Meredith B. Thomason, CISR, of Citizens Insurance Agency in Anderson has been named the 2014 SC Outstanding Customer Service Representative of the Year. This award is the highest honor in our state for insurance customer service reps who have distinguished themselves through contributions to their industry and profession. She was recognized at this year’s annual Education Awards Luncheon held Aug. 26 in Columbia.
Nominees are required to show a commitment to the industry through education, involvement and achievement as well as write an essay from the following prompt: It is generally agreed that new business AND renewal business are crucial to the success of an agency. Explain whether new business or renewal business are more important to the long-term value and profitability of an agency. Identify four ways a CSR, Account Executive or Account Manager can have a meaningful impact on the new and/or renewal business written by an agency.
New Business vs. Renewals
By Meredith B. Thomason, CISR
The debate has long ensued over which is more important to the success of an insurance agency, new or renewed business. Agency principals, agents, producers and insurance companies have long debated the issue. Thousands of dollars have been spent researching this, with one result. The success of an agency is dependent on both new business and renewed business. Both are crucial to insure the long-term vitality and success of an agency.
New business is essential for the growth of an agency. It is inevitable that over the course of a year an agency will lose a few accounts. Insureds move, businesses close and markets harden, so it is vital to have a steady stream of new business to offset the loss, continue to grow and create revenue. All business was new business at some point.
However, renewal business provides a steady stream of long-term revenue. Renewal business is an agency’s base, the foundation of the business. Much like the foundation of a home, the foundation of a business must be solid, strong and able to support additional growth.
The Account Executive, Managers and CSRs are an essential part of helping to establish a good, solid, strong foundation to the business. All new business and renewal business is marketed and serviced by the team members of an agency. To have a meaningful impact on both new and renewal business, Account Executives, Managers and CSRs need to know the needs of the client, have a knowledge of insurance markets, be diligent and most importantly have a desire to educate and serve the clients.
Each client comes to an agency with a specific need, insurance, but all are unique. The agency team serves as a resource for the client. The Account Executives, Managers and CSRs must have a thorough understanding of the customer’s needs. The risk to the client, type of business exposure, prior coverage history and coverage requirements are all necessary information to market, write, service and renew an account. It is also important to know what the client will expect of the agency in terms of customer service and coverage availability. Both are essential parts of creating and maintaining a long-term relationship with the client.
It is also essential that Account Executives, Managers and CSRs have knowledge of the companies they represent. Since coverage offerings can vary greatly between companies, the agency team must be familiar with the nuances of each company. If a company excludes products and completed operations, that would not be an ideal market for a contractor with that exposure. All members of the agency team also need to be up to date on the policies and practice of the companies the agency represents. The time to find out about coverage exclusions is not after a claim has been filed.
Account Executives, Managers and CSRs must also be diligent in educating themselves on the insurance industry, servicing accounts, marketing accounts and in obtaining new business. The insurance industry can be very competitive. In order for agencies to renew business and obtain new business, the agency team must put in the hard work necessary to stand above their competitors.
Most importantly, Account Executives, Managers and CSRs need to have the desire to educate and serve the client. The majority of clients have little to no knowledge regarding insurance. It is important for the agency team to thoroughly explain the policy coverage, policy exclusions and offer recommendations of coverage in a manner that is easy for the client to understand and provide excellent service to all clients.
Account Executives, Managers and CSRs who understand the needs of the client, have knowledge of markets, are diligent and have a desire to educate and serve the client will positively impact new and renewal business. A positive impact on business will create a successful agency.