The once 'premium power-house' of the brokerage has dwindled over the years for various reasons, such as:
If people are no longer purchasing personal lines from your brokerage or not paying their premiums, what’s your end game? That is, what’s your plan to replace this vanishing source of revenue?
For many brokerages, the solution lies in growing their commercial book. We’ve identified five key trends shaping the commercial lines market you need to explore.
Customers and prospects have little tolerance for extended wait times, paper-based processes and lack of digital presence among brokers. Many businesses are fully mobile and social media savvy and they expect the same from you.
Not only do you have to battle online insurers and direct writers, you also need to compete with forward-thinking brokerages that have already made the switch. The longer you wait, the more difficult and expensive it will become.
One key segment is small to medium-sized commercial accounts that meet specific underwriting criteria that can be processed quickly, like restaurants or retail. For these accounts, brokers require a more efficient business model that capitalizes on available automation tools.
Big data and being digital is all the rage, but what does that exactly mean for you? In an article published by McKinsey & Company, digital should be seen less as a thing and more a way of doing things. They’ve broken it down into three attributes:
Insurers are spending large amounts of money to better understand the products they are offering and the needs of consumers. Brokers need to adopt many of the same strategies to stay relevant.
Telling customers and prospects, “buy it because it’s the best deal in town,” is no longer enough. In correlation with item #1 above, businesses are becoming more savvy when it comes to risk management and the advice they expect from their broker.
For many brokers that means acquiring knowledgeable commercial producers, account executives and risk consultants that understand business sectors, develop lasting relationships and proactively solve problems for clients. That is the cornerstone for future growth, not price.
These insights create incredible opportunity for brokerages, but if your brokerage stays focused on personal lines, the transition may be overwhelming. That is why I recommend reading our Free eBook: 5 Trends Shaping Broker Strategies in Commercial Insurance. In it, we discuss how and why the personal lines market share is fading and share the opinions of leading experts on the best ways to grow your commercial book.