We've advised hundreds of agencies across the country, rangingfrom businesses in their first year to third generationmulti-million dollar operations.

Over and over we hear the same issue: “My people won't get thejob done!” It's easy to blame Sally or Rick, but how is thatgoing to help you identify the core issue and fix the problem? Moreoften than not, we find the problem is the process, not thepeople.

Related: The secret to client retention

Fundamental processes must be in place

Most agencies we meet with have loyal and hard-working customer service teams with strongcredentials and years of experience. Commitment and grit go a longway, but there is always a ceiling of impact if fundamentalprocesses aren't in place.

Some agencies mention that their agency re-shops all policiesthat carry a 10% increase in premium when compared to last year.This is a great strategy if the economy is strong, marketdisruption is minimal, and renewals don't increase too much, butwhat happens when your renewal percentage dips below 90%? This iswhere agency owners, and managers, are quick to blame Sally andRick.

Stop the blame game! Look into your processes first.

Analyze & revisit actions

Written processes are vital to the success of a small business.Insurance agencies get stuck in how they do things and often don'tanalyze or revisit the reasons for their actions. Identifying,simplifying, and documenting the renewal process will identifyareas for growth, improvement, and allow your teams to create apositive experience with your clients.

Writing your processes down in checklist format and connectingthem with your mission will also allow you to pivot fromconversations that start with: “This is the way it's always beendone”, to “This is why we do it.”

Essential steps

Here are three examples of essential steps for a successfulrenewal process:

• Proactive vs. reactive: Your renewal processshould be on the offensive, not the defensive. Waiting for anincrease in premium before beginning the activity is a reactivemeasure. Does every client need a re-shop if their premiumincreased by 10%? What if they love the insurance company andwouldn't move even if there were savings? Instead of analyzingpercentages, change your process to include an automatic review ofthe renewal if the client had a claim in the last policy period.This will ensure a proactive step to follow-up from the claim andconfirm your client is satisfied. Chances are, these are also theclients who will realize a hefty premium change.
• Make the call early: There is nothingmore embarrassing than receiving a call from a client letting YOUknow they received the renewal paperwork and they are upset at theoffer! You've lost your advantage, and now you are scrambling tofind a better rate. Even if you do find a better price, your clientwill be shopping the competition and remember that you only actedonce instructed. Avoid the situation by calling your client atleast 45 days in advance of their renewal. The purpose of the phonecall is not to review the policy, but to let them know thepaperwork will be coming and you've already started the process tobegin the renewal! What a relief for the client to hear! They willbe glad you are on it and appreciate the communication.
• Appreciation and gratitude: Treat yourrenewals as if you are selling them again each year. You don't winonly on price to obtain their business in the first year, therenewal of their policy should not be a time to sell them on priceto stay. Show them sincere appreciation and gratitude forconsidering renewing their policies with your agency, and find outmore about how the last year has been for them personally andprofessionally. Walk a few minutes in their shoes before you focuson your goals. Help them solve a problem that has nothing to dowith your renewal commission, see how it feels to engage withoutdiscussing deductibles and comprehensive coverage.

Write down the processes

Most importantly, write down the processes. You should be ableto hand the process to someone without insurance training and theyshould be able to understand how to do the job. Your processes arenot a training program, but they will allow you to analyze youragency without biases.

Next year, when your renewal percentage increases, you'll have afun time debating which improved more: the people, or theprocess?

Related: What it takes to inspire insurance clientconfidence

Zack Gould ([email protected]) and MattNaimoli ([email protected])are co-founders of Southborough, Massachusetts-based G&N Insurance.