Many insurance agencies, when asked how to grow their business, will instantly look to leads to fulfill that need. What they don’t know, however, is that they are already sitting on (and probably ignoring!) a veritable goldmine of growth waiting within their current book of business.
The fact is that the top insurance agents, predominantly, focus on the number of policies per account, not simply on number of total policies. By turning their attention to the customers already in their book, these insurance agencies are better serving their current clients, which increases loyalty and retention, key factors in generating referrals.
The best policy to focus on in bolstering your policies per account? Umbrella insurance.
On the surface, it may seem like a stretch to consider the umbrella policy, with its low premium, a true vehicle of success within your agency. Did you know, however, that a client with an umbrella insurance policy is likely to be retained, on average, three years longer?
Assume the client in question already has auto and home policies with your insurance agency, and just added the umbrella policy. With an additional three years of retention, we can quantify an umbrella policy’s lift to your agency as what you will collect in premiums and commissions from all three policies over that time frame.
This 2 minute Video reviews the profound impact an Umbrella insurance policy has on your book of business. (Spoiler alert: Each Umbrella is worth $1229)
This amounts to nearly $1,200, and is why some insurance agencies have adopted a high commission to agents who sell umbrella policies, sometimes even higher than the first year premium. Knowing the full value of the policy makes this high upfront cost more palatable, and encourages agents to inquire and educate clients about umbrella policies.
The path to success is clear. Emulate the business practices of many of the most profitable agencies, and focus on adding policies to your existing book, including the umbrella insurance policy. You may find that even though you have switched your focus from leads, your book will continue to grow, thanks to referrals from satisfied clients.