Retention = $

We all know that it costs more to gain a customer than it does to retain one. This is very evident today as customers shop quotes hoping to find lower premiums. Though I advocate comparison shopping your insurance policies periodically, I also strongly encourage people to consider the service they receive from their current agent. A few dollars saved doesn't mean it's a wise choice to go elsewhere. (Next week we will be posting tips on how to save money on your insurance premium.)

As stated in an article by National Underwriter Property & Casualty News, the loss of an insurance customer can be costly, especially in the current economy.

Richard Kerr, chief executive officer of Dallas-based MarketScout explains that "Insurers and brokers are faced with diminished premium bases before they even consider the terms of renewal or rates. If a firm’s exposure base is down 20 percent and it renews 90 percent of its customers it only captures a true premium renewal rate of 72 percent. The resulting lower retention puts incredible pressure on new business initiatives in order to maintain premium volume."

This means insurance agents will be bidding on new business. This also means that there is a greater opportunity to lose business. Customer service is one area that will help dictate their retention rate. The wise insurance agent will be - and has been - offering exceptional customer service!

Is it time to shop for a new premium and/or agent? Or are you being served well by your current agent, which has earned him/her your continued business? Share your experience here.