Back to basics: growing your life insurance business with data mining and database management

By Ken Godfrey

Life Insurance Financial Evaluations, LLC


The top life insurance producers in the industry realize that their best customers become repeat buyers and refer their friends who need insurance planning. To increase the number of clients that fall into this category, proactive customer service is essential.

Life insurance agents and agencies who desire to increase sales and customer satisfaction can do so by returning to the basics of better business management. By simply updating and maintaining an accurate client list and periodically data mining the life insurance policies for opportunities, efficient management of an agent’s block of business can be achieved.

The top life insurance producers in the industry realize that their best customers become repeat buyers and refer their friends who need insurance planning. To increase the number of clients that fall into this category, proactive customer service is essential.

Maintaining an accurate client list that includes information on all policies sold is important in this endeavor. Without an accurate client list, it is very difficult to determine which life insurance policies need the most attention and/or uncover new sales opportunities. Data mining a client list can:
  • Identify which term policies are soon to expire

  • Identify when the conversion privileges for term insurance policies end

  • Identify which term policies are annual renewable term

  • Identify which permanent policies are in danger of lapsing prior to reasonable mortality expectations

  • Confirm that guaranteed death benefits continue to be in place

  • Determine which permanent policies have loans that need to be monitored
Maintaining an updated client and policy list requires a close level of attention. To obtain the needed information to effectively data mine, the insurance agent should periodically run inforce illustrations of permanent policies and include the details in the database. These should be run even when the agent is not planning to see the client.

Periodically running inforce ledgers and maintaining the database will allow the agent to more effectively target the customers that need the most attention. With this information, the agent may identify new sales or replacement opportunities, increase premiums on existing policies or identify life settlement opportunities.

In addition, having an up-to-date client database can allow agents/agencies to verify commissions are paid accurately by the insurance carriers. Many insurance carriers have gone through multiple mergers and acquisitions and work with archaic or numerous client data and commission processing systems. Insurance carriers often pay commissions in error and many insurance agents/agencies forego substantial revenue since they do not have procedures in place to audit the results.

With proactive business management through routine data mining, agents can anticipate potential issues and address them before the client contacts them with concerns. Therefore, agents may avoid the time consuming tasks of troubleshooting urgent client issues and putting out fires when the client calls. This will allow the agent to better utilize their time and manage their schedule more effectively. The end result is a happier, more satisfied client, a more efficient agent, an increase in revenue, and quite possibly, more life insurance sales.