April 28, 2015
1 min read
Topic: Insurance Agency Management Grow an Agency
If the average independent agency increased the number of policies it sold its average customer by 1.5 it would double in size.
Let’s marinate in that for a moment shall we?
Would you like to have an agency twice the size it is today? Of course you would! The average personal insurance agency in America writes 1.5 policies per account. So, adding a couple more doubles the size.
By the way, do you know how many policies YOU write per account? If you don’t….
Account rounding is simply the fastest, easiest, most cost effective way to grow an agency. Period.
When you have more policies per customer your retention rate goes up. This means you have to sell less new business to grow at a given rate. It also means that you have higher revenue per account which means that not only are sales higher but marginal profits are too (less overhead cost per unit).
The very first marketing you should do to grow your agency is to increase the number of policies per account.