Can independent insurance agents increase customer retention through the insurance claim process?

You are sitting in your office and the phone rings. It’s the client calling to tell you that they have got in an accident. They have already reported the insurance claim online, but now what?

They don’t know what to do next, whom to contact, and what happens in the insurance claim process.    

You were the first person they could think of! Why? Because you were their first human contact in their insurance journey.   

You must be thinking the insurance claim process is not an agent’s headache. It’s true. The claims adjuster plays a much more significant role in the insurance claim process.   

Then why should you get involved in the insurance claim process?

Let’s dive into facts!   

According to IIAD, the insurance industry has higher customer acquisition costs than any other sector.    

It costs 6-7 times more for an independent insurance agent to attract a new customer than to retain a current one.   

What does this mean for you as an independent insurance agent?

You are going to be spending more on a new prospect when you could be spending far less on retaining one.   

Recently, the McKinsey report showed that a satisfied customer is 80% more likely to renew their current policies than unsatisfied ones.   

Captive Agents have a clear path designed by their carrier when it comes to the claims process. They do not have much freedom with how they can help in the insurance claim process. 

Independent insurance agents deal with various carriers, and each carrier’s claim handling process is different. Most carriers use call centers and online platforms for the insurance claim procedure.   

That means independent insurance agents have more opportunities to build stronger relations with their clients.  

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How do you retain your current client? 

Simple answer: by providing them the best customer experience! Mainly, by giving it in the most vulnerable time, i.e., the insurance claim process.    

The insurance game is all about relationships.  

Claims process is certainly a tough time for insureds who have their resources in danger. Not all carriers have a swift claims response, and this can put your business in grave jeopardy.   

As Keith McComb, director of INSURICA, says, “If someone has a bad experience, it no longer matters to them that the insurance policy they purchased was cheaper than competitors’ policies.”   

It’s during the insurance claim process when they look for a trusted advisor. You can use that to your benefit.   

Yes, agents have no control over the insurance claims verdict, but you can control whether the clients have a positive or negative claims process experience.   

Independent Insurance Agents and Insurance Claim Process   

For many insured, independent insurance agents are the first point of contact. Use it to your advantage!   

When you get a call from your insured, firstly settle them down and give assurance.   

Let the client know that you’re here if anything happens. Dropping a negative bomb at the time of claim can shape the view of how the client sees you as an insurance agent.    

Above all, your clients might be going through a hard time, so follow-up frequently with them, and give emotional support.   

Be the point of contact for both clients and the insured. Communicate any confusions and questions either party might have. 

If they don’t get the best impression of your service, it might be a catalyst for them to switch agents!

What more should you do as an Independent Insurance Agent? 

Firstly, as an independent insurance agent, familiarize yourself with the insurance claims process of the carriers you represent.  

Be the mediator between the carrier and insured, even in the insurance claims process (not just policy renewal!).    

You might want to clear any concerns your client has about the insurance claim process, such as: 

  • How long will the process take?  
  • Who evaluates their loss? 
  • How is it evaluated?  
  • Can the insurance carrier deny the claim? 
  •  How filing a claim can affect their rates?  

If you feel like their claim might be denied unjustifiably, intervene, and negotiate on behalf of the insured. Negotiation with the insurance company should be considered, but be careful when advocating for your client.   

You must also be rational not to overpromise coverage. Overpromising might bring a lawsuit (E&O claims) to your table.   

Make sure to give the best insurance claims experience to your clients. When clients get the best customer experience from you, they are less likely to walk out of your business.   

What more can independent insurance agents do? Comment below and let us know. 

Learn how you can flourish as an agent after one call!

Schedule a call right now and learn how you can ease your work, sell more, and increase your profits!