We've advised hundreds of agencies across the country, rangingfrom businesses in their first year to third-generation,multi-million dollar operations. Over and over we hear the sameissue: “My people won't get the job done!” It's easy to blame Sallyor Rick, but how is that going to help you identify the core issueand fix the problem? More often than not, we find the problem isthe process, not the people.

Most agencies we meet with have loyal and hard-working customerservice teams with strong credentials and years of experience.Commitment and grit go a long way, but there is always a ceiling ofimpact if fundamental processes aren't in place.

Some agencies mention that they re-shop all policies that carrya 10% increase in premium when compared to last year. This is agreat strategy if the economy is strong, market disruption isminimal, and renewals don't increase too much, but what happenswhen your renewal percentage dips below 90%? This is when agencyowners — and managers — are quick to blame Sally and Rick.

Stop the blame game! Look into your processes first! Writtenprocesses are vital to the success of a small business. Insuranceagencies get stuck in the way they do things and often don'tanalyze or re-visit 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 this way.”

Here are three examples of what we see as the essential stepsfor a successful renewal process:

Proactive vs. reactive

Your renewal process should be on the offensive, not thedefensive. Waiting for a premium increase before beginning theactivity is a reactive measure.Does every client need a re-shop ifthe premium increased by 10%? What if the client loves theinsurance company and wouldn't make a change even with savings?

Instead of analyzing percent-ages, change your process toinclude an automatic review of the renewal if the client had aclaim in the last policy period. This will ensure a proactive stepto follow-up from the claim, and confirm your client is satisfied.Chances are, these are also the clients who will realize a heftypremium change.

Make the renewal call early

There is nothing more embarrassing than receiving a call from aclient letting you know they received the renewal paperwork andthey're upset at the offer! You've lost your advantage, and nowyou're scrambling to find a better rate. Even if you do find abetter price, your client will be shopping the competition andremember that you only acted once instructed.

Avoid the situation by calling your client at least 45 days inadvance of their renewal. The purpose of the phone call is not toreview the policy, but to let them know the paperwork will becoming and that you've already started the process to begin therenewal! What a relief for the client to hear! They will be gladyou're on it and they'll appreciate the communication.

Appreciation and gratitude

Treat your renewals as if you're selling them again each year.You don't win only on price to obtain your clients' business in thefirst year, and the renewal of their policy should not be a time tosell them on price to stay.

Show them sincere appreciation for considering renewing theirpolicies with your agency, and find out more about how the lastyear has been personally and professionally.

Walk a few minutes in their shoes before you focus on yourgoals. Help them solve a problem that has nothing to do with yourrenewal commission, and see how it feels to engage withoutdiscussing deductibles and comprehensive coverage.

Write it down!

Most importantly, write down the renewal processes. You shouldbe able to hand the process to someone without insurance training,and they should understand how to do the job. Your processes aren'ta training program, but they will allow you to analyze your agencywithout biases.

Next year, when your renewal percentage increases, you'll have afun time debating which improved more: The People, or TheProcess?