It's about time to discuss the yearly account review process again. As we all know, most agencies have difficulty performing the yearly account review on all accounts. We're really good about doing the review for large Commercial accounts, but when it comes to small Commercial and Personal lines, things go out the window. Grace Bauer offers an easy way for you to ensure that you perform these reviews consistently, with all of your customers.
When performing the large Commercial account review, develop a detailed checklist. Realize the differences between Commercial and Personal Lines. Consider the second or third-year renewal review process. Think about developing and sending a newsletter. Try to perform reviews on all accounts no matter how small they are. Protect the agency from an E&O claim, and protect the insured from a possible uncovered claim.
LARGE COMMERCIAL LINES CHECKLIST
Large Commercial Lines account reviews are essential because these accounts have such a significant effect on their bottom line. If you don't have a checklist, compile the coverages to consider for each renewal.
Also, discuss and develop a Commercial Lines renewal workflow. Compile a checklist for each renewal. Hold weekly or fortnightly meetings to discuss the status of each account in the renewal process workflow. Agency principals will be better informed, producers will be happier, and customer service representatives will be in better control of their workloads.
COMMERCIAL VERSUS PERSONAL LINES
The differences between Commercial and Personal Lines involve size, rather than procedures. Despite the tendency to think that large Commercial Lines need special attention during the renewal review, a combination of several small Commercial or Personal Line accounts can have the same impact on the bottom line. Unlike large Commercial accounts where a visit is probably essential, stay in touch with small Commercial and Personal Lines customers on a regular basis.
THE SECOND OR THIRD-YEAR ACCOUNT REVIEW
Some agencies send a renewal letter to small Commercial and Personal Line accounts every second or third year. Instead of having to contact the overwhelming number of these accounts every single year, the accounts are split into three rotational years. With the increasing costs of postage these days, this is a good idea — at least you're not neglecting these accounts. This is another way to protect the agency and the insured from a possible uncovered loss or an E&O claim.
THE LETTER
Make the letter short, to the point, easy to understand, and effective. Survey your employees to find out what clients are calling in about each day. What changes are they seeking? What are their concerns? Then base the letter on these changes, concerns, and needs. Come up with maybe 10 questions to ask.
THE NEWSLETTER
If you're already sending or e-mailing a yearly or semi-yearly newsletter, why not enclose the yearly renewal review letter at the same time? It's easy, it's effective, and, again, it will protect the agency and the insured.
CONCLUSION
There are many areas to consider when developing a yearly account review program for the agency. Develop a large Commercial Lines checklist. Understand the differences between Commercial Lines and Personal Lines and put together a plan. Consider sending a second or third-year renewal review and letter to your small Commercial and Personal Lines accounts. Enclose the letter with your client newsletter.
There's no better way to protect your insureds and your agency while growing your bottom line.