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Dec 19
Why You Should Perform a Book of Business Review
One crucial aspect that insurance agencies should prioritize is performing a comprehensive book of business review. The data in your agency management system is full of valuable information that can help you protect your revenue and grow your agency. Having accurate and up-to-date information in your agency management system gives you insight into the makeup of your book. Let us explore the significance of some reports and why reviewing them is essential for your successful operations.
​​Why Review
​Carrier appetite
When you use a SIC code or NAICS code, you can easily pull reports on type of business written by carrier.
  • Provides insights on carrier appetite and competitiveness
  • Assist when marketing new/renewal policies.
  • Identify significant volume of policies with one carrier; consider exploring a special niche program with that carrier

Consider a carrier Service Center for small business.

​Cross-sell opportunities
  • ​​Identify cross selling opportunities and potential coverage gaps by routinely running these reports (Find these gaps before your competitor does).
  • Identify account rounding opportunities.
  • Uncovering potential gaps in coverage and offering additional coverages/policies that your customers will benefit from
  • Offer higher limits on policies.

These increase revenues, improve client retention, strengthen customer relationships, and help prevent errors and omissions liability claims.

​Expiration reports
  • ​Develop a risk management and communication plan 90-120 prior to renewal.
  • Check for policies that have not been renewed, rewritten, or cancelled.
  • Identify up-sell and cross-sell opportunities and minimize potential gaps in coverage.
​Overdue suspense
  • Identify follow-ups that have lapsed and addres them.
​Coding errors
Review for inconsistent coding:
  • Line of Business, Servicer, Producer
  • Parent/Writing Company
  • Commission Rate
  • Unbilled policies, and Unrenewed policies

All of these can impact on your bottom line. Once cleaned-up, review on a quarterly basis.

​Retention rate
Retention rate shows your ability to retain customers over time. You can identify patterns and trends that may impact customer loyalty.
​Download reports
Review for non-renewals or messages related to non-renewals.
​Commission Reconciliation
​​Verify that commission rates match between insurance company and agency. Research discrepancies by reviewing policies. This process is tedious but can be outsourced.

Performing a book of business review is a critical practice for insurance agencies focused on thriving in a competitive market. By regularly reviewing reports, agencies can proactively address policy renewals, identify cross-sell opportunities, and mitigate potential risks. Embracing these practices will position agencies as trusted advisors in meeting their clients evolving insurance needs.

Visit our consulting page for more helpful information.


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