Page 37 - COVID-Proof-Your-Agency
P. 37
Chapter 5 – Move into the New Normal | Blew, Caldwell, Masiello
fewer miles driven in personal autos. However, the premiums will rebound as the
economy improves after the crisis. Keeping your policy count high will pay off in the
long run. You must focus with great deliberation on this to minimize losses for any other
reason than clients who went out of business. There has never been a time when focus on
retention was more important.
3. Close Ratio: Look at your new business close ratio and share it with your producers. Are
they focused on the right target markets and approaching the right carrier for the risk?
COVID-19 has forced many industries and individuals to change the way they do
business or to evaluate their buying habits. A deeper dive into closing ratios will uncover
trends that will impact your marketing efforts. Prospects and clients are going to be
focused on cutting costs as they never have been before. You simply cannot fail to
remarket business and focus on maintaining a high new and renewal business close ratio.
4. Mix of Business: Look beyond the split of business between personal and commercial
lines. Look at the profile of each line of business and understand the makeup of your
book of business. Are you heavy in personal auto and light in homeowners and dwelling
clients? Do you have too many restaurant clients and not enough contractors? You should
also look at your mix of products and look for the opportunity to balance your exposure
to loss. This will help you stabilize the profitability of your book.
5. Policies per Client: Account rounding leads to greater retention. You need to mine your
AMS for opportunities with your current clients. Look for trends in the type of products
that have not been offered to the client. Your staff has been working closely with your
clients during the pandemic. They will be able to share what type of policies or coverages
were the greatest concern to the client. Did they have the coverage? Were they asking
33
