Articles · Client contact
Why Insurance Agents Need to Stay in Front of Clients
Insurance has long gaps between purchases, yearly renewals, and cross-sell and referral chances. That makes an agency a business that should stay in touch.
By TJ Larkin ·
- Long gaps between purchases leave you forgotten
- Renewals, cross-sell and referrals all depend on being known
- Agencies that reach out monthly tend to retain better
An insurance agency should stay in front of clients because the business runs on long gaps, yearly renewals, and clients who could easily forget who their agent is. Few businesses go quiet for as long as ours does, and few depend as much on being remembered when it ends.
The gap problem
A restaurant sees its customers every few weeks. A barber sees them every month. An insurance agent might hear from a client once a year, and often only when a bill shows up.
I was an agent for 10 years, and I watched this happen. A client signs up, gets a card in the mail, and then lives their life. They do not think about you. Why would they? Nothing is wrong, which is the point of insurance.
That silence is fine until it is not. If the first time a client thinks about you in eleven months is the day a competitor's quote lands in their inbox, you are in a weak spot.
Renewal is the moment of truth
Renewal is when clients compare. A premium goes up, a friend mentions a cheaper quote, and they start looking.
The agent who has been quietly present all year has an advantage. The client knows the name. They have seen the face. They might even have laughed at something the agent sent last month. It is easier to call a person you know than to cancel on one.
The agent who disappeared for eleven months is just a line item.
Cross-sell needs to be heard
Most agents want more policies per household. Auto clients who also have homeowners, life, or umbrella coverage are stickier and worth more.
But cross-sell depends on the client knowing what you offer. Many clients think "my agent does my car insurance" and nothing else. They do not know you can look at their home, their life coverage or their small business.
You can try to explain that on a renewal call. Or you can keep one policy line in front of them each issue, a little at a time, and let the idea sink in before you ask.
Referrals follow memory
Referrals are the cheapest new business there is, and they run on memory. A happy client will only refer you if your name comes up in their head at the right moment, like when a neighbor complains about their rate.
If you have been in their inbox twice a month, you are the name that comes up. If you have not, a friend recommends whichever agent they saw most recently.
We go deeper on this idea in staying top of mind, even passively.
What the industry data suggests
A Liberty Mutual study, reported by IA Magazine, put the average independent agency retention rate at about 84%. The same study found that among agencies with improved retention, 32% proactively reach out to clients at least once a month. Among agencies with flat or declining retention, 24% do.
Two cautions. First, this shows a link, not proof that outreach caused the improvement. Second, an 8-point gap is a gap, not a guarantee.
Still, it points in a direction every agent can feel. The agencies pulling ahead are more likely to be in touch with their clients.
The problem is time
Almost every agent agrees with this. Very few do it, because proactive contact does not scale by phone. You cannot call every client every month and also quote, service, and run an office.
That is why a newsletter fits so well. It reaches every client on your list in one send, on a schedule, without taking an afternoon. If you want the case for the format itself, see the value of newsletters for businesses.
What it looks like in practice
A good client newsletter for an agency is not a stack of policy tips. People do not open those. It is something entertaining, such as a funny meme, a crazy claim with a photo, or an insurance story worth reading, with your name and photo on top.
Once a month, a quick "time for a review?" nudge gives clients a reason to call you. In between, they just see you.
That is what we do at retentionletter. We send the issue twice a month under your name, and you do not have to write anything. Details are on the insurance page.
