WHY RENEWALS ARE THE WORST TIME FOR ACCOUNT ROUNDING written by Colby Tunick , ReFocus AI
In insurance , customers are only likely to hear from their insurance agent when filing a claim or when it is time to renew their policy . This turns the renewal period into a high-stakes game to learn about changes to an insureds ’ needs , and upsell or crosssell ( i . e ., account rounding ) appropriately . What may come as a surprise though is that out of the entire year , account rounding within 30-days of the policy expiration has the lowest likelihood of success .
We uncovered this insight after anonymizing and aggregating hundreds of thousands of policies and reviewing the data for changes to an insureds ’ existing coverage . The 30-day window around the renewals period held true regardless of the type of insurance being sold or the size of the premium . While there may be specific agencies or brokerages which are the exception that proves the rule , it is clear that the insurance industry has a billion-dollar communication and account rounding problem .
RENEWAL BLUES
According to a new survey by Collinson 1 , less than 50 % of insureds hear from their agent , broker , or carrier more than once a year . Perhaps underestimating their appetite for communication , or misunderstanding their motivation for opting out , insurers have begun
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