The book of business dictates the successes and failures of a given insurance agent. From the start, agents need to grow their book until it pays large enough dividends to thrive. They then need to maintain, service, and expand that book over the years. Too small of a book of business means an agent isn’t earning enough income. Unfortunately, a large book comes with its own challenges. Consider the following tips for managing a book of business of all sizes.
1. Focus on building a high-quality book of business at all times.
Not all insurance policies are created equally. Insurance agents should proceed with caution while building their book. In reality, this means quoting and binding high-quality insurance policies that protect clients. Too many agents quote bare minimum coverage and do whatever necessary to add a new policy to the book. This approach pays dividends at first but causes long-term shortcomings. Agents that take this approach will eventually find themselves dealing with errors and omissions as well as a book that rapidly sheds existing policies.
On the other hand, a high-quality book contains quality policies. Clients are insured to the proper limits, ensuring they’re protected from potential harm and losses. These customers are more loyal to a given agent and stay in the book longer. On top of that, they’re more likely to take further policies from the agent and craft a long-term relationship. A quality book of business with loyal clients leads to long-term benefits, to say the least. The end result is more money in the agent’s pocket from commissions.
2. Learn how to efficiently service clients and accounts.
In all cases, insurance agents need to service their clients and clients’ policies. The work doesn’t end after a policy is bound, and long-term customer service is often required. Most clients won’t need to call their agent every day, and some clients might interact with an agent once or twice per year. Then again, a small percentage of clients like to constantly engage their agent and request service. This particular scenario is unavoidable, but agents can implement processes to make such interactions quick and simple.
An insurance agent needs to efficiently service their clients and accounts. Therefore, the agent must understand how each insurance carrier operates and how policies with a given carrier are serviced. A deep understanding of how the carriers operate ensures the agent can service policies in the shortest amount of time possible. Clients enjoy quick and efficient service interactions. Plus, the agent benefits by focusing as much time as possible on other non-service endeavors.
3. Never forget to cross-sell existing customers and clients.
Acquiring new customers in the insurance industry often costs time, effort, and money. However, cross-selling an existing client requires no money and minimal time and effort. Existing clients act as warm leads, which agents can solicit on a semi-regular basis. It’s easy to cross-sell an existing client or acquire a referral from an existing client. Customer acquisition is tough in the insurance industry. For that reason, agents need to cross-sell their existing book of business for better results.
4. CRM software is the key to keeping track of everything.
All insurance agents need to utilize CRM software to manage their book of business. The best CRM systems allow agents to track clients, policies, and interactions. In the end, CRM software allows agents to control their entire book in a centralized location. Individual client notes help agents gather information about their clients and prevent errors or omissions. The software helps agents manage individual clients and the entire book as a whole. Without a doubt, CRM software should be considered mandatory.
Agents cannot track this information through any other means with any efficiency. CRM software is often worth paying for to acquire necessary features and capabilities. By properly utilizing CRM, insurance agents can run a smooth operation. They won’t lose track of their clients or to-dos. They can manage everything from new business to renewals and cross-selling. The simple fact stands that CRM software is the key to running a successful insurance agency.
Managing A Book of Business Isn’t Easy!
Taking care of a smaller book of business is often simple and straightforward. As the book of business grows, though, this task becomes more and more challenging. Insurance agents can make their professional lives easy by keeping these tips in mind. A quality book of business with long-term clients that are serviced properly is always desirable. From there, agents need to focus on keeping detailed transaction notes through CRM and cross-selling existing clients whenever and wherever possible. These tips can lead to a growing rather than shrinking book of business.
