Practices to Improve Client Retention in Your Insurance Agency

Last updated: 19 Jan, 2024 By | 6 Minutes Read

insurance client retention practices

The insurance sector faces numerous challenges when it comes to client satisfaction. Why? The insurance agency has a number of claims to process, policies to sell, and put in maximum efforts to acquire new clients.  But are you aware of the statistics that insurers spend five times more on acquiring new clients as compared to retaining customers? Well, that’s true! So why not focus on an easy and cost-effective way to enhance your overall profitability? Discover the strategy of ‘How Insurance Agencies can Increase Client Retention’ for cost-effective profitability with Insurance Support World.

To truly excel in this dynamic market, client retention has become essential for an insurance agency as your business reputation is always in the hands of your clients. Make them happy with quality services rather than focusing on quantity and be the number one player in the highly competitive market. 

How Insurance Agencies can Increase Client Retention to Boost Consistency

Enhance your customer network

Well, customers never leave their insurance company quickly. And as the year passes by your clients may come up with some queries regarding their policies or claims and it is obvious that they will contact you. Try to resolve their queries quickly by giving them a deep understanding of the policy or claims. More so, always stay ready with tailored messages to make your customer feel at home with your polite assistance.

As you improve your responding habits through emails, phone calls, office visits, etc., your client will evolve around to buy more policies. More so, if you offer some offers to the age group of 30 or 40, they will to stay with your insurance company and recommend their friends or family members to purchase a policy from you. This will ultimately increase your bottom line without putting in extra efforts in referral programs, etc. However, conducting a referral program once in 6 months is also an ideal option for insurers.

Diversify your communication modes

Always have a plan for communicating with your customers differently. It should be the top priority in your marketing strategy. Make sure you are at least having basic methods in your plan that includes:

  • Emails
  • Webinars
  • Handwritten notes
  • Social media posts or messages
  • Surveys

Stay consistent with this basic strategy and if you have a pro marketing team with “out of the box” thinking can help you with more ideas.

In this way, you can enhance your customer retention strategy, which in turn helps you to stay in touch with customers, who prefer a specific mode of communication.

Don’t forget that you are human

Every business deals with another business, and there are humans- not a robotic machine dealing with each other. So being sympathetic, empathetic, and authentic is what your customers look for. If you keep sending automated email replies or try to market your product that makes your customer feel that there’s no one on the other side and they get bombarded with irrelevant information.

So keep that personal touch always to nurture your customers as it plays a vital role in retaining your clients. Send personal emails as an insurance agency owner, allowing them to feel- that yes a human send them the message.

Give importance to Cross-selling

It is the nature of law: the better you sell your lines, the more your customers will retain. Well, for this I have an example, a company in the US sells the auto insurance policy at heavy discounts so that who couldn’t even afford can purchase those policies. Everyone thought that the company has gone crazy, but the reality was- to increase client retention rate.

Now just think, the policyholders might recommend this company to everyone, and you know today word of mouth is a real game changer.

According to a survey, the customer served with one product stays with a company for 18 months and if the customer is served with three products- the relationship is expected to last for 6.8 years. So always ensure that you add-on cross-selling factor by keeping insurance agency back office process managed for better client retention strategy.

Prioritize Annual Coverage Reviews

To retain your loyal customers, it is essential for every insurer to consider their annual coverage reviews- make it a priority. If you don’t have a conventional process for this, it’s the right time to sit with your squad and plan it now that:

  • Which customers should you approach for reviews- Best ones or everyone?
  • Do you have an email script to approach your customer network for annual coverage review?
  • What about posts on your agency’s social media account?
  • Educate your clients about the benefits of coverage reviews so that they could spare some time for it

This will help you to interact with your clients and let you know your drawbacks. If they feel that they didn’t hear from you since they signed the policy, then they will surely shop around in the future. If they get a better opportunity or option, they will definitely switch. Reach out to people at intervals to know where you lack and improve yourself.


Well, to make sure that your client retention rates are increasing- embracing any of the above-mentioned strategies can be an ideal way. If you do this, you are going to reduce processing time, increase profits and take your business to the next level seamlessly.

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