Mastering Client Retention: Strategies for Insurance MGAs & Wholesalers

In the insurance industry, the persistent challenge of client retention often presents a significant obstacle. However, beneath this challenge lies a concealed opportunity – as even a modest improvement in retention rates has the potential to significantly boost profits.

The insurance sector has some of the highest customer acquisition costs of any industry, and an average client retention rate of just 84%. Yet it’s important to note that a mere 5% improvement in an agency’s retention rate has the potential to double profits in just five years, and reducing customer defections by just 2% per year is equivalent to cutting costs by more than 10%.

Many insurance businesses are utilizing automation platforms to improve client retention strategies. Here are three of the top client retention challenges currently facing the insurance industry:

1. Response times are too slow

From new accounts to renewals, the insurance marketing process has always been painfully slow. Today’s agencies must have the ability to approach multiple carriers that align with the needs of their clients to reduce submission times and expedite quotes, proposals and policy issuance. Delays in processing and response times will send even the most loyal clients elsewhere.

2. Adapting to customer needs and new market trends

A wholesaler’s broker clients will always have clients of their own who request new products, coverage and services. If their needs aren’t met, they’ll go to a competitor. By focusing on adapting to customer needs and staying in sync with market trends, wholesale insurance agencies and MGAs can maintain a competitive edge, enhance customer satisfaction, manage risks effectively, drive revenue growth, and build a strong, sustainable future.

3. Finding unique solutions for complex and hard-to-place risks

Today’s unique market conditions require agencies to have an appetite for and access to a wide range of carriers – including those with a higher risk-tolerance for placing more challenging accounts. By combining industry expertise, strategic partnerships, innovative product development, and tailored risk management services, insurance wholesalers and MGAs can address the challenges of these risks effectively and provide value to their clients.
From automatically populating carrier appetites and available markets, to reducing manual processing of information and streamlining the delivery of quotes and renewals, today’s automated technology has become a game changer for insurance wholesalers and MGAs in helping them retain more business.

Automation platforms play a crucial role in improving client retention by providing a superior customer experience, personalization, efficiency, and data-driven insights. By utilizing these platforms effectively, agencies can build stronger, long-lasting client relationships and reduce the likelihood of client attrition.


About Surefyre, Inc.
Surefyre is a highly configurable insurance automation platform and agency portal focused on digital distribution and automated workflows. Our easy-to-implement process can integrate with almost anything, from outdated legacy systems to top-of-the-line programs. Our code-less integration platform makes your life easier by automating the submission, rating, quoting and binding process for all P&C insurance products.

To learn more, contact Shawn Gonzales, adviser and account executive, at or 415-480-9283. 

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Shawn Gonzales Profile Picture
Shawn Gonzales
Advisor & Account Executive