CEO LETTER: Strategies for Agency Owners Amid Economic Uncertainty
It may seem like the industry has been in a hard market for an extended period of time as the economy sorts itself out. Everyone, including carriers, agents and consumers, are feeling the pain of rate hikes, losses, and the readjustment period.
As an agency owner, how are you channeling your daily efforts into productive growth strategies to survive this period of uncertainty? Redirecting your energy into the things you normally can’t spend as much time on – the things that normally take a back seat to the things that take priority in your day-to-day agency activities – can be time well spent during this adjustment period.
Now is a fantastic opportunity to spend time on your existing customers by auditing their accounts and making sure they’re healthy and up to date. With record inflation, many of your homeowners’ clients are likely underinsured. In fact, a March survey from Property & Casualty 360 showed that a mere 9% of homeowners had considered adjusting their insurance coverage to account for inflation. So, this is a great opportunity to conduct policy reviews and make recommendations. Not only will it clean up your current book of business and make it more profitable in the long run, it will create long-term retention and increase referrals when things open back up in the future.
Even more importantly, during this premium adjustment period, find ways to lessen the pain of rate hikes for customers. If an insured is looking at a large rate increase, make sure you have rounded out the account, but consider offering telematics to help bring the premium down. The direct models are selling this option roughly 75-80% of the time as it can significantly reduce the premium impact to help retain your customer. You can also round out your accounts by cross selling your clients to provide your agency with additional revenue by using our Smart Start and Express Markets programs to sell life, commercial and specialty products. Commercial and E&S are growing at exponential rates!
Additionally, take this opportunity to work on your business. Invest in your agency and look into instituting some technology to streamline your agency’s operations. If you haven’t already, invest in some CRM software to make interacting with your customers easier and more efficient – for you and for them! Create automations for routine tasks like sending policy renewal reminders or generating quotes so you can free up agency staff’s time and energy to be spent elsewhere and ensure things don’t get missed. An efficient infrastructure not only saves time but also improves the overall customer experience.
Even during a hard market, there are plenty of opportunities for expansion and revenue growth if you’re looking for them! Right now, is the time to prioritize the health of your business, customer retention, and sustainable growth by enhancing overall client experience and setting the stage for your agency’s long-term success in the insurance industry.