Cost Effectiveness Through Policy Holder Retention Among Independent Insurance Agents – A Conceptual Background

Abstract

Retaining the customer is a significant element for running a successful business. It’s not just about gaining new business, but also about keeping the being customer satisfactorily in the business. In the moments of this competitive business world, retaining the clients can have a significant impact on the business and its cost. A happy client is likely to return, relate others, and spend further on the brand, making client or customer retention a precious investment for businesses of all sizes. The customer experience with the business and the product is a pivotal factor in customer retention and accession success. Converting a being client to a valuable client doesn't be overnight process and it takes time and fidelity. Tracking the client trip, engaging with them regularly is needed. An agent serves as a representative for the insurance company, fulfilling the roles of both a salesman and a provider of client service to insurance policyholders. In the insurance industry, the retention of policyholders holds greater significance than in other sectors, as the long-term success of the company relies on policy renewals and maintaining ongoing relationships with clients.Creating a good pious relationship with frequenter policy holder in insurance sector will leads to further referrals in turn helps to increase the business. This paper is a significant step forward to understand cost effectiveness through client retention giving high significance to independent insurance agents.