The Power of Positive Interactions for Insurance Customer Retention
- Brookelle Hunter
- Apr 17
- 10 min read
Interactions with customers are a constant at an insurance agency. Some are more in-depth and time-consuming, others are brief and straightforward.
While you'll have dozens of these interactions every day, each one is the only interaction the client will have with you that day.
Every phone call, email reply, chat response, and in-person conversation is likely the only interaction they'll have with your agency that day.
However the interaction feels - whether friendly, positive, efficient, rushed, negative, or even mundane - that's the impression that will stick with your customer until the next interaction.
According to Zendesk, research tells us that ~50% of customers feel inclined to switch to another company after just one negative experience.
This statistic might trigger feelings of overwhelm - it does for me! None of us are perfect. We're all human and have days when it's hard to show up with a positive attitude.
So, if a negative interaction can have such an impact, could a positive interaction have an opposite and equal impact?

Yes and no.
Yes, it can encourage loyalty in your clients, but just one isn't enough.
Scientists have said it takes 3 positive experiences to outweigh the effects of 1 negative experience. Much of this has to do with the human tendency to fall into negativity bias (Forbes).
Psychologist Rick Hanson said, "The brain is like Velcro for negative experiences, but Teflon for positive ones." (if you're about to google "what is Teflon?" like me, it's the material commonly used on non-stick cookware.)
You cannot magically eliminate this human tendency in your clients - it's entirely out of your control.
What CAN you do then? Create positive interactions with your clients to outweigh any perceived negatives.
In this blog post, we'll discuss
Why positive interactions matter at your insurance agency
What makes a positive interaction
Actionable tips for creating positive interactions at your agency from day to day
Why do positive interactions matter for your agency's customer retention?
According to Insurance Journal,
"Insurance buyers do business with an agent because they expect to receive positive value – not just the product itself but also in-depth information – and help in finding the best coverage and assistance with other issues."
As an agent, you have a uniquely intimate relationship with your customers. You're not just selling a product. You're helping people find security. You see people in vulnerable and emotional situations.
Trust is important for all industries, but especially insurance. If your clients don't trust that you have their back, they won't be with you long.
Nurturing your current clients
Client loyalty is cultivated through many small and simple experiences over time. We humans often fall into the thinking distortion that the little things aren't worth our time because they're seemingly insignificant compared to larger, grandiose acts or ideas.
Roughly 5 years ago, I got myself a small Philodendron plant. It had ~10-15 leaves and fit in a tiny 2"x4" rectangular pot that fit in my hand when I first got it. (pictured below)

Over the years, this little philodendron has grown, started to die, practically risen from the dead, outgrown its original pot, been repotted, suffered root rot, and been repotted again (a few times actually…getting the drainage right is more complicated than I thought it would be).
And today - what started as a baby philodendron has become not only one much larger, thriving philodendron but has also been propagated into 2 new, thriving plants that are slowly but surely taking over my apartment (in the best way).
I'm no plant expert. I've slowly learned how to care for my plants through trial and error (and many Google searches, of course).
What has kept my plant alive isn't some magical pot I bought once, although finding its current pot HAS made a considerable difference.
About 90% of what has kept my little guy growing and expanding is small, consistent acts.
After potting with the appropriate soil in the right pot and finding a spot in my apartment that gets the right amount of light, I water it and check the soil ~once a week. It takes maybe 5 minutes to water all the plants in my apartment. It's easy to do consistently (with the addition of fertilizing once a month in spring and summer). These small acts of consistency create a resilient philodendron that will continue to grow.
The beauty of that consistency is that if I forget to water it for a couple of weeks, the plant isn't going to die instantly - it's resilient. I can pick up where I left off to keep taking care of it.
You're probably waiting for me to get to the point, so here it is (if you haven't already guessed): Your client loyalty can be a lot like my plant!
Some parts of the customer journey might stand out to you - claims, renewals, policy changes, etc. These bigger moments are like the pot that allows me to water the roots without soaking the soil (thus helping the plant avoid root rot), or repotting the plant when it gets too big. These are evidently vital to the health of your client base.

The brief but consistent soil checking, watering, and fertilizing represent the smaller, positive interactions you must create to keep customer loyalty alive! Without regular watering, that plant will eventually die.
Without small, positive interactions with your clients, their loyalty isn't being nurtured. Their loyalty will eventually wither, and they'll decide to try another agent down the street.
What makes an everyday interaction positive?
Personal
In today's chaotic climate of consumerism, it's safe to say we get more than enough generic messaging from companies and brands who don't know us personally.
The endless marketing emails and ads placed in front of us by algorithms don't feel personal despite being somewhat relevant. They lack the human touch that we crave.
As an insurance agent, you have the rare opportunity to truly get to know your customers. Make every interaction personal, even if that's just using their name! It goes a long way.
Empathy
What does a "positive interaction" look like when you're face to face with a customer who just lost most (if not all) of their personal belongings and the roof over their head?
Positivity without empathy isn't going to get you very far.
Sometimes, a positive interaction ends with a simple "Have a great day!" Other times, it's validating your client in a very emotional and stressful time, letting them know you're there for them and that you'll be in touch.

Another note on Empathy: I think we hear the word empathy and it feels heavy. At times, having empathy IS heavy, but it can also be as simple as being present in the moment with someone, acknowledging that you see where they're coming from. Empathy could show up as being excited for your client who is getting married or expecting a baby and/or being sensitive and present with a client who has just experienced a loss. No, you're not a therapist, but showing kindness and compassion to your clients in these situations will create meaningful interactions that will deepen your relationship.
Active Listening
Learn to read the room. Listening to your client's verbal and nonverbal communication, and handling their experience and feelings with care are vital for a positive interaction.
Ask follow-up questions - whether you're discussing their policies or their son's little league tournament over the weekend. If you're not sure you understand what your client is communicating, don't pretend you do. Ask questions.
Transparency and Proactivity
Transparency and proactivity also help to facilitate positive interactions. Keeping your clients in the loop during claims, renewals, changes in your office, etc. goes a long way in building and maintaining trust.
Birthday calls, care calls, holiday postcards, and policy reviews are all proactive ways to nourish client loyalty.
No Shortcuts
There's no shortcut for keeping my plants alive and thriving - no magic product that makes it so I don't have to water it. The only way to nurture it is by simple, consistent acts over time.
Just like there's no substitute for regularly watering my plants over the years, there's no substitute for these small, positive interactions with your customers over time. One grand gesture a year won't cut it (especially if it's only because their renewal is coming up.)
A Positive Interaction in Action
Take a minute and think about your last memorable positive interaction with someone as you went about your day.
Mine happened just 20 minutes ago - at my favorite coffee shop.

One of the baristas there said hello to me by name. He asked how I was, then followed up by asking how my little sister's play went (which I had told him about last week).
He remembered that I told him I work in marketing. He also thanked me for coming into the shop before I left.
The interaction was likely less than 5 minutes, but I left feeling happy and excited for the next time I go back.
The coffee? It's good. It's honestly nothing to write home about, but the consistent positive interactions and the welcoming vibe of the coffee shop are why I continue to go back a couple times a week.
We previously talked about making interactions personal - the barista simply remembering my name and using it when I walked in is a perfect example of that. Being specific and personal to your clients helps them feel seen. When your clients feel seen and understood by you, their trust in you grows.
Active listening is another vital part of these interactions. The barista could have just asked me how I was and moved on, but because he had been a great listener to me before, he had specific things to ask me about (my sister's play). His active listening on a previous occasion allowed him to make me feel important and valued.
Other elements that make a positive interaction:
Gratitude
Verbally expressing your gratitude is one thing - you can also show your clients your gratitude by prioritizing them and asking for their feedback. This shows you value them.
Authenticity - be you!
Be authentically you! Not a naturally bubbly person? That's ok! Apply these elements in a way that is natural to you.
Being authentic will attract people who want someone like you as their agent. You're not for everyone, and that is perfectly fine. Your people will find you and stay with you when you show up as yourself - not a scripted idea of what an insurance agent "should" be.
Problem-Solving
Finding a quick solution for a customer is ideal, but when you need more time to nail something down, clearly communicate what you'll do and when you'll follow up with them to ensure the problem is solved.
Ensuring Clarity in Communication
Miscommunication happens, but you can avoid it by practicing transparency with your customers. Setting expectations and keeping your clients in the loop will give way for more positive interactions to occur.
Confusion and vagueness won't set the stage for a positive experience. Most people respect those who are transparent with them.
To ensure clarity in your communication, keep it as jargon-free as possible.
As an insurance customer, reading over a policy is one of the most confusing experiences for me. Trying to figure out what my coverage includes should not be so difficult. Don't make your customers even more confused by your explanations. Keep them straightforward.
Actionable Tips: Improve customer retention by creating positive interactions at your insurance agency
Finally! Some action items for you:
Implement a customer outreach program.
A consistent customer outreach program creates the perfect environment for positive customer interactions to take place.
You should proactively communicate with your customers about policy changes, review meetings, and renewals.
Thoughtful birthday cards or birthday calls/texts, care calls, onboarding calls, holiday cards, email newsletters, etc. are all opportunities to create positive interactions with your customers.

When you're regularly reaching out to your customers, it also gives them the opportunity to ask questions or tell you their concerns that, if left unsaid or unresolved, can fester and become an even bigger issue down the road.
*Engagex Feature Spotlight: Our callers are on the lookout for potential retention risks for agents who use Engagex to help with customer outreach. When a client brings up issues or tells a caller they are shopping around for another agent or insurance company, the agent receives a "Retention Alert" notice for the specific customer so you can reach out and (ideally) solve their issue and keep them from canceling.
Regularly conduct policy review meetings.
Regular review appointments with your customers serve many purposes. When done with proper preparation, these meetings are the ultimate positive interaction.
You get to know your clients, and they get to know you. You get to educate them on what options would be best for them. They get peace of mind knowing everything is where it should be - it's a win-win.

Even just attempting to schedule a review meeting creates the opportunity for a positive interaction - customers who decline the invitation will still know you're being proactive and looking out for them.
Ensure well-being among your team members - happy employees → happy customers
If you have a large book of business, it's safe to assume that your team members are the ones who interact with your clients the most. If your team isn't taken care of, it's much less likely that they'll be in a headspace to create these vital positive interactions.
Here are some questions to ask yourself to reflect on how your team might be doing.
Does their role/schedule/workload allow for a healthy work-life balance? If not, how can you change that?
Are there opportunities for your team members to grow professionally at your agency?
Read more about employee well-being in this blog post: Why You Need to Prevent Burnout at Your Agency (and how to do it) (8 min. read)
Ask for and consider client feedback.
You make mistakes. We all do. Or maybe something you've been doing that you thought was helpful turns out not to be. That's why it's critical to consistently ask for feedback from your clients following interactions with them.
Be open to their perspectives, even if you don't fully agree with how something happened.
Knowing what people want from your interactions (within reason, of course) is a simple way to improve those interactions.
Ensure Team Unity
Keeping your team on the same page regarding your agency's mission, goals, priorities, and procedures is essential to consistent, positive customer interactions.

There's nothing more frustrating than having to repeat your issue 3 different times to different people who all give you different answers or resolutions. Keep detailed notes of client interactions and train your team on how they should respond to various situations to maintain consistency.
Consistently creating positive interactions with your customers will improve your agency's retention, growth, bottom line, and (not to mention) your mood.
This blog post has a lot of information, and I know it can get overwhelming.
Instead of trying to implement everything at once, choose one thing from the "Actionable tips" section and start implementing it today.
What will you do to create more positive interactions at your agency? Let us know in the comments below!
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