Why Health Insurance Brokers Lose Clients — and How to Stop It
A big concern for brokers is client churn, especially at renewal. Whether it’s due to increasing rates or a client feeling under-served, business loss risk is very real. Average client retention for the insurance industry hovers around 84%. Top-performing agencies have retention rates of 93-95%. Those who partner with a General Agent often earn higher retention rates. And it’s not just due to expanded renewal support.
Losing a client is not always about price. There are other factors that can trigger a customer exit. Among them are:
- Poor broker service/responsiveness: The ease and speed with which you resolve issues or respond to customers’ questions matters. Prompt professional support nurtures loyalty.
- Perceived value of relationship: If your customers believe you are someone they can rely on, they are more likely to maintain their relationship with you. If they do not, they are more susceptible to outreach by other brokers.
- Product and service quality: Are you offering dependable, high-performing products and services that meet or exceed your clients’ needs? If not, they may look elsewhere – or be open when others approach them.
- Inadequate communication: Nearly two-thirds (65%) of clients who leave their broker don’t reach out before departing. Conversely, 80% of clients who have a conversation with their broker during the year choose to stay.
- Whether your client has multiple policies: Clients with bundled coverage have significantly higher retention (up to 91%) as compared to those with a single type of policy.
- Brand reputation and trust: Honesty, transparency, consistent messaging, and tight information security nurture an emotional connection with your customers. That makes them less likely to look elsewhere at renewal and during other times, too.
How a General Agent Helps Brokers Retain Health Insurance Clients Year-Round
Partnering with a General Agent can help you attract, earn, write, and renew more business. And Word & Brown (W&B) is an excellent GA choice for seven reasons.
- W&B has been working with brokers for 40+ years, and we are known for delivering “Service of Unequalled Excellence.”
- We will streamline your business operations and deliver specialized support tailored to your – and your clients’ – specific needs.
- We can help you expand your products and services portfolio – and assist you with new carrier and health plan appointments.
- We take on many of your back-office activities: quoting, enrollment (alongside you or in your place), case installation, and proactive renewal support. All of this frees you up to focus on sales and growing your business.
- Our experts – paired with our tech – can help you more easily compare plans and find the product that best addresses the needs of your clients, their businesses, and their employees.
- Need to escalate an issue? We are here for you. We have experience working directly with carriers. We don’t wait on hold. Our dedicated carrier reps’ calls, emails, and texts are answered promptly. That means you get what you need to resolve issues – quickly and efficiently.
- We offer ongoing training support, including updates on evolving state and federal regulations. Thru the Week of Webinars and local NABIP chapters, we regularly provide you with opportunities to earn valuable Continuing Education Credits required to maintain your state insurance license.
Best of all, we do all of these things without reducing your commission.
The ROI of Broker Client Retention: Why Keeping Clients Beats Chasing New Ones
Remember that acquiring a new customer costs five to nine times more than retaining an existing one. Working together, we can help you retain more of your existing business. And we can help you attract new business, too.
Contact your W&B representative to learn more. Or, if you’re not yet working with us, we make it easy to get started. Register online today.
