February 13th, 2019
Yes, you are an “insurance agent” but the term can have different meanings. Are you an agent that writes general lines, specialty lines, niche markets, or all of the above? A great way to expand your insurance agency’s business is to explore niche insurance product lines.
Of course being an insurance agent offering niche insurance products is not for everyone. How exactly can expanding into niche markets make sense for your agency financially? Let’s take a look.
What exactly is a niche market anyway? Think of niche insurance as a “specialty” insurance product that covers the specific insurance needs of certain groups. It could really be almost anything if you think about it; insurance for weddings, life insurance for diabetics, insurance for government employees, cyber liability; or writing business for a particular industry such as contractors, healthcare workers, temporary staffing companies, etc.
The key to expanding into niche markets is finding an underserved market and learning how to go after profitable premium dollars. Then, once you’ve written the business, learn how to effectively manage the exposure, keeping safety as a focus to manage risk control and claims. The fewer agents serving a needed market, the greater your potential profit will be.
The modern insurance customer is looking for a specialist to write his insurance. He wants an agent with expertise and knowledge who can help protect his interests. Think of the medical field—aren’t the most highly paid doctors those are specialists in a particular field of medicine? Of course there will always be a need for the general insurance agent, especially in your small-town America settings, but as times change, keep niche insurance markets in your realm of possibilities as a way to grow your agency.
We hope you’ll consider this information about niche insurance markets as food for thought. Check back with us often for more insurance news and insights. We are always on the lookout for ways to help your agency grow!