New online service aims to increase broker retention rates
An online system has been launched to help brokers boost retention rates against the onslaught from direct writers.
Myinsurancefile.com offers brokers the opportunity to receive an email alert 14 days prior to a client's policy renewal date. This offers the broker the opportunity to offer the client an alternative quote and cross-sell other insurance products to the client.
Arkivia, the company which has developed the system, claims this allows both commercial and personal lines brokers to generate new sales leads and enhance the efficiency of retaining clients.
Arkivia director Tony Withers said: "It is a well known fact that you should be seven times more successful selling to an existing client than finding a new one. The typical client may have more than five separate policies yet most intermediaries only have a ratio of 1.3 policies per client or less."
He added that the system would give a competitive advantage to the small to mid-size broker against the big direct insurance players which have multi-million pound marketing budgets.
"Brokers may have hundreds of clients with a motor or household policy on their books but don't bother at renewal date to ask whether they need travel, pet and life insurance," he said.
Clients access the site by clicking a button on the brokers' website. The client can store all his insurance details and information relating to the risk, and then receives a password. Once registered, the client cannot use the details with another broker and only the registered broker will receive the alert.
The price of the service depends on the brokers' existing clients, according to the company, but averages at £50 per month for an intermediary with up to 3,000 clients.
The system has been piloted with Northampton-shire-based broker Profile Insurance, and one other broker, said Withers.