Does it seem like your bills get higher and higher each year that you run your insurance agency? You can’t make much of a profit if your overhead costs are too high, so it’s time to make a change. Updating your insurance agency’s methods and practices can help you reduce costs quickly. Evaluate your agency to see if you’re using any of these outdated business models and ideas. If you are, make the change so you can grow your agency.
Prime Real Estate and a Fancy Office
Back in the “old days,” insurance agencies needed prime real estate and fancy offices to compete. If an agency didn’t have the right address and an impressive interior, it would lose out to the competition.
That’s no longer the case, though. Now, your agency can work remotely while providing the same level of service to customers. Remote work can improve productivity and efficiency, especially when you use the proper technology. For instance, Jenesis Software’s technology partners can provide e-signing solutions so you can collect signatures from home.
By switching to a remote workforce, you can save on mortgage and rent payments, electricity, and more. You will also find that it’s easier to find and retain top talent. The best agents want flexibility, and remote work provides that.
Direct Mail to Existing Clients
Years ago, sending direct mail to clients was essential for insurance agencies. Direct mail was used to keep clients updated, notify them of renewals, send bills, and more. You need paper, envelopes, and stamps to send direct mail, and the costs can add up. Fortunately, you can move from direct mail to email in 2021.
Some of your clients might want to stick with direct mail, so you can still provide the option. However, many will prefer email, so you can save money when corresponding with those clients.
Keeping up with direct mail and email preferences is easy with insurance agency management software. Just include the client’s preferred method of contact so you can ensure everyone receives communications from your agency.
You might not be able to do away with paper entirely in 2021, but you can make moves to become a paperless office. Going paperless will save you money, but that’s not all. It will also improve your office’s security and efficiency. You won’t have to worry about leaving sensitive data on their desks, and you also won’t have to watch agents waste time sorting through files. They can use the extra time to recruit new clients.
The right insurance agency management software will make the transition to becoming a paperless office seamless. You can use the software to create and maintain digital files that can be accessed anywhere. Once you see the results, you’ll realize that going paperless is the right choice for your agency.
Mass Direct Mail Campaigns
There was a time when receiving mass mailers from insurance companies was a weekly occurrence. They would send them out to everyone in the area without any thought on who needed insurance. Many of the recipients weren’t active leads, so the success rates for these campaigns were often low.
Some insurance agencies still use direct mail campaigns, but the process has changed. Now, they qualify leads and send mailers to them. Others have eliminated these campaigns, replacing them with digital marketing.
You can save a lot of money quickly by putting an end to mass mailouts. They annoy people and can hurt your ability to get customers. Plus, they are expensive to run and maintain.
A Full Staff
Insurance agencies used to take care of everything in-house. Now, though, you don’t necessarily need to keep a full staff on your payroll. You can save money by outsourcing some of your agency’s needs. Outsourcing allows you to save money on training and onboarding. It can also reduce staffing costs. You can use outsourced staff members on an as-needed basis and pay them accordingly.
Many insurance agencies successfully outsource accounting, fraud investigation, data processing, and more. Consider your staffing needs and salary obligations. Then identify ways you can save through outsourcing. You can start slowly and add more positions down the road.
Trim the Fat with These Tips
While it will take some time to make these changes, it will be well worth the effort. You can begin by ensuring you have the right insurance agency management software. Your software will help you make many of these changes, from switching to a remote workforce to going paperless. Then you can work your way through the rest of the list. After you make the changes, keep an eye on your costs. You should notice that your overhead costs go down. Plus, you might see a spike in revenue after implementing these changes.