Staying connected with customers who relocate

1 in 4 insurance consumers agreed that the pandemic has made them rethink their current living plans

In today’s world, consumers are often on the move, even changing their living situations to better meet their personal needs. A recent Agency Forward survey illustrated this trend, as 1 in 4 insurance consumers agreed that the pandemic has made them rethink their current living plans.

As such, the rules have changed when it comes to retaining and attracting clients. For insurance agents, it’s worth understanding what the relocation of customers means for their business and how to best stay connected.

How relocating customers impact insurance agents

While being located nearby their insurance agent is vital to some customers, this isn’t the case for all. Agents often overestimate how important proximity is for their clients. Although 57% of insurance agents reported that they believe their customers value being physically located nearby, only 44% of consumers confirmed that having an agent in close proximity was crucial.

In contrast, not all business owners feel the same about how important it is to have an agent nearby. While only 47% of small business owners reported that it was critical for their insurance agent to be close to their location, it was deemed more important for middle-market business owners—with 82% listing agent proximity as a priority. These numbers indicate that retaining customers who relocate may be one of insurance agents’ biggest challenges, while winning over new business beyond typical geographic restrictions presents new opportunities.

Agents are already largely aware of their growing potential to win new business in different locations, as 61% of agents reported that they plan to invest in finding new customers outside of their local area. It’s important for insurance agents to realize that there are steps they must take to operate successfully and stay connected with their clients amid these changes.

Attaining licenses in multiple states

To start, insurance agents will need to obtain the proper licensing to expand their abilities to service clients in various geographic regions. This may require attaining licensing in multiple states. Insurance agent license requirements vary by state but have some common elements.

Typically, an agent will need to obtain one or more of the following¹:

• A first-time license
•  A new license
• A reinstatement license
• An added line of authority to an existing license

A good place for agents to start is to identify which states they would like the ability to service clients in and learn about the necessary requirements in those states. Here are some steps to take when looking into multistate or nonresident licensures:

• Learn about nonresident licenses—Generally, a nonresident license is what an out-of-state agent would seek to obtain. The respective state Department of Insurance website may provide more information about this process.
• Meet pre-licensing requirements—The requirements to attain multistate or nonresident licenses differ between states. One common requirement is for agents to first obtain a license in their resident state. Other requirements could vary, such as passing a state-specific exam.

A good place for agents to start is to identify which states they would like the ability to service clients in and learn about the necessary requirements in those states. Here are some steps to take when looking into multistate or nonresident licensures:

• Learn about nonresident licenses—Generally, a nonresident license is what an out-of-state agent would seek to obtain. The respective state Department of Insurance website may provide more information about this process.
• Meet pre-licensing requirements—The requirements to attain multistate or nonresident licenses differ between states. One common requirement is for agents to first obtain a license in their resident state. Other requirements could vary, such as passing a state-specific exam.

Understanding state licensing requirements is an essential first step for agents to consider before expanding their operations across different geographic locations. These requirements may inform agents’ overall strategies for retaining and staying connected with relocating customers.

Staying connected

In addition to obtaining any necessary licensing, here are some steps that agents can take to stay connected and succeed with customers who relocate²:

• Document licensing clearly—Agents should document their licensing clearly and keep it updated. Doing so can get complex for agents servicing multiple states, but having these credentials is critical for building trust with clients in any location.
  • Inform customers of expanded abilities—As agents take steps to service clients in multiple states, they should keep them informed on any expanded abilities. This can refer to licensing, but also how agents intend to better serve customers who have moved or new customers who already live in distant regions.
• Build a strong digital presence—Agents will also need to enhance their digital presence in order to effectively expand into new markets and attract customers across different geographic locations. Some ways to do this include crafting a successful agency website, utilizing social media or other industry-specific platforms to engage with the insurance community, providing thought leadership through online content, and attending or hosting virtual events (e.g., webinars or networking sessions). The Agency Forward Guide to Digital Marketing in an Uncertain World can help agents improve their digital presence.
• Train teams on current technology best practices—To better service customers who are relocating, it will be necessary for insurance agents to train their employees on any subsequent operational changes and technology best practices. While this may include understanding the licensing requirements of different states, it also may entail ensuring that employees are competent in using new virtual tools (e.g., video platforms) to service clients. Insurance consumers are using technology in new ways, which means that agents should as well.

While insurance agents won’t need to completely alter their operations to service relocating customers, certain adjustments are necessary to stay connected. By implementing these initiatives, agents can successfully adapt to the insurance industry’s evolving landscape—retaining clients as they relocate and attracting new business far beyond their local community.