If you are an average agency, you can grow your revenue by at least 20 basis points without adding a single client. This is a very specific statement, and while I have been told this was a number developed by a Deloitte study, I believe it to be a huge understatement.

Data can be used for P&L improvement through account rounding, carrier optimization, and cross-department referrals. For today let’s focus on account rounding. The average Independent Agency writes only 1.3 policies per client, while the average client purchases over four policies yearly. The average single-policy account stays with an average agency for only three years, while accounts with three policies last an average of 11 years. (again, all that from a Deloitte study).

It would be realistic to think that the average insurance agency could increase its annual revenue by more than 50 basis points by focusing on account rounding. Not only do you get more revenue per client, but those clients stay around a lot longer.

Every agency has data to initiate and monitor an account rounding campaign. Some will be lucky and can do this easily through an analytic system such as RiskMatch. But any old fashion agency management system can produce the data if you know where to look.

Let’s talk about how you can use data to build an account rounding program and improve your P&L. This will also enhance your client satisfaction, increase your referral stream, and grow your client base.