Learning from One’s Mistakes: Turning a Lapsed Policy into a Training Opportunity

The Challenge: A Client Slipping Through the Cracks

In May 2025, Spivey Insurance faced an operational blind spot that often appears in busy agencies: the gap between claims and renewal management creating confusion for both the customer and the account management team.

Steve Phillips, the owner of West Auto Body, called to report a theft nine days before the policy was set to renew. The initial  conversation provided basic next steps but left coverage expectations and deductibles unclear. A few days later, during a renewal outreach call, Steve learned the policy had a significant rate increase, which the customer couldn’t afford, and was expiring in just over a week’s time. Steve hadn’t heard anything from his agent or carrier, and had assumed the policy would simply renew near expiring premium, which showed that the renewal had not been touched by the account management team or expectations clearly communicated.  The customer was now scrambling to find a new carrier.

A follow-up conversation revealed another claim earlier in the policy period of $7,200, which surprised both Steve and his business partner. The account manager could not provide details beyond a payout summary, leaving the client confused and frustrated. Each interaction reduced confidence and increased frustration about the renewal process.

Magellan’s analysis identified several systemic issues:

• Late Communication → No customer contact into less than 10 days prior to renewal 
• Lack of Coordination → Claim information was not researched or shared during renewal conversations.
• Inadequate Training → Agents showed lack of knowledge of the claims process when explaining deductibles, coverage response, and rate drivers
• Poor Sentiment Awareness → Sentiment grew negative as urgency grew near expiration.
• Timing and Ownership Gaps → Outreach occurred too close to expiration, which created panic rather than trust, followed by the pressure of same-day signatures and payments with a new carrier.

The outcome was a lapsed policy, a frustrated customer, and a lost opportunity to retain a loyal commercial account.

The Magellan Difference: Turning Insights Into Action

Although the policy was lost, the event helped the agency identify how to strengthen its process. Magellan’s system provided leadership with:

• Real-Time Sentiment Alerts showing tone deterioration during calls.
• Interaction Timeline Mapping connecting claim and renewal activity.
• Agent Performance Insights identifying where communication and ownership failed.

With this data, management developed targeted coaching programs that focused on:

• Communicating empathy and reassurance during claim  situations.
• Ensuring that claims history  is part of every annual renewal review.
• Identifying and explaining rate increases  with transparency.
• Improving communication between service and sales teams to maintain context.

These changes addressed the causes of the lapse and improved both client trust and team collaboration.

Impact and ROI

The missed renewal became a turning point for operational improvement.

Operational Insights → The agency identified three high-impact training areas through Magellan’s call analytics.

Retention Strategy → New process checkpoints now ensure clients with open claims receive renewal reviews at least 30 days before expiration.

Agent Development → Coaching increased confidence scores across sentiment metrics in later evaluations.

The Agency’s Perspective

When leadership reviewed the recordings, the breakdowns became clear. During the renewal follow-up, the agent stated,

“I can’t see any details to tell you exactly what happened and what was paid for.”

That single sentence revealed the issue. The conversation lacked context, ownership, and empathy. The client had to uncover information about a $7,200 claim while also facing a 30% rate increase only days before renewal.

Even as the client expressed stress about rising costs and business struggles, the tone of the conversation remained transactional. The focus shifted toward completing paperwork before the deadline instead of offering reassurance or guidance. The result reflected a larger issue within the agency’s culture of communication and follow-up. Magellan’s analysis helped identify that gap between what the client needed to hear and what the agent was prepared to deliver.

The Bottom Line

A missed renewal can become an opportunity for growth.

Magellan gave Spivey Insurance visibility into training needs, weak points in the customer experience, and accountability across the team.