潘金莲传媒映画

For a long time, the hard market has made it difficult for agents to offer their clients the coverage they want at affordable prices — assuming coverage was available at all. Now, there are signs that this is changing.

With market conditions looking up, insurance agencies should be looking forward to position their businesses for long-term success. The actions taken now will determine whether they’re in good shape for the soft market cycle that lies ahead.

When premiums are rising, frustrated policyholders tend to shop around for better deals. When solid coverage is hard to find, they often turn to insurance brokers to help them.

This means that even though hard markets are frustrating for insurance agents, they are also a source of opportunity. If you have carrier access, you can find new business among all those insurance shoppers.

When the market softens, policyholders have less incentive to shop around for coverage. More often than not, they’ll stay with the same insurance provider year after year. This makes it harder for insurance agents to drum up new business.

It’s like a game of musical chairs. During the hard market, the music’s playing and policyholders are circling in search of a good seat. When the hard market ends, the music stops, and policyholders sit down. You want to make sure they’re sitting with you.

What to Do Now

Policyholders are still frustrated with recent price hikes, and many are still shopping for better deals. Just look at the LexisNexis 潘金莲传媒映画 Demand Meter, which shows that U.S. consumer insurance shopping reached “nuclear” levels in the second quarter of 2024. Before the hard market ends, agencies can position themselves for a successful soft market by taking the following five steps.

1. Conduct intentional meetings that foster long-term relationships. When a new client comes to you, your first priority is meeting the coverage needs that brought them to you. However, it’s also important to gather information that will help you build a long-term relationship. In addition to asking about the insurance needs and concerns, ask probing questions to understand your clients’ current exposures, goals for the future, and to uncover coverage needs that they may not even be aware of.

2. Preempt price concerns. Price hikes are moderating, but some clients may still experience sticker shock due to the cumulative increases that have occurred in recent years. Take time to understand your clients’ budgets. If you recommend more expensive policies, explain why. Also consider offering more budget-friendly alternatives, such as usage-based auto insurance.

3. Differentiate your agency with actions rather than words. Rather than saying you are better than competitors, take steps to elevate the client experience, and let them draw their own conclusions. For example, while meeting your clients, offer to explain their policy terms and take the time to conduct a formal annual coverage review. Your professionalism will stand out, but to drive the point home, you can also ask if they’ve ever done this with other agents. If the answer is no, you’ll look better in comparison.

4. Become their one-stop shop by covering all lines. You can help your clients secure the protection they need while also closing more sales and reducing the risk of E&O claims by covering all lines. For example, if new homeowners come to you for homeowners insurance, you can also offer life and disability insurance. Likewise, if a small business owner comes to you for commercial property and general liability insurance, you can discuss things like cyber insurance and employment practices liability insurance.

5. Provide value as a risk consultant. New clients may come for affordable prices, but you need to deliver more than just a great rate if you want them to stick around. Think about it — if all you offer is a low price, why would they stay with you if they found an even lower price somewhere else? To foster loyalty, you need to be more than a quote machine. You also need to be a risk consultant, and your services need to continue long after you’ve made the sale and earned your commission. Check in with clients, see if their needs have changed and provide risk management tips to help them avoid claims.

Don’t wait until the hard market officially ends! By taking these five steps now, you can strengthen your agency’s position as a partner for the long haul — an insurance advocate that clients trust in good times and bad.

Topics Pricing Trends Market