Running an insurance business can rack up expenses quickly. With new challenges, business models, market changes and a newer generation looking to buy insurance, it can be tricky to navigate while controlling expenditures.
Insurance brokers constantly need to find new ways to increase profits while being cost-effective, which is why we’ve put together a list of tips to help.
1. Reduce advertising costs
Advertising costs can take a large chunk out of your revenue and they are often unnecessary. With social media and email tools your advertising costs can be drastically reduced. Social media is a highly effective marketing solution that won’t cost you a penny unless you want to branch out into paid advertising, which is very inexpensive, to boost the reach of your posts.
Creating your own website is also fairly inexpensive if you have the right knowledge and by implementing SEO it can be a huge way to generate new business. Email is another effective, low-cost marketing strategy that can be used to keep customers engaged, updated and aware of your business.
2. Improve customer retention
Acquiring new business is much more costly than improving customer retention to get repeat business. Focusing on the human connection and building strong relationships with your customers, gaining a solid understanding of their specific needs and delivering a personalised service will result in them being more likely to renew their policies with you. Not only will this save you money but it also guarantees steady business and enables you to deliver a better customer experience.
To go the extra mile for your customers, you can implement a bespoke loyalty platform for insurance brokers with exclusive offers and discounts to reward and incentivise clients. Loyalty platforms are a great way to retain customers and allow them to see the value in using your services over any other company.
3. Lower office space costs
If possible, depending on the size of your business, it may be worth looking into moving to a less expensive premises. The rates of renting an office space can be extremely high and if you’re a new business just starting out then moving to a smaller, affordable location will give you extra money in your pocket to invest into other areas to improve your business. Better still, if you have the ability to work from home it can result in huge savings such as travel expenses, utility bills and insurance.
However, if your insurance company is large and moving locations isn’t a viable solution you can always try speaking to your current landlord to negotiate for better lease terms.
4. Invest in technology
Investing in a highly customisable insurance software system that automates menial tasks can reduce operational costs and allow your staff to focus their attention on bigger jobs. We can create a system that handles both legacy and new business from multiple sources, extracting data such as policies and quotes to compare in seconds. Our system can automatically respond to approximately 2000 quote requests per day and is far more accurate than a worker doing the job manually.
By implementing these technological advances and creating a more digitalised routine to complete simple yet time-consuming tasks, your employees can spend more time building stronger connections with customers, improving retention and satisfaction while being able to push more sales.
5. Collaborate with other businesses
Collaborating with other businesses and bartering services to negotiate better deals is a long-standing tactic to be more cost-efficient. Whether you need a web designer, new office equipment or want to plan a social event to bond your team put your sales skills to the test by offering your products and services in exchange for others.
While this can be a hit or miss tactic, if successful you can reap the benefits. Not only will you be receiving a product or service that you need but it’s also a great chance to build relationships with other businesses who may call on your again for their insurance needs.
Find out how we tripled an insurance broker’s income while slashing their costs with technology.
Sales centric and built to your specific business needs, take a look at how our general insurance system can improve your business.