 into marketing for renewal retention. Although there are cross-selling tools available in addition to a laundry list of ways to keep current policyholders engaged, there is one strategy that MacNeill Group believes deserves special recognition.

Direct Renewal, the “direct bill” for MGA’s, is a new trend that our agent partners have recently begun subscribing to, and for good reason.

How has it helped MacNeill’s agents?

For starters, it has increased renewal policy retention by 7% since its inception this year. That is more money in agents’ pockets with less effort.

Here’s an example:

An agency has 8 renewals each month and the average premium is $3,500.  By selecting the Direct Renewal option, they are able to save 7 renewals a year. This accounts for $24,500 in premium or $2,450 in commission income.

Enrolling in a program like Direct Renewal serves two purposes.

While the design serves renewal retention, it also aims to advance new business premium in conjunction as the agent would no longer require resources for billing and collecting premiums for renewals written through MacNeill Group. MacNeill spear-heads communications and collections from the insured on the agent’s behalf.

Here is what MacNeill agents are saying about Direct Renewal:

“We love the Direct Renewal option. No more sending out applications, no more sending finance contracts. We really like how much time it saves us.” – Robert Macoviak, Oyer, Macoviak and Associates

 “Using the Direct Renewal program is of great benefit to our agency. It saves us time for our customer reps and also delivers to the client in an expedient manner! We love it.” – Danielle M. Healis, Killingsworth Agency, Inc.

Thanks to new the development of new programs, saving time and money has never been easier for agents.

Sign up for Direct Renewal here.

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