When a client’s primary point of contact changes, many agencies fall into a reactive pattern. As long as service continues, they assume the client will not mind the change.
In practice, agencies often delay the announcement, send a quick email or wait until a client calls in and realizes their agent is gone.
But for a client, an agent change is not a mundane detail. It is a shift in the relationship they depend on. The most successful agencies do not avoid this moment. Instead, they address it proactively and directly.
The impact on retention and profitability
Over the last 13 years at ClientCircle, we've reviewed millions of survey responses from insurance clients across agencies nationwide. The pattern is consistent: Nearly half of all negative client feedback is tied to poor or missing communication.
One of the most common—and costly—examples occurs when a client’s primary agent changes without a clear explanation. This gap has a direct, measurable impact on an agency’s retention and long-term profitability. When clients feel overlooked or unimportant, they stop looking for reasons to stay and start looking for reasons to shop.
The reality is that clients are rarely frustrated that an agent leaves; they are frustrated by how they find out. If communication is delayed or unclear, clients inevitably discover the change the hard way—usually when they call with a question and find themselves talking to someone unfamiliar.
In these moments, clients commonly describe:
- Not being told their agent left.
- Feeling unsure who is responsible for their account.
- Questioning whether anyone truly knows their situation.
The good news is that this isn't a difficult problem to get ahead of. By being proactive, you can turn a potential retention threat into a demonstration of value.
Send a letter in the mail
Agencies that grow profitably don’t treat a change in a client’s primary point of contact as an administrative chore. They see it as an important moment to reinforce their reputation and ensure the client feels looked after.
Clients expect communication that reflects the importance of the relationship. A quick email is too easily ignored or buried in a crowded inbox. Instead, profitable agencies rely on physical letters to signal intentional effort.
When clients receive a letter in the mail from their agency, they see it as a deliberate investment in the relationship. This approach also ensures the message is actually seen.
This visible investment pays for itself in two ways. It reassures the client so they are much less likely to shop, and it protects your staff from the hours of reactive service work and avoidable questions that inevitably follow poor communication.
Why letters make sense financially
A printed letter typically costs a few dollars in materials and postage.
A retained personal lines household is often worth around $500 per year in commission, and commercial accounts are worth even more.
When proactive communication prevents even one client from shopping, it more than offsets the cost of hundreds of letters. Beyond retention, it also saves staff time by preventing confusion driven calls and follow ups.
This is a small investment with an outsized return.
What insurance clients want to know
Clients are not looking for internal explanations. They want clear reassurance that their relationship with the agency is intact.
A strong message answers four simple questions:
- What is changing, at a high level
- Who is responsible for my account now
- Do they understand my situation and coverage
- How can I reach someone if I need help
When those questions are answered proactively, clients feel confident that their account is being handled and are far less likely to worry or shop around.
Transition letter templates for agencies
When a primary point of contact changes, the goal is always to clearly establish who is responsible for the relationship and reassure the client that nothing is being overlooked.
Agencies typically handle this communication in one of two ways. The right option depends on the circumstances of the agent’s departure, such as retirement, reassignment or leaving the agency altogether. Both approaches are effective when the message is clear, professional and timely.
Option 1: Agency-sent transition letter
This approach works well in most situations. It clearly establishes continuity, reinforces agency ownership of the relationship and removes ambiguity for the client. Many agencies use this as their default whenever a primary point of contact changes.
I wanted to personally reach out to share an update regarding your team here at [Agency Name].
[Agent Name] is no longer with our agency. We appreciate the time they spent with us, and our priority is ensuring your service continues without interruption.
Moving forward, your account will be handled by [New Agent Name]. They are an experienced member of our team and are familiar with your policies and coverage.
What this means for you:
- Your policies and premiums remain the same
- Our commitment to looking out for you remains unchanged
- You continue to have a dedicated group of professionals here whenever you need help
If you have any questions or would like to connect, [New Agent Name] can be reached at [Phone] or [Email].
We appreciate the trust you place in our agency and look forward to continuing to protect what matters most to you.
Sincerely,
[Principal Name]