In the insurance industry, maintaining accurate policy expiration dates is essential for effective client retention and ensuring a steady revenue stream. While expanding the client base and adding new policies is crucial, the ability to manage renewals efficiently is what ultimately sustains growth and profitability. Without precise expiration data from the Agency Management Systems (AMS), agencies risk losing premiums and revenue, directly impacting their financial health.
When Account Managers (AMs) cannot rely on accurate policy activity statuses in their reports, they face the challenge of manually verifying data to determine renewal needs. This process is not only time-consuming but also prone to errors. Agencies that cannot clearly identify active versus expired policies risk failing to generate accurate renewal reports. This complicates the renewal process, ultimately resulting in lost premiums and reduced client retention.
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One of the primary tasks for insurance agencies is to generate reports that help AMs make strategic decisions backed by reliable data. Renewal reports are crucial for identifying clients whose policies have recently expired so that AMs can reach out to them and encourage renewals. However, this process is often fraught with difficulties. AMs must open each policy, review the expiration date, and determine whether it has expired or is still active. Despite the AMS assigning an activity status to each policy, discrepancies frequently occur. Unreliable activity statuses force AMs to double-check the reports generated by their AMS, adding to their workload and reducing their overall work efficiency.
Most AMs strive to be strategic in handling retentions. They leverage insights from reports to plan their days, keep track of renewal statuses, log follow-up actions, and renew expired policies. According to Nationwide, the average retention rate within the insurance industry is 84%, with top agencies exceeding this average by 10%. Aiming to reach and surpass this goal should be at the forefront of all insurance agencies’ strategies.
Inaccurate policy expiration data makes accurate forecasting and management of revenue streams nearly impossible. Renewals contribute significantly to an agency’s income, so having an unclear view of active and inactive policy statuses hinders agencies from understanding their expected commission earnings. This uncertainty complicates financial planning and maintaining financial stability.
Generating precise renewal reports in insurance agencies is a labor-intensive task for AMs. Manual methods of identifying and rectifying policy expiration date errors are inefficient and prone to mistakes, especially under budget constraints limiting investments in advanced AMS tools.
[Related topics: A Report is Only as Good as The Data Used to Compile It]
DataFix by Synatic automates many manual insurance processes associated with policy renewals that agents perform on a daily basis. The solution's cleverly designed true AI abilities automate the identification and correction of policy expiration dates and their corresponding activity statuses allowing AMs to manage errors by exception, not by quantity. This eliminates the need for agencies to dedicate time and expensive resources to clean and verify client policy data. This streamlined approach to error management eases the workload on AMs and minimizes errors.
At its core, DataFix ensures a single source of truth in your AMS and does it seamlessly, so agencies don't have to spend thousands every time they want to pull accurate reports. This means that agencies can have 100% trust in the figures within their renewal and revenue reports.
By automating the verification and correction of policy data, agencies can rely on accurate information to take advantage of the opportunity to discuss the details of their policy and potentially adjust client coverage. This can result in the agency renewing more policies and retaining more business, strengthening client relationships. With accurate reports fueling insurance agency's renewal strategies, agents can avoid overlooking policies that have expired and losing them to competitors. If you want to regain control of your renewal and retention strategies and ensure that inaccurate policy expiration dates don't impact your revenue contact Synatic today.
