When Is Re-Marketing Good?

When should we re-market an account?

I know we get tagged as the anti-remarketers because we do believe that it is the last resort! However, there are instances where it is appropriate and a good thing for the agency. We reject the idea that you should re-market out of duress. This is when the client is requesting it, if not demanding it. We also reject the notion that you should automatically re-market accounts without a chat. In our "How to Stop a Re-Market" series, we identify ways to reduce the re-market ratios:

Good Re-Marketing Scenarios 😇

Post Renewal Review Rate Increase Above Agency Standard 📞

Say that 5 times fast! If after you have a review the rate is still uncomfortable for you and the client, we do agree you should re-market the account. But it should only be after confirming the client understands an inspection and you are both clear on what savings need to be obtained to move companies (as outlined in the articles above). 

When you can't apply any discounts and all is agreed upon, re-marketing is warranted. 

Non-Standard to Standard Markets 😁

When people clean up their record, we can move them to better markets with better coverage and often better commissions! If we can bring that benefit to the client, it's a win-win. If we don't, they may shop around. Now that we have helped the client rehabilitate their insurance profile, we can help them find the best market for their new record. 

Book Rolls 🎢

If your agency is engaging in a book roll, you want to help move clients from one company to a more desirable one. Oftentimes, book rolls are a very strategic and concerted effort to make it a win-win for everyone. 

Feeding Ideal Carriers 🍳

With each carrier there are certain commitments and bonus goals. When your agency can hit these targets, it can mean great opportunity for the agency. Your agency leadership may ask that you place business with identified carriers to help fuel this success. When we have to re-market or see a monoline client for these carriers, we want to put in the extra effort to place business. 

Improving Commissions 💲

Each carrier has a different commission rate. There are a few carriers that have commissions on the lower end. When we re-market someone and lose premium, we can sometimes offset it by placing the business with a higher tiered carrier. Understanding who your lowest tiered commission rate carriers are and where to place business can make your agency far more profitable. 

Market Blocking ❌

In commercial lines you may have to block the market from time to time. This is a great way to ensure an account stays with you. While we don't recommend blocking the market on every account, it is useful from time to time.