The Importance of Client Onboarding: Transforming New Clients into Loyal Customers 

• By: Nancy Germond
• September 16, 2025

I was on vacation recently and wherever I travel, I notice the names of insurance agencies. One that in particular struck me was an agency with the words “Price Shopper” in its name. There’s little doubt that in today’s insurance market, price is probably the first consideration your potential clients will stress when you discuss their insurance needs. However, as seasoned agents know, price is probably only one minor concern savvy consumers should consider when it comes to their insurance choices. 

So how do today’s top agents manage cost concerns while building customer loyalty?  

Building Customer Loyalty 

Building customer loyalty must be a top priority for insurance agents, especially in this highly competitive, price-driven market. According to a recent J.D. Power study, 57% of customers of over 12,000 surveyed said they “actively shopped for insurance in the past year” (April 2024 through January 2025).  

While most agencies focus on ensuring customer satisfaction, satisfaction alone does not guarantee you will keep that client. Many “satisfied” customers will leave, which often surprises agents, who believe they have a good relationship with that client. With client acquisition costs in personal lines insurance estimated at $300 to $800 for an auto customer and $300 to $700 for a homeowners customer, it more important than ever that you keep that client. 

Why Client Onboarding Matters 

High client retention ratios correlate directly to agency profitability. New business acquisition is labor- and time-intensive, costly and often frustrating for producers, while losing current clients impacts revenue. A well-structured client onboarding process helps with the following.  

•  Improves customer loyalty 
• Increases cross-selling opportunities
• Reduces client turnover 
• Builds a stronger local reputation as a first-rate agency 
• Expedites claims handling, especially important in workers’ compensation first report of injuries 
• Helps to prevent errors & omissions claims by improving communication between the agent and the client 

There are steps agents and agency management can take to retain their hard-earned clients. An important first step is to develop an effective and formal client onboarding process. We’ll discuss an approach that effectively builds loyalty and strengthens long-term relationships. 

Building a Strong Onboarding Process 

A clear, standardized and formal onboarding process ensures consistency, saves time for agency staff and presents a professional image to your clients. Additionally, establishing a process helps to ensure all your agents are heading in the same direction. 

Here’s how to begin.  

Create a Client Onboarding Checklist 

Like your agency procedures manual, develop a client onboarding procedures checklist. According to the bestseller The Checklist Manifesto,” by Atul Gawande, in complex situations, even experts can benefit from using checklists to ensure consistent and reliable performance. Checklists can prevent mistakes by addressing the limitations of human memory and attention, especially in high-stakes environments like surgery or aviation. And believe it or not, insurance is high stakes. Ask any agent who’s been the party to an errors & omissions suit.  

While Gawande emphasizes that while checklists do not replace expertise, they offer a structured way to apply knowledge effectively and minimize communication gaps and failures.  

Design a step-by-step checklist for your agents, which you should encourage them to use consistently. Keep it simple, avoiding industry jargon or unnecessary acronyms. This ensures that your new employees can execute tasks without needing added guidance. If your agency serves multiple industries, consider tailoring checklists for specific client needs, such as construction, manufacturing, or healthcare. 

Ensure Accurate Data Entry 

Mistakes during data entry can erode trust. For example, forgetting to include “LLC” after a business name may lead to reissuing certificates—a frustrating experience for clients—or worse, a coverage battle. 

Double-check all entries to prevent these avoidable errors. Many agents also ask for copies of vehicle titles to ensure that they’re confirming vehicle ownership.  

Send a Comprehensive Welcome Package 

Here’s a tip: Don’t wait until you bind coverage. If you quote, send a hand-written thank you and some information about your agency and some reasons why your agency is the logical choice to fill their insurance needs. However, if you do bind coverage, immediately send the following key information. 

Team Contact Information  

To me, communication is critical. The more your clients know whom to contact if they have questions or concerns, the more likely they are to turn to you for advice rather than a cold-calling competitor.  

Clarify who handles specific tasks within your agency. For instance, clients should know that support staff are the golden geese for issuing certificates, making changes to their policies, or if they have basic questions such as, “Hey, I bought a new car. When should I add it to my policy?” 

 Additionally, share the contact details of team members who can support the client’s broader needs, such as safety consultants or claims personnel. 

Policy Details  

Inform your client about the expected policy arrival date and provide clear instructions for whom to contact in case of delays. This is especially important for policies delivered by your carriers.  

Relevant Marketing Materials  

Include a current agency newsletter or other helpful content tailored to their insurance profile. Mention added services or products your agency offers, such as life or health insurance or other specialized coverages. 

Claims Process Overview  

Provide direct reporting information for claims and set follow-ups to track progress. Because clients often change carriers, it’s best if your website has the most current contact information for all the insurers that prefer direct claims reporting. If you provide the numbers for their current carriers, you’ll need to update each time you move their coverage. Creating a website claim landing page can reduce your administrative time and reduce claims reporting timelines.  

How the carrier handles your customer’s claim is probably the most critical issue in client retention. If a carrier mishandles a claim, often the client transfers that criticism to you. Therefore, when you discuss the claim process, encourage your clients to reach out directly to their agent if things go sideways on their claim.  

Here are a few steps you can take to ensure the new claim process goes smoothly.  

• Call a few days after an incident to confirm your client has heard from an adjuster.  
• Reach out two weeks after the incident for updates on the claims process. 
• Touch base once the claim is closed to discuss performance and address any challenges faced by the client. 

Encourage Engagement 

Foster an ongoing relationship by inviting the client to do the following. 

Connect on your social media channels for updates and tips. 
Schedule staff training sessions to streamline reporting on incidents or injuries. 
Automatically subscribe them (with an unsubscribe option) to all of your ongoing communications such as newsletters.  

Schedule Regular Check-Ins 

Consistent communication is key to building loyalty and identifying emerging needs. Set reminders in your agency management system to reach out bi-monthly or quarterly. These check-ins enable agents to uncover new opportunities for coverage while addressing changes in the client’s circumstances, such as the following.  

• Changes in equipment or property 
• Adjustments to payroll or staff 
• Personal milestones, like a new baby in the family or that new rottweiler dog they added to their family 

Prioritize Your Most Profitable Clients 

Invest your time and resources wisely. High-value clients—those generating significant revenue and offering potential referrals—deserve frequent, meaningful contact. Their loyalty can serve as a foundation for your agency’s growth. 

However, we caution against using terms like “Term 1” and “Tier 2.” These can make E&O claims more difficult to defend if opposing counsel learns of this tiering system. Imagine sitting on the stand and answering this question from the opposing counsel: “So I see this is a Tier 2 client. Would this have happened if this client was a Tier 1?”  

Combatting Competition 

Your clients face many solicitations from competitors from many sources—direct mail, cold calls, television and social media ads and advice from those brilliant consumers on apps like Nextdoor. A thorough and professional onboarding process can create a lasting impression and position your agency as a trusted partner. By standardizing client communications and delivering exceptional service from the outset, you reduce the likelihood of clients meeting with other agents. 

Additionally, your staff will be more productive when they don’t need to field emails or phone calls from your clients who ask, “How do I file a claim?” or “I need a certificate of insurance. Who do I contact?” 

Final Thoughts 

Onboarding not only welcomes a new client, but solid onboarding also provides the foundation for a long-term relationship. It is much more profitable to retain a long-term insurance client than to find a replacement account. 

By focusing on clear communication ensuring your insured knows where to go when they have questions, proactive client engagement and consistent outreach that goes beyond that yearly renewal questionnaire, agencies can enhance client loyalty, reduce client churn and improve profitability.  

Establishing an effective client onboarding system today to quickly see the benefits reflected in your client retention rate and your bottom line. 

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