In the world of insurance, customer retention reigns supreme. For agents and brokers navigating today’s competitive landscape, securing long-term client relationships is not just a goal, it's a necessity. In this pursuit, one low-effort-high-return strategy emerges as a game-changer: the annual auto pay plan.
Policies through Hagerty already score very high on in-force policy retention at about 89%.* While that’s very strong performance, in today’s market every single competitive advantage counts.
Customers enrolled in auto pay have significantly higher retention rates, about 4% points higher, compared to those on other payment schedules.
According to research done by Bain & Co., a 2% increase in customer retention has the same effect as decreasing agency costs by 10%.
Insurance customers enrolled in annual pay plans save on their insurance premium over installment pay plans.
By advocating for annual auto pay plans, you’ll not only bolster client retention but also streamline your workflow and save your client money.
With Hagerty's seamless process and quick quoting platform, you can effortlessly select the annual auto pay option in the insurance application, paving the way for a hassle-free renewal experience.
You can even adjust existing customers’ payment plans at renewal or when submitting an endorsement.
Time is money, and your time is best spent on the highest value work. With Hagerty's automated renewal reminders, clients receive timely notifications before payments are processed, eliminating the need for agents to intervene—a win-win scenario for both parties.
In today's insurance landscape, where rates are rising rapidly and customer retention is a top priority, growth-minded agents must seize every opportunity to enhance the client experience. Annual auto pay plans are an easy win for you and your clients, promoting increased retention rates on your end with streamlined processes and a potentially lower annual cost for them.
Drive policy retention and free up more of your time—one annual auto payment at a time.
*2023 Hagerty auto PIF retention as of 12/31/23. Hagerty is a trademark of The Hagerty Group LLC, ©2024 The Hagerty Group, LLC. All Rights Reserved. The Hagerty Group, LLC is a wholly owned subsidiary of Hagerty, Inc.