Last month, we talked about the impact of employee turnover and the amount of sales effort required to replace those losses. Our conclusion was that a basic conversion program helps brokers get off the attrition treadmill and use new account sales to grow the block rather than stay even.
If an important part of conservation is helping departing insureds to keep their coverage through a non-payroll remittance mechanism — then the key question is, “How do we improve our (typically) 5 percent conversion rate?” The most important step is to use a carrier’s conversion program as one of your criteria in selecting a carrier in the first place. How good is their program?
How do they research their process and its effectiveness? Unless you work with one of very few carriers, you’ll find that most insurance companies do very little to encourage conversion. They probably supply the plan administrator with some brochures and forms and hope for the best.
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