So, you’ve run a well thought out and executed marketing campaign to promote your fee protection scheme, yet many clients who were previously in the scheme haven’t responded. They bought into the benefits last year and some even made claims, so what’s the problem now?
We’ve come across this scenario many times at Croner Taxwise Fee Protection and often there isn’t really a problem at all. The client is happy to renew the insurance, but they just haven’t got round to it. They’ve put it to the bottom of the pile, intending to look at it later, not realising how important it is that their cover doesn’t lapse and perhaps not understanding the heightened risk of investigation nowadays.
Running an insurance business with a renewal rate of over 90% for the last 10 years, we know a bit about renewing insurance, so we thought we’d offer a few tips on ways to get your clients re-signed before your renewal date.
- Always ensure that you give your client enough time to respond. We recommend that you send your renewal invitation 4 weeks prior to the date of renewal
- Make it clear and simple for your client to pay. Using PayPal, direct debit or online facilities really does get better results
- Run a follow up campaign 2 weeks prior to date of renewal – stress the importance of continuation of cover
- Give your client a call; remind them that you haven’t received their renewal payment.
If you’ve been disappointed with your take up this year, talk to our marketing department. We have tried and tested methods of marketing Fee Protection and we’re always keen to have feedback, good or bad.
A lesson learned the hard way…
A merchandising company forgot to post their renewal paperwork to their accountant and their cover lapsed. Subsequently an Inspector from HMRC informed the client of their intention to open an aspect enquiry into their tax return. As the policy between Croner Taxwise Fee Protection and the accountant is a ‘claims made’ insurance, their claim was rejected because the client wasn’t included on the renewal list sent to Croner Taxwise.
The accountancy fees for dealing with the investigation ended up being in excess of £3,000 and left both the accountant and company in a difficult position. The client hadn’t realised the consequences of sending in his renewal paperwork late and felt the accountant should have done more to make him aware of the need to renew on or before the renewal date.
The accountant struggled to get his fees paid and eventually gave the client a discount to smooth over the relationship.