7 Ways for Independent Agents to Recover Lost Policies

Independent agents have a nearly endless supply of suspects to solicit. They encompass almost every consumer and business in the state(s) in which you’re licensed. Of course, some make better prospects than others, and the more you know about them, the better. Unfortunately, the new business leads that you know the most about are recently canceled insureds.

In the dark days before the glow of computers, many agencies stored canceled policies in one or more filing cabinets called “the morgue” or some other equally macabre name. These records were seldom looked at after they were buried in some distant corner of a storeroom. Some dead files contained reminders of troubles that you were glad to be rid of, but others were quality insureds who only lately went astray.

Here are seven considerations for bringing the recently deceased back to life.

The sooner the better.The longer a person or business is insured elsewhere, the greater the odds they’ll stay away. So, react quickly to every cancellation. Formally decide if you want each ex-policyholder to stay where they are or if you want to try to get them back.

Why did they go? Immediately after losing a policy you want back, find out why it was lost. It’s not always pricing. Sometimes it’s an internal cause such as a personality conflict or a display of disinterest. Call, email, or send a client “exit survey” that, when completed, reveals their motivation to move. If you act promptly and the loss is the first of multiple policies, you may be able to stem the tide.

Maintain lost policy data. Keep records of each policy you lose. Track the neighborhood or industry, the CSR who lost the business, the losing and winning carriers and producers involved, policy type and tier, etc. Look for trends and make offsetting adjustments as needed. If you are losing business primarily to the same companies, regularly monitor their rates. Pricing is fluid for carriers, so you may be in a much stronger competitive position against them just a year down the road. If so, go back after these ex-insureds and aggressively resolicit their business.

Buyer’s remorse. The large national insurance marketers don’t retain every policy they take from you. After switching, certain people regret leaving their independent agent and want to return but are too embarrassed to ask. Have a formula in place for inviting these hesitant folks back.

Comeback testimonials. Resolicit desirable former insureds with true tales of redemption. Ask erstwhile ex-insureds if you can reveal to others why they returned to you. When they’re agreeable, send potential returnees a brief summary that highlights the reasons why those individuals came back.

Don’t give up. Just like it’s a mistake to stop soliciting new business prospects after one or two contacts, don’t stop going after selected ex-insureds. Do it repeatedly to demonstrate your earnestness. Regularly resolicit them mid-term and 30 to 60 days prior to their renewal date, using person-to-person re-contact methods, including phone calls, emails, letters, and social media (if you’re still connected).

Attitude counts. Your agency’s view of lost business starts from the top. If you look at it as a sign of failure to be buried and forgotten, this attitude filters down to staff personnel. Producers and reps won’t resolicit as many insureds as they should. Instead, look at the solicitation of a quality ex-insured as a fresh opportunity for the agency and the individual. And this time, you’ll go in with more knowledge about the prospect than you did the first time, increasing the odds of a happier, longer-term relationship.

Topics Agencies