When It Comes to Building Your Agency, New Business Is Important, but Retention Is King

January 1, 2020

Study after study show that increasing your client retention by even a small percentage can dramatically increase your business’s income and value.

LIMRA research indicates that almost 40% of U.S. adults have no life insurance in place. There’s a good chance that your book of business reflects these same numbers.

Selling life insurance is a great way to improve your rentention, while also providing valuable protection that’s incredibly important to your clients and their families. Many of your clients are mistakenly relying upon company-offered group life insurance as their sole source of protection. This insurance is at risk if your client changes jobs, is out of work for an extended period or retires.

By simply asking your existing clients if they’ve had their life insurance professionally reviewed, you can start a conversation to ensure they are adequately protected against an unexpected loss, while positioning you as a professional risk manager.

Unlike property and casualty policies, life insurance rates are locked in for a fixed time period, so your clients are less likely to shop around every 6 months. They’re even less likely to if they know you are watchin gout for them and taking care of their family’s needs.

Rounding out accounts is an important strategy to maintain high levels of retention and increase your income. Life insurance is a natural way to accomplish this. If you’re not asking your clients about life insurance, who is?