Maximize Your Retention Rate
How Can MGA Billing Solutions Help Your Company?
Customer Retention is an important part of any business, especially in the insurance industry. Obtaining new customers is a very expensive proposition. Once you have those customers on the books, it is important to have a system in place which makes the renewal process easy.
Direct Bill Insurers are estimated to have an 80% to 90% renewal rate, or more.
Why, because they provide their insureds with a simple, direct process for insureds to renew their policy.
But certain insurance carriers do not provide a payment plan.
Consider using a Direct to Insured Renewal Program for your MGA.
How do you manage your renewals? Do you renew exclusively through your agents or do you send renewals directly to the insured? Do you follow up on policies not renewed? Do you include finance agreements with quotes or renewals?
Consider “Direct to Insured Renewals” for Your MGA
More MGA’s are beginning to offer a "Direct to Insured Renewal" option where the insurance carrier does not provide a payment plan. The insurance agents continue to be an important part of the process and they receive copies of the renewal documents, but now, certain MGA’s are also sending the renewal notices directly to the insureds in an effort to increase their retention rate.
Direct Renewal Program features:
Renewal Documents are created to include your usual insurance documents. The cover letter is modified to include payment options: Pay in Full or an Installment Plan through a premium finance company; and a Premium Finance agreement is included
Renewal Documents can be sent via regular mail or can be emailed to the Insured
Insured can renew by:
Mailing check for Total Premium or Down Payment to MGA or
Clicking Payment link in Email and paying via computer or smartphone or
Logging in to Payment Portal to make payment
If renewal notices are sent via email, reminder notices can be automatically sent at pre specified intervals
With the Email option, the MGA can access to a Dashboard showing status of renewal notices sent including those paid and unpaid
The Email option can also provide for Electronic Signatures
How Expensive is Direct Renewal?
Direct Renewals can be both easy to implement and can be surprisingly affordable:
Implementation - we can usually create your Direct to Insured Renewal documents in a simple way. Just provide us with your renewal documents in PDF format, we extract the necessary data, create the finance agreements and modify the cover letter and attach to your original documents and they're ready to send. Alternatively there are a variety of methods to create or modify the necessary documents.
Traditional Hard Copy Mailing - once your Renewal Documents are created, they can be electronically transmitted to a printing / mailing facility which can print, fold, insert, and mail your documents for a very affordable cost.
Email of Renewal Notices - you can also use an online Invoicing service where you can upload your Renewal Documents in bulk, and they will be sent out and tracked, for a very inexpensive cost.
Premium Finance Revenue - you may also be able to earn revenue from the Premium Finance company which may exceed your renewal processing costs
Traditional Hard Copy Mailing vs. Email Billing
Additional Quoting Considerations
Are Your Earning Revenue from Premium Finance?
Consider Including a Premium Finance Agreement with your new Quotes.
Many MGAs now send a premium finance agreement with their quote to the Insurance Agent. This saves the agency time when they need to complete and fund the policy. Additionally, you can work out an arrangement with a premium finance company so that you receive compensation for these premium finance agreements (in states where permitted).
David Raymond, founder, started his career in Accounting. He then went on to be a co-founder of a premium finance company , and has more than 25 years of experience in the premium finance industry. After Mr. Raymond left executive management, he started his own consulting firm and works with both finance companies and MGA's in the field of billing solutions.
MGA Billing Solutions
MGA Billing Solutions
Weston FL 33326
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