ACCOUNT MANAGER

Account Manager – Servicing and Retaining Clients

In plain language: An account manager in insurance serves as the main point of contact for clients, ensuring they have the right coverage, promptly handling their concerns, and maintaining the business relationship. 

Technical definition: In an insurance setting, an account manager is a highly skilled professional responsible for managing client relationships, processing endorsements, verifying policy accuracy, liaising with underwriters, and promoting client retention. Their role is vital in sales and account management, often found within commercial lines departments but can also be a key role in personal lines. 

An account manager in insurance is a balancing act. They must keep client satisfaction high, minimize E&O risks, and contribute to agency profitability all at the same time. 

TL;DR

An account manager is the go-to person for all client needs 

They play a pivotal role in client retention and risk management within the agency 

A common pitfall is overlooking the growth and learning potential this role offers 

Best practice: invest in account manager education and advanced training 

What Is an Account Manager in Insurance?

In the insurance world, the role of an account manager revolves around maintaining positive client relationships, managing key accounts, and ensuring client policies are accurate and satisfactory. They handle everything from policy changes and claims help to advising clients on risk and coverage. This position typically requires some industry experience and a deep understanding of insurance products, terms, and processes. 

An account manager might interact with all sorts of policy forms as they manage their portfolio of clients. Depending on the agency size and structure, they may oversee both commercial and personal lines policies, though in larger agencies, roles are often more specialized. They are commonly seen as the "face" of the agency to the client, fostering strong client relationships that promote retention and loyalty. 

Key Related Terms to Know

Key Account Manager – a specialized role focusing on managing and growing the agency's most important clients or accounts. 

Customer Service Representative – an agency team member who often assists account managers, helping answer client’s queries. 

Policy Endorsement – official amendments to an insurance policy, often processed by account managers. 

Underwriter – insurance professionals who evaluate risks and set policy terms; account managers often liaise with them. 

Common Questions About Account Managers

What Does an Account Manager Do? 

An account manager serves as the vital link between the insurance agency and its clients. They're responsible for servicing existing clients, processing policy changes, advising on risk and insurance solutions, and overall customer satisfaction. For example, they'd be the one a commercial client calls when they purchase a new property and need to add it to their policy. 

How To Become an Account Manager? 

Becoming an account manager usually requires some experience in an insurance setting, often as a customer service representative, plus continuous account manager education. They'll need a deep understanding of insurance policies, regulations, and customer service practices. They also typically need a license to sell or service insurance in their state. 

What Is The Role Of An Account Manager? 

Account managers play a vital role in managing and maintaining key accounts in an insurance agency. They build and enhance client relationships, ensure customer satisfaction, and contribute to the agency's profitability. A key part of their job is keeping the balance between maintaining existing business and identifying upsell or cross-sell opportunities. 

What's The Account Manager Career Path? 

An account manager career can be quite rewarding and offer numerous opportunities for professional development. After gaining experience and demonstrating their account management expertise, they may move into senior or key account manager roles, handling larger or more complex clients. Positions in leadership or training are also potential next steps. 

Account Manager vs. Key Account Manager

In insurance, the distinction between an account manager and a key account manager lies primarily in the nature of the accounts they handle.  

Real Claim Examples Involving Account Managers

Scenario 1: A retail shop owner called their account manager about adding liability coverage for a new location, but the addition was mishandled. When a liability claim arose, the client was shocked to learn they were uninsured, leading to a costly E&O incident for the agency. 

Scenario 2: A contracting client noted a potential clerical mistake regarding an excluded driver on their commercial auto policy. The account manager quickly corrected the error, preventing a potential coverage gap and showing the value of attentive service. 

Scenario 3: A manufacturing client contacted their account manager for guidance after a large property loss. Thanks to their account manager's prompt support and insurance knowledge, the claim process went smoothly — leading to high customer satisfaction and policy renewal.

Limitations and Common Mistakes

Overlooking the potential for growth in their account management career path 

Failure to conduct regular policy reviews can lead to coverage gaps and E&O claims 

Misunderstanding a client's business or personal risks can result in inappropriate coverage recommendations 

How to Explain Account Managers to Clients

Personal Lines client "Think of us as your insurance guide. We help update and manage your policies and answer any questions you may have about your insurance." 

Small Business owner "As Account Managers, we're your go-to. We'll help manage your insurance, ensuring the coverage aligns with your business needs, and assist with any changes or claims."

CFO or Risk Manager "We act as your partner in managing risk, thoroughly understanding your business needs and ensuring your coverage is appropriate and cost-effective."