There is a widely-accepted view about building new business: You bring ‘em in with price and you hold them with service.  If this is true, how come survey after survey indicates that less than 10% of agents conduct annual reviews for their personal lines customers?

“Agents owe their customers the advice and counsel that results from performing annual coverage reviews,” says agency development coach Frank Herberg, CLU. He is adamant on the subject. “It is important to do a superior job if a claim occurs; this is a prime time to show customers how well you can perform, and how much you care,” he says. “But claims are rare occurrences.  Policies renew every year.” 

He says that most agents do annual reviews for their commercial accounts, but a small percentage do them for home and auto policyholders. 

“Personal lines annual reviews help build a wall around an agent’s best accounts, their A customers,” Frank says, “and remember, those A customers are the competitors’ best prospects!”  

Why don’t more agents do personal lines annual reviews? 

The excuse that we hear most often is:  there are just too many of them; we can’t possibly reach them all.  Really?  Try a Customer Generated Inquiries (CGI) marketing process.  Have your CSRs send out “Call Me” cards 45-60 days before renewal. Place the same “call us at renewal time” message in every issue of your agency newsletter.

 We know one agent who makes telephone calls during daylight hours when his customers are unlikely to be home.  He doesn’t want to talk with them.  If someone answers, he hangs up.  What he does want to do is deliver this type of message to the customer’s answering machine: 

“Unlike most insurance agents, we offer an annual insurance review service for our customers. It is important that your insurance provide the protection you need and want.  Please call us to let us know if you would like us to do an annual review for you. There is no fee for this valuable service.” 

Here’s another idea from Frank Herberg: “Paint” auto and homeowner dec pages when you send them out at renewal time.  “Paint” coverage areas that you believe need upgrades or need inclusion with a yellow marker. Or, if you prefer, get some rubber stamps made up. These stamps could point out specific needs or concerns.  Red-stamp dec pages.  

Promote the fact that you do annual reviews in direct mailings to prospects and in your advertising. Make sure that you mention your annual review service when you install a new customer.  Post the fact in your agency reception area. 

Your annual review business process will help you attract and hold good customers.  And give you a competitive edge over 90% of your competitors!