Renewal Automation ROI Calculator

For insurance carriers processing renewals manually with slow cycles and declining renewal rates

Calculate savings and revenue impact from automated policy renewals. Understand how automation can deliver substantial processing cost reductions, improved renewal rates through better customer experience, staff time freed for growth activities, and strong ROI from renewal automation platforms.

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Automation ROI

Net Annual Value

$1,363,500

Processing Savings

$283,500

Additional Renewal Revenue

$1,224,000

Manual renewal processing for 18,000 policies at 25 minutes each requires 7,500 staff hours costing $315,000 annually at $42/hour. Automation platform at $12,000/month reduces processing 90% to 3 minutes, saving $283,500 in labor while freeing 3 FTE. Additionally, improved renewal experience increases renewal rate from 82% to 86%, retaining 720 more policies worth $1,224,000 for $1,363,500 net annual value and 947% ROI.

Manual vs Automated Renewals

Automate Policy Renewals

Insurance carriers implementing renewal automation typically reduce processing time by 80-95% while improving renewal rates by 3-6 percentage points. Organizations often achieve faster processing, better customer experiences, freed staff capacity for complex cases, and reduced renewal friction

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Manual renewal processing for 18,000 policies requires 7,500 staff hours at $315,000 annually, while achieving 82% renewal rate. Automation investment of $144,000 reduces processing time 90% to save $283,500 while improving renewal rate to 86% through better customer experience, retaining 720 additional policies worth $1,224,000.

Beyond immediate savings, renewal automation enables personalized renewal offers, dynamic pricing adjustments, proactive coverage recommendations, and seamless digital experiences. Organizations benefit from freed staff capacity to focus on complex cases and customer relationships rather than administrative processing. The 3 FTE freed annually can be redeployed to higher-value activities like retention outreach, cross-sell opportunities, or complex underwriting cases, demonstrating compounding organizational benefits beyond the 947% direct ROI.


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Tips for Accurate Results

  • Track full renewal processing cost including staff time, system costs, and communication
  • Include renewal rate impact - seamless renewal experience drives retention
  • Account for growth capacity unlocked - freed staff can focus on new business
  • Factor in customer satisfaction improvement - renewal friction drives churn

How to Use the Renewal Automation ROI Calculator

  1. 1Enter annual policies renewing and average staff time per renewal
  2. 2Input current renewal processing cost and staff hourly rate
  3. 3Set current renewal rate percentage and expected improvement from automation
  4. 4Enter automation platform costs and implementation timeline
  5. 5Input staff capacity freed and redeployment to growth activities
  6. 6Review total annual savings from efficiency gains and improved retention

Why Renewal Automation Matters

Manual renewal processing can cost carriers substantial amounts per policy through staff time on data gathering, pricing calculations, underwriting review, document generation, communication, and payment processing. Extended renewal cycles create customer friction and shopping opportunities for competitors. For carriers with large annual renewal volumes, manual processing costs can reach millions annually while slow turnaround enables a meaningful portion of customers to defect to competitors quoting faster.

Automated renewal platforms can significantly reduce processing costs per policy through automated data gathering, rules-based pricing and underwriting, digital document delivery, and self-service payment. Renewal cycles can be dramatically shortened with instant digital renewal options. Organizations with large annual renewal volumes can save millions annually while renewal rates improve meaningfully from superior experience. The freed capacity enables staff to focus on complex risks, customer expansion, and new business development.

Strategic benefits compound over time: data-driven renewal pricing optimization, predictive models identifying at-risk renewals for intervention, personalized cross-sell opportunities during renewal, reduced manual errors improving customer satisfaction, and scalability to handle growth without proportional staff increases. Renewal automation transforms from back-office efficiency to retention and growth engine.


Common Use Cases & Scenarios

Small Regional Carrier (60K Annual Renewals)

Regional insurer with manual renewal processes

Example Inputs:
  • Annual Renewals:60000
  • Manual Cost Per Renewal:$25
  • Current Renewal Rate:86%
  • Staff Hours Per Renewal:0.75 hours
  • Automated Cost Per Renewal:$6
  • Expected Renewal Rate:90%

Mid-Size Carrier (250K Annual Renewals)

Mid-market carrier implementing renewal automation

Example Inputs:
  • Annual Renewals:250000
  • Manual Cost Per Renewal:$28
  • Current Renewal Rate:87%
  • Staff Hours Per Renewal:0.8 hours
  • Automated Cost Per Renewal:$7
  • Expected Renewal Rate:91%

Large National Carrier (1.2M Annual Renewals)

National carrier modernizing renewal operations

Example Inputs:
  • Annual Renewals:1200000
  • Manual Cost Per Renewal:$30
  • Current Renewal Rate:88%
  • Staff Hours Per Renewal:0.85 hours
  • Automated Cost Per Renewal:$7.50
  • Expected Renewal Rate:92%

Commercial Lines Carrier (180K Annual Renewals)

Commercial insurer automating small business renewals

Example Inputs:
  • Annual Renewals:180000
  • Manual Cost Per Renewal:$32
  • Current Renewal Rate:85%
  • Staff Hours Per Renewal:0.9 hours
  • Automated Cost Per Renewal:$8
  • Expected Renewal Rate:89%

Frequently Asked Questions

What percentage of renewals can be fully automated?

A significant majority of personal lines renewals and a substantial portion of small commercial renewals qualify for straight-through processing based on clean loss history, stable risk profile, and system data availability. Complex risks still require underwriter review but benefit from automated data preparation.

Will automation reduce renewal customer touchpoints?

Automation enables strategic touchpoints rather than tactical processing contacts. Freed staff capacity allows relationship-building calls to high-value customers, proactive cross-sell conversations, and intervention with at-risk renewals. Touch quality improves while processing touches decrease.

How does automation improve renewal rates?

Faster renewal cycles reduce shopping windows, digital self-service options eliminate friction, consistent timing builds expectations, automated reminders prevent lapses, and personalized renewal offers increase perceived value. The combination can meaningfully lift renewal rates.

What about customers preferring human interaction?

Automated systems provide omnichannel options - digital renewal for those wanting speed and convenience, agent-assisted for those preferring consultation. Automation frees agents to spend quality time with customers wanting interaction rather than processing paperwork.

How long does renewal automation implementation take?

Basic automation can launch relatively quickly including system integration, workflow configuration, communication template setup, and staff training. Advanced capabilities like predictive retention modeling and dynamic pricing take longer to implement. Organizations can see savings as renewals shift to automation.

What metrics should we track?

Track renewal processing cost per policy, renewal cycle time, straight-through processing rate, renewal rate by channel and segment, staff productivity (renewals per FTE), customer satisfaction scores, and cross-sell attachment rate. These KPIs demonstrate operational and revenue impact.


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Renewal Automation ROI Calculator | Free Insurance Calculator | Bloomitize