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Client retention is an ongoing process that starts with providing excellent service and continual client contact from the very first contact and continues throughout your relationship.

Here are a few strategies you can employ to retain more of your existing clients:

1. Respond to your client’s needs by changing your sales pitch for those who need you to listen and communicating via email, phone calls, or face-to-face meeting to show you care. Also, follow-ups like a newsletter, cards, or surveys will also help you clients know you care about them as a person rather than a number.
2. Put your client’s needs first, listen to what they have to say, and make note of what is important to them. When you show how your customer service will exceed their expectations they will willingly contact you again with their questions, concerns, policy changes, or need to change a product or service.
3. Meet your deadlines, call when you say you will, and show that you are responsible and that your clients can trust you to do what you say you will do.
4. Treat them like you would any other business associate. Look out for their best interest, take their concerns seriously, and ask questions to meet both their current and future needs.
5. Use referrals, testimonials, and other endorsements to allow others to speak for you and show your expertise within your field. This will give you credibility in your business and confirm your client’s decision to choose you to guide them with their supplemental insurance needs.
6. Give your clients your all and gain their loyalty. When you have a strong base it will also be easier to leverage those testimonials to new clients.

Please give us your feedback!
What have you found most important in retaining clients? Do you have any techniques that you use that would help other agents be successful?

Source: Insure Me

Even when business is tough and consumers are becoming more selective, there is still a huge potential for agents to increase their commissions and customer portfolios. Plus, for those who are producing more, insurers are beginning to give better leads and the tools to continue to grow their business. "It’s increasing optimization. It’s increasing productivity. For good agents with talent, I would see the opportunities increasing," Marie Carr, principal at PricewaterhouseCoopers Diamond Advisory Services said. Insurers are doing only slightly better than the financial world in this economy; and, they are leaning toward giving more support to those agents writing more business, more profitable business, and more lines of business. Thus, overlooking agents who are not as high of producers. Carr explains, "They’re refining their portfolio of agents."

In recent years consumers have begun to purchase insurance in less traditional ways, selling Medicare Supplements over the phone and online. The pressure is on for agents to keep up with advancing technology. Technology is available to help agents enhance their business relationships, via social networking and online tools, and it will continue to drive business. It’s also important to continue to re-evaluate and define the value of your experience and services to your prospects. Consumers still want to be supported as they make their insurance decisions and it is up to agents to find their niche in the buying process. Once your prospect has become a client, personalized contact is definitely a great way to continue correspondence including handwritten notes, mailers, follow-up calls, and personal visits. Making sure your clients are happy and that they are getting what they need out of their policy is also a great way to continue to get referrals.

The role of the insurance agent is continuing to evolve, spurred from recent advancing in technology and customers looking for the best deals during the recession. Carr states, "I don't believe the agent is going to go away, but i do believe the agent as we understand him or her today is going to be dramatically redefined."

Please give us your feedback!
Do you see insurance companies favoring those producers with more business? How has the recession affected your business? What have you done to keep your business successful during the recession?

Source: Agent's Sales Journal

On March 27th, the Professional Health Insurance Advisors Task force, part of the Executive Committee at the National Association of Insurance Commissioners (NAIC), is planning to hold a hearing on producer compensation in Austin, Texas. During the hearing the task force is requesting comments from all interested people on the following questions:

• What is or is likely to be the impact of removing commissions from what is defined as premium under the MLR requirements?
• Have commissions been reduced since the passage of the federal law? If so, what is the impact of present and potential future commission reductions? Will this cause access issues? Is it likely agents/brokers will abandon health insurance markets?
• What will be the impact of a legislative change that treats producer commissions in the same manner as federal and state taxes for purposes of calculating the MLR?
• What is your opinion on the optimal solution to balance health plan/insurer concerns, consumer interests and the interests of agents/brokers?

Please give us your feedback!
Do you currently write underage health insurance? If passed, how will the new MLR requirements impact your business model?

Sources: National Underwriter, Employee Benefit Adviser, National Association of Health Underwriting, National Association of Insurance Commissioners

Tuesday President Obama gave the State of the Union annual address. He spoke on health care stating, "Instead of re-fighting the battles of the last two years, let's fix what needs fixing and move forward." He challenged Republicans to help him improve the health care law; and, offered to help them make two changes, adding medical malpractice reform eliminating an unpopular paperwork requirement for small businesses.  Medical malpractice reform has been in the works for a while, with Republicans and Democrats butting heads on whether to have fixed caps on damages or not. However, both agree that something has to be done for the approximately 98,000 people a year who die from preventable medical errors. Also, with Obama’s suggested changes, small businesses would no longer have to file 1099 forms for payments $600 or more.

He insisted he’ll fight repeals to prevent going "back to the days when insurance companies could deny someone coverage because of a pre-existing condition" and he explained how the law is already helping seniors pay for their prescriptions and young adults continue to be on their parent’s policies. President Obama also stated he is open to small changes and will consider new ideas to bring down health care costs, urging that repealing the law would increase the federal deficit by $230 billion over the next ten years. Also, during the State of the Union, the President called for more cost-cutting in Medicare and Medicaid. Critics fear Obama is not listening to what Americans want which is repeal, not just small changes. While still others commended him for saying he is open for changes.

How do you feel about President Obama’s stand on health care reform in the State of the Union? Do you think he is open enough for change?

Berwick Renominated to Continue to Head CMS

Wednesday the White House issued a renomination of Dr. Don Berwick as the head of the Center for Medicare and Medicaid Services. Republicans, who strongly opposed him being nominated last year, dislike his controversial view in support of the British health system, supplying “eyes open or closed,” and question his qualifications and background. However, Berwick has received strong support from most major medical associations. Berwick will face a hearing in the Finance Committee as well as a confirmation by the full Senate before he becomes the head of the CMS. So far, it looks to be a difficult nomination process for him.

Do you like Dr. Don Berwick for the head of the CMS? Do you think he will pass the nomination process?

Medicare Toaster by John Hambrock

by John Hambrock for The Cartoonist Group from "The Brilliant Mind of Edison Lee"

2011 Supply Requisition

If you were busy in 2010, 2011 will be even busier! Make sure you have the right tools. Update your Med Supp materials for Mutual of Omaha, Forethought Life, Gerber Life, Sentinel Life, and Woodmen of the World/Assured Life to reflect the 2011 co-pays and deductibles.

Sources: KHN, Politico, The Associated Press

As part of the new health care reform law that went into effect January 1st, a Medical Loss Ratio (MLR) was instituted stating insurance companies must spend at least 80% of premiums on medical expenses in the under-age market, with the remaining 20% being shared with administrative costs. These new health reform rules will cut insurance brokers’ pay by 50% in some cases, effecting nearly 470,000 under-age market agents. Reports show commissions will drop from 15 to 20% on plans to 4 to 10%; and, for Blue Cross which used to pay 15% on the first year and 7% on residuals the following years will now pay 5% for both. Meanwhile, Golden Rule, owned by UnitedHealthCare is offering their brokers a per application bonus, understanding the cuts in commissions. By 2014, even without the MLR regulations, consumers will be able to find and obtain health insurance plans easily on their own. Under new health care regulations insurance agents, negotiating rates for those with pre-existing conditions, will be unnecessary. Health insurance companies will no longer be able to deny coverage based on conditions; therefore, making under-age insurance agent less and less vital for sales. Also in 2014, almost 32 million Americans will have insurance under the health care laws and MLR will negatively impact the way the public uses health care, with potential job loss due to lower commissions at a time when consumers need the most help because of all the changes. Critics argue smaller companies may go out of business, agents will see more cuts in compensation, and there will be reduced service quality to the consumer. Supporters say that industries are always changing and compare the change in the insurance industry to that of travel agents. Even though a lot of people buy their travel arrangements unassisted online there is still need for a travel agent. Now under-age insurance agents will just have to find their niche in the new insurance environment.

If you also work in the under-age market, have these lower commissions already affected you? Do you believe the result of MLR will be a drastic decline in service or do you think things will level off quickly, like with the travel industry?

Low Clearance by Mike Keefe

By Mike Keefe for The Denver Post, 01/06/11

With the Baby Boomer generation turning 65 this year and nearly 10,000 American’s a day qualifying for Medicare benefits- now is a great time to be a senior market agent selling Medicare Supplements.

Has the influx of Boomers helped your Medicare Supplement business? How are you preparing for the boost in those interested in Medicare Supplements?

Medicare "Wellness Visit" Check List

As of the first of 2011 Medicare beneficiaries are able to go to one “wellness visit” a year completely covered by Medicare. This new part of the health care law reflects that medicine needs to focus on prevention rather than waiting until the patient is sick. Dr. Eddie Phillips, director of the Institute of Lifestyle Medicine at Spaulding Rehabilitation Hospital, has outlined what patients can expect at their wellness visit this year. First, the doctor will conduct a screening of a patient’s cognitive skills, depression, and risk of falling. They will develop a Personalized Prevention Plan talking about your diet, exercise, vaccinations, sleep, and stress; and, work to coordinate all of you caregivers. Also, you can choose to have a voluntary discussion of your end-of-life choices, getting a plan in place and having your wishes known. Dr. Phillips hopes this wellness visit will help people make lifestyle choices that will positively affect their health and health care costs.

What do you think of the new “wellness visit” provided by Medicare? Have either you or one of your clients partaken of yours this year? Was it a valuable benefit?

Foresters Prepared Accident Death Term Life Insurance

Woodmen of the World/Assured Life MADP Guidelines and Iowa Rate Increase Notification

Sources: KHN, Politico, The Denver Post, CommonHealth