It’s time to abolish the insurance agency backlog. The days of stacks of papers on everyone’s desk are gone.
Do you remember those days? You could tell how much backlog someone had by looking at their desk. I had a co-worker that literally had stacks upon stacks at his desk.
This is not good for anyone and it honestly isn’t healthy! Let’s be honest, we have all done it and we have all seen it done, but we can no longer make excuses in a world where technology is so smart it can do half of the processes for us!
Insurance Agency backlog can be a bigger problem than we think.
What exactly is agency backlog? It is the accumulation of work that an agent/agency has yet to complete.
It includes but is not limited to pending policy applications, claims, inquiries, and other customer requests. It can not only affect our staff and agency, but it can also ripple down and negatively affect our clients.
Backlog is caused by many factors, such as a high volume of work, staff shortages, inefficient processes, tech issues, and other uncontrollable external factors.
In turn, the backlog can cause delays and bad service to our clients. Which can affect an agency’s bottom line, by causing higher operational costs.
We hope this article will help you and your staff take the agency backlog more seriously and make changes to avoid it.
Insurance Agency Backlog can also affect an agency’s reputation. Insurance agency backlog can be problematic as it can lead to delays in servicing clients and customers.
This can even result in the loss of clients. Additionally, the backlog can put a strain on staff and resources, leading to increased stress levels and decreased productivity.
So the goal is to identify the root causes. Streamlining processes is a great way to adapt to problematic issues of agency backlog.
What Causes Insurance Agency Backlog
- High volume of work: If an agency receives a high volume of requests or applications, it can lead to a backlog. This can be due to a variety of reasons, such as a surge in demand or a new marketing campaign.
- Staff shortage: If an agency doesn’t have enough staff to handle the workload, it can cause a backlog. This may be due to a high turnover rate, hiring freezes, or difficulty in finding qualified candidates.
- Inefficient processes: If an agency’s processes are slow or inefficient, it can cause a backlog. For example, if it takes a long time to process a claim or underwrite a policy, it can lead to a pile-up of work.
- If your agency makes TOO MANY PAYMENTS this can cause a backlog too. Check out our FREE guide on how to get more clients on EFT or Pay In Full.
- Technical issues: If an agency’s computer systems or software are outdated or malfunctioning, it can lead to a backlog. This can cause delays in processing applications or claims.
- Management System User Error-All agencies have some type of management system, but if that system is not used properly it can cause a backlog. Staff need to be trained and need to understand the management system and how to use it properly.
- External factors: Some factors outside of an agency’s control can also cause a backlog, such as natural disasters or regulatory changes. These can lead to a surge in requests or an increase in workload that an agency may not be prepared for.
What are the Side Effects of Insurance Agency Backlog to the Agency?
Overall, a backlog can occur due to various reasons, and it’s essential for agencies to identify the root cause and take steps to address it to prevent further backlogs from occurring.
This can cause delays in getting back to clients. It can make the customer experience less than favorable. Here are some examples of what agency backlog causes:
- Delayed Processing of claims: A backlog in an insurance agency can cause a delay in processing claims, which can be frustrating for policyholders who are waiting for their claims to be settled.
- Increased workload: Increased workload: A backlog can increase the workload on the agency’s staff, leading to longer work hours, stress, and a decrease in productivity.
- Higher Operational Costs:
A backlog can also increase operational costs, as the agency may need to hire additional staff or pay overtime to clear the backlog. – Therese Potter
- Customer Dissatisfaction: If customers experience delays in processing their claims or receive poor customer service due to a backlog, they may become dissatisfied and switch to a different insurance provider.
- Compliance Issues: A backlog can also lead to compliance issues, as insurance companies are required to process claims within a certain timeframe to comply with regulations. Failure to meet these requirements can result in penalties and legal issues.
Agency backlog can have a negative impact on staff, customers, and the agency. It can ruin an agency’s reputation with low reviews and customer satisfaction rates and lower retention.
“Clients can become frustrated and go to other agencies because they are receiving delayed service, and it is inconvenient.” -Therese Potter
It not only has satisfaction risks but can also cause a financial burden on all parties involved if changes are not made and an accident happens and can also open up E&O claims.
How to Abolish Insurance Agency Backlog
So how do we solve it? To abolish insurance agency backlog, there are several steps that can be taken:
1. Automate Processes: Utilize technology to automate as many processes as possible. This will not only speed up the processing time but will also reduce the chances of errors and mistakes.
2. Prioritize Workload: Prioritize the workload based on urgency and importance. Make sure that the most critical tasks are completed first to prevent delays and backlogs.
3. Improve Communication: Establish clear lines of communication between the insurance agency and the policyholders. This can be achieved by using various communication channels such as email, text messaging, and phone calls.
4. Outsource Services: Outsource certain services such as data entry and claims processing to a third-party service provider. This can free up valuable time and resources for the insurance agency to focus on more important tasks.
a. Need help with job descriptions? We have those too!
5. Increase Staffing: Consider increasing staffing levels to handle the workload. This may involve hiring more full-time employees or utilizing part-time or contract workers during peak periods.
6. Embrace Technology: Agents have to embrace the technology they have and use it to its full potential.
7. Continuously Monitor and Review Processes: Regularly monitor and review processes to identify areas for improvement. This will help to streamline processes and prevent future backlogs.
By implementing these steps, insurance agencies can abolish backlogs and improve their overall efficiency and productivity. It is also important for an insurance agency to prioritize the work in the backlog based on urgency and importance.
This can help ensure that the most critical tasks are addressed first and that clients receive timely and effective service. Regular monitoring of the backlog by using charts and dashboards that APP can provide when we work with your agency will help leaders stay on top of the issues and take appropriate measures to prevent them from recurring in the future.
How can APP help with How to Abolish Insurance Agency Backlog? Check out our school, which has a variety of courses to help retrain your staff on many different processes and procedures that may be building and creating on their own individually, which WE DON’T WANT.
How to Address Changes with All Staff, even the seasoned staff.
- Communicate the reason for the change: Start by explaining why the change is necessary and what benefits it will bring. Make sure that you provide a clear and compelling reason that everyone can understand.
- Address concerns: Employees may have concerns about the change, so it’s important to address them proactively. Create a forum where employees can ask questions and voice their concerns. Answer questions honestly and be prepared to listen to feedback.
- Provide training: Ensure that staff receives adequate training to implement the change. This will help to reduce resistance and increase confidence in the new process.
- Involve staff in the change process: Involve employees in the change process by seeking their input and feedback. Encourage them to share their ideas on how the change can be implemented effectively.
- Communicate regularly: Communicate regularly with staff throughout the change process. Provide updates on progress and address any concerns that arise. Celebrate even the smallest of successes in the forward motion of change and have consequences if they do not follow the agency’s plan. Consequences will show everyone on staff you are serious about the change.
Influencing seasoned staff to adapt to new processes can be challenging, but here are some steps you can take to help them embrace change and get tasks done quicker, here are some more ideas:
1. Understand their perspective: Before you can effectively influence someone, you need to understand their perspective. Talk to the senior staff member and find out why they are resistant to change.
Are they afraid of technology? Do they think the new processes will be too complicated? Once you know their concerns, you can address them and find solutions that work for everyone.
2. Highlight the benefits: Change can be difficult, but it’s often necessary for growth and progress. Make sure the senior staff understands the benefits of the new processes.
For example, if the new processes will help them complete tasks more quickly, emphasize how this will free up time for other important activities.
3. Provide training: Again training is essential to help staff members learn new processes. Make sure the senior staff receives comprehensive training and support to help them adapt to the new processes. Consider offering one-on-one training sessions or workshops to help them get up to speed quickly.
Here at APP, we can help with that book an intro meeting with us to find out how!
4. Lead by example: As a leader, it’s important to model the behavior you want to see from your team. Embrace the new processes yourself and demonstrate how they can improve efficiency and productivity.
5. Celebrate success: When the senior staff successfully adapt to the new processes and complete tasks more quickly, make sure to celebrate their success. Recognize their hard work and effort, and use these positive outcomes to reinforce the benefits of change.
Remember, change takes time, so be patient and persistent. Keep communicating with the staff, address their concerns, and provide ongoing support to help them succeed.
By following these steps, you can present change to staff in a positive and effective manner, and increase the likelihood that the change will be embraced and implemented successfully.
Overall, agency backlogs can have a significant impact on an insurance agency’s ability to function effectively, maintain customer satisfaction, and remain profitable. It is essential for agencies to have strategies in place to manage backlogs and ensure that work is processed in a timely manner.
By following these steps, you can present change to staff in a positive and effective manner, and increase the likelihood that the change will be embraced and implemented successfully.
Backlog in any industry is bad, but in the insurance industry, it can cause many problems for staff, clients, and the agency in general.
We have to start taking responsibility and action, some agencies don’t even know about the backlog because they don’t get reports from their systems to determine what tasks are overdone.
So we also need to make sure we are tracking numbers with our management system.
So to those who still have stacks of paper on your desk, you can’t hide and are still using notepads (watch a throwback video of Kelly talking about dirty desks and notepads).
It is time to open your eyes and adjust to what the world has become. We are in a digital world where everything we do should be electronic.
The good news is everything is at everyone’s fingertips, the bad news is you can’t do it the old way anymore, you MUST adjust.
So open your mind to new ideas and new ways and stop doing things more than once, start the process, and end it in the management system.
It is possible because we have trained agencies and they have put it into place and had success with the implementation, Everyone is much happier!
