LD-0610 Frustration - Client Retention Problem


Prins Insurance, Inc. – Sioux Falls





Key Frustrations Process Worksheet


Step 1        We are losing customers to other insurance agents because we have not upgraded current clients into a preferred and less expensive insurance program at the time of their renewals.


Step 2                        This frustration is system-directed:  There is no system in place to monitor the renewals.


Step 3        Our business is impacted in several ways:

1.      We are losing the renewal commissions because of lost clients.

2.      We are losing some of their friends because of the new agent’s program.

3.      We are losing credibility for not taking care of current clients.

4.      We do not have the proper agency retention level that superb agencies have.

5.      We are losing the easiest sales to make - our present customer.


Step 4        The real problem in our business is the absence of a fully installed Client Fulfillment System, rather than “There is no system in place to monitor the renewals.”  The total Client Fulfillment System will be made up of many small systems including this one.


 Step 5      A system to monitor renewals is definitely needed.  It will be the first system developed for our total Client Fulfillment System.

















Step 6                  Accountable:  Dick Applequist is accountable for designing the system.      


                  Main Steps:    

1.      Identify all clients not insured in our preferred programs 90 days in advance of their renewal.

2.      Check each insured’s underwriting history to determine if the policy can be upgraded.

3.      If we cannot upgrade – do nothing more with that client.


4.      If we can upgrade  -


·        At 60 days prior to renewal

·        Quote other companies.

·        Send complete proposal and cover letter explaining the new upgraded quote.

·        At 30 days prior to renewal - If we haven’t heard back from our client.

·        Call our insured and sell him the new policy

·        Complete the application

·        Deliver the new policy



                  Operating Forms:


1.  A report will be developed in our agency management system to automatically retrieve the renewal list for clients who are not insured in our preferred program.  This report will be generated automatically on the 1st of every month.


2.  A letter of explanation will be developed and entered into our agency management system.  This letter will be merged with client information when the new proposal is sent to the client.


                 Scripts:               A script will be formed for the 30 day follow-up call.











                  Elements of the management information package. The following items are                   measurable:

1.      Measure the retention ratio for the agency.

2.      Obtain a count for the number of clients we upgraded to the preferred programs.

3.      Obtain a count for the number of clients we upgraded to our “A” client status.  (We have an “A” and “B” client – two levels of service)

4.      Get customer input on how they feel when we are proactive in their renewals.


                  Training:  One person will be assigned the system responsibility but the actual work of quoting, contacting the client, and the new application will be the normal responsibility of all customer service agents.   All customer service employees will be trained for this system.

                  Enforcement policies and procedures: Will be determined as we develop the system.

                  How will employees be notified: To be determined as system development takes place.


                  How will implementation be rolled out? Also to be determined