HOW SPECIALIZATION CAN HELP INDEPENDENT AGENTS SURVIVE A HARD MARKET by Larry Chasin , PAK
There seems to be no break in sight from the hard market . In fact , data released earlier this year by the American Property Casualty Insurance Association ( APCIA ) shows that this may be the hardest market the insurance industry has faced in a generation .
As agents look ahead to 2024 and work through budget planning and new client outreach , considering new avenues of business may be crucial to surviving in today ’ s market . Agents can add new lines of revenue by diversifying their portfolios and considering new business sectors .
But how should independent insurance agents prepare to enter a new market ? Taking the time to find what specialty best fits their teams , finding the right business partners and studying the latest in industry trends are just a few steps to consider .
FIND YOUR NICHE
Finding the right niche to specialize in can be as simple as following your passions . Our business , PAK Programs , started because I had an interest in hospitality and fine dining . I pursued that interest and now we service wineries , breweries and similar businesses across the country .
Geography is also an important factor . For example , if you want to break into the winery niche as an insurance agent , it could be difficult if you live in Maine . The climate and soil are not known for producing fine wine . Do not let geography stop you from following your passion but consider the space you would work in and how abundant that business may be in your area . This will help determine the economic viability of expanding into new niches .
Once you have identified a specialty market that aligns with your interests and makes financial sense , you can consider how to break into a new market .
BECOME A LEADER IN A NEW MARKET
Becoming an expert is critical to bringing in new clients . There are certain risks and issues that only independent agents who take the time to study the niche and visit businesses will know how to address . This can set you apart from the competition .
For example , let ’ s look at wineries and wildfires . During a fire , we often see evacuations and road closures , which prevent customers and staff from getting to the business . This often leads to a business income loss . An agent without winery experience may assume they just need to look at the sales of wine the business would have received that day to calculate the loss .
However , an agent who knows the wine niche would consider more than just missed on-site sales . For many wineries , sales generated through wine club members is a major revenue stream . An agent who recognizes and understands the effect a prolonged closure would have on all the winery ’ s profit avenues will be in the strongest position to serve their client .
Taking the time to study and learn about your industry of choice is crucial . Some steps to consider include :
1 ) Attend trade events . Events present a great opportunity to study emerging industry trends and make connections with industry business leaders and vendors . 2 ) Study industry news sources . Read the major industry publications . These publications will be a key resource for staying up to date on news and trends , which means you can always speak with your clients from a position of expertise .
6 KANSAS INSURANCE AGENT & BROKER