As we approach the end of 2024, insurance agents may want to consider taking an inventory of the agency’s coverage over the past year. This process involves analyzing the types of policies offered, their uptake, and their performance. An inventory allows agents to reflect on the past year, identify strengths and weaknesses, and plan for better alignment with market trends and client needs in 2025. Here’s how to organize this important year-end review.
Review Insurance Coverage
Begin by reviewing the types of coverage your agency offers, including personal, commercial,
and any specialty insurance options, like flood, earthquake, cyber liability, and pet insurance. Take note of the breadth and depth of your offerings and identify any gaps or redundancies. Some trends to consider include cybersecurity insurance, gig worker insurance, and parametric insurance.
Evaluate Your 2024 Metrics
Next, go over your policy uptake over the past year. Know your numbers, including the following:
- Number of policies sold by type
- Whether there was growth or decline compared to 2023
- Frequency of claims by policy type
- The average payout for each claim
- Overall profitability by policy type
Review any customer feedback over the past year, including satisfaction with claims handling and suggestions for new or improved coverage options. In doing so, you may notice some trends, including increased demand for flood insurance due to extreme weather and growth in cyber liability due to rising digital risks.
Determine the Most Useful Coverages of 2024
Review which policies had the highest demand and which policies retained the most customers over the past year. Which policies generated the most revenue and delivered the highest profitability? Were there coverages that consistently delivered value while minimizing administrative costs or claims payouts?
Record which policies had the highest satisfaction scores for claims resolution. Were there products that clients praised for fast, fair, and efficient claims processes?
Did new or specialized products, like cyber insurance or climate-responsive policies, such as wildfire or windstorm coverage, show notable growth? Are there any trends indicating that certain coverages are becoming increasingly essential due to changing client needs or external risks?
Take a serious look at your agency’s market competitiveness. How did your agency’s offerings compare to your competitors’ offerings, in terms of features, pricing, and value? Were there standout policies that helped differentiate your agency in the market?
Determine the Least Useful Coverages of 2024
Next, pinpoint underperforming policies with low uptake or excessive claims costs and review which offerings had minimal inquiries. Then determine whether certain policies had high administrative burdens or unsustainable claims payouts.
Assess client needs by understanding which policies clients found most valuable and where needs weren’t met. Acknowledge the policies where customers frequently expressed dissatisfaction.
Consider if these policies can be improved or whether they should be phased out. Commit to aligning your offerings more closely with client needs to enhance loyalty and retention.
Make Plans to Adjust in 2025
Consolidating these insights can help you prioritize the coverages that drive your agency’s success. Then, it’s time to make a strategic plan to optimize your offerings in 2025.
Phase Out and Stay Competitive
First, determine which policies the agency should discontinue and which underperforming policies can be streamlined.
Adapt to market trends by introducing coverage options that address emerging risks, such as climate change, cybersecurity, and other developing risks, which require tailored products.
Stay competitive by offering policies aligned with market demands. Add features or incentives to high-performing policies to maintain their appeal. Launch new policies aligned with emerging risks or customer demands, such as renewable energy coverage or telemedicine insurance.
Streamline Operations
Streamline your operations by eliminating or simplifying offerings that are complex to manage or rarely sold. Analyze which policies had smooth claims processes and replicate those practices across your portfolio.
Optimize your marketing and sales efforts going into 2025. Concentrate marketing and sales efforts on high-demand, high-margin policies. Tailor marketing messages based on what resonated with the different customer segments you serve.
Ensure Compliance and Risk Management
An annual review helps ensure all policies meet regulatory requirements. Review local, state, and federal regulations to ensure all policies meet current standards. Provide ongoing training for staff on compliance requirements and changes in legislation. Maintain accurate and thorough records of policy details, claims, and client interactions to meet audit standards.
Assess high-exposure areas like products or markets that could pose a significant financial risk and adjust offerings to minimize exposure. Strengthen claims handling processes to manage risks from high-frequency or high-cost claims efficiently. Invest in robust cybersecurity measures to protect sensitive client data and agency operations.
Addressing these areas can help agencies reduce liability, enhance operational resilience, and maintain their reputation.
Plan for Growth 
Set strategic goals, using the insights gained from the end-of-year inventory to establish clear objectives for growth in 2025. Identify opportunities for new coverage types based on client feedback and market needs. Then develop a roadmap to scale operations and expand your client base. These adjustments can help your agency remain relevant in a competitive landscape.
Final Thoughts
Taking an inventory of your 2024 insurance coverage equips independent agents with the insights needed to make data-driven decisions. This process enhances service offerings, strengthens client relationships, and positions your agency for sustainable growth in an ever-changing and ever-competitive insurance landscape. With thoughtful analysis and strategic planning, your agency can confidently adapt to the challenges and opportunities of 2025.