ACCOUNT ROUNDING - Travelers



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ACCOUNT ROUND STRATEGIES FOR SUCCESS

Personal Insurance

Agency Development

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The average consumer has four insurance policies, but the average

Independent Agency writes only 1.3 policies.* That’s why account

rounding is one of the most profitable actions your agency can take.

In addition to generating sales, it tightens the relationship

between you and your clients, dramatically

increasing your agency’s overall retention.

*, 2004

Account Rounding Benefits

|POLICYHOLDER |One agent to call when advice, counsel or claim help is needed. |

|BENEFITS |Saves money in account discounts with multi-policy credits. |

| |Lessens the likelihood of any exposures being overlooked. |

| |One bill. |

|CSR/AGENT |Improves efficiency. Increasing the number of policies per client does not generate as much work as adding more clients with monoline policies. |

|BENEFITS |Fewer billing questions! |

| |Establishes trust and credibility with client. Remember that if a client has a policy written with another agent/company, they have a relationship with that agent/company separate |

| |and apart from their relationship with you. So, if only 25% of your book of business is account rounded, 75% of your clients are talking to another insurance professional about |

| |their insurance needs. Be the one they talk to and trust! |

| |Protects you from E&O claims by lessening the likelihood of any exposures being overlooked. |

| |MORE REFERRALS! Policyholders will refer more clients who will also value your expertise. |

|AGENCY |Increases revenue and commission revenue per account/client. |

|BENEFITS |Increases the value of your agency. Agencies with high levels of account rounding (number of policies per client), are valued higher than those that are not. |

| |Improves retention. As the number of policies you service for each client increases, the longer they will stay with you. It costs far less money to keep a client then to add a new|

| |one. |

| |Protects your E&O by lessening the likelihood of any exposures being overlooked. |

| |Referrals from clients who will also value your counsel and expertise. |

| |Improves relationships with company partners. |

|COMPANY |Increases revenue. |

|BENEFITS |Economies of scale – fewer bills to be processed, claims processes, etc. |

| |Improves retention. |

| |Improves relationships with agency partners. |

Below you will see some examples of client scenarios and some suggested scripts:

When you take the time to get to know your clients, you may pick up on buying clues such as them wanting the best value for their insurance program.

“Mrs. Smith, you indicated that finding the best value for your insurance program is important to you. One of the greatest values available to you is when you package your home and auto policies together. I realize you phoned today about your home insurance, but we pride ourselves on working with clients to design a personal insurance program which includes looking at all policies. Does providing the best insurance value combined with the best package of protection interest you?”

By getting to know your clients you may uncover that they have other properties that you can talk to them about insuring. They could own a boat, valuable collectibles, a summer home, etc.

“Mr. Smith you mentioned that you often drive to the shore in the summertime to fish, do you own your own boat? By our agency writing all of your insurance policies including your home, auto, and boat, it is going to lessen the likelihood of any exposure being overlooked. You would also only have one phone call to make for counseling or claim help.”

If the client is timid to give you their social security number because they are afraid of identity theft, perhaps they would be interested in the identity theft coverage you have to offer.

“Mr. Smith I recognize that this information is sensitive, but do understand that it is needed to give you the most accurate quote on your insurance. Would you feel more comfortable giving this information if you knew that we could offer you Identity Theft coverage as well?

If you have sent them a mailing, below is a suggested script

“Hello, This is (CSR name) from (Agency Name). I’d like to thank you for purchasing your (homeowners/auto) insurance with us!

We recently sent a postcard to you about a money saving opportunity on your insurance policy. We just wanted to let you know that if both your homeowners and your auto insurance polices are insured with Travelers that you can get a ____ discount on both policies! That can add up to a nice annual savings. We can get you a free, no obligation quote on a Travelers (homeowners/auto) policy and let you know how much you would save with the discounts.

I just need a few pieces of information to get your quote started” (segue into quote process)

Account Rounding Implementation Plan

|Step # |Procedure |Person Responsible |Target |Date |

| | | |Date |completed |

|NEW BUSINESS |

|1 |ASK! ASK! ASK! All staff must begin to ask for rounded business on day one. Familiarize staff with scripts above. | | | |

|ROUNDING EXISTING BUSINESS |

|1 |Determine what line of business you would like to round (Auto ( Home, Home ( Auto) | | | |

|2 |Generate list of monoline business (Contact company representative for listing OR pull listing from agency management system) | | | |

|3 |Scrub Listing - Remove clients from the list where the other policy is in force with another company within the agency or where you do not want to | | | |

| |solicit the other line for another reason (known driving record, etc.). | | | |

|4 |Determine the amount and timing of mailings. Determine capacity based on the maximum number of mailings your agency can follow up on during a given time| | | |

| |period. | | | |

|5 |Produce Mailer or Contact your Sales Executive to sign up for One2One | | | |

| |If creating your own mailer continue. If utilizing One2One, continue to step 11. | | | |

|6 |Create Mailer. ie- Prepare mailer with a sticker or hand-written note, “ARE YOU GETTING ALL OF YOUR DISCOUNTS?” These can be prepared in advance & | | | |

| |addressed as needed. The agent can choose any message that fits their philosophy & can change it based on results. | | | |

|7 |Purchase Stamps. | | | |

|8 |Mail merge addresses and prepare envelopes. | | | |

|9 |Stuff envelopes with account round mailer. | | | |

|10 |Mail account round solicitations based on determined timing and agency capacity. | | | |

|11 |Follow Up ( Outbound calls to recipients based on individual workload. | | | |

|12 |Track Source to Sale for ROI. If quoted but not sold, enter a pending or tickler to follow-up and requote prior to the customer’s next renewal date. | | | |

| |Monitor successes and failures and adjust program as appropriate. | | | |

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According to industry studies, it costs more – as much as

ten times more - to acquire a new customer than it does

to retain an existing one.** That is why it is important

to focus on the customers that you already have a

relationship with and make YOU the one person they

call for all of their insurance needs.

**Insurance and Technology, December 2003

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|  |Monoline Home |Break |Your Agency |

| | |Even | |

|Monoline Policies |500 |500 | |

|Conversion Rate* |10.1% |.32% | |

|Sales |51 |1.6 | |

|Average Premium |$1,250 |$1,250 | |

|Total Sales Premium |$63,750 |$2,000 | |

|Commission Level |15% |15% | |

|Year 1 Commission |$9,563 |$300 | |

|Agency Cost |$300 |$300 | |

|1 Year ROI |3088% |BREAK EVEN | |

*It is important to track both response rate and conversion rate.

Response rate determines whether or not the mailer was effective.

Conversion rate determines how effective the agent was with selling the

second line once the call was placed into the agency.

One-to-One Mailing Program

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