There seem to be infinite possibilities for insurance brokers to grow these days. Here are a few tried-and-true strategies that brokers can take full advantage of in 2020 to stay relevant and elevate themselves to strategic advisers.
Expand your product and services portfolio
Brokers need to challenge the idea of being specialists, especially because monoline insurance selling is not as prominent as it once was. It will pay off to operate as a generalist with a vast knowledge of multiple available coverages and services rather than focusing on a singular, niche area. Indeed, expanding their portfolio can help brokers manage clients’ entire risk profile, reach new segments of potential clients and elevate them from simply a vendor to a strategic adviser. For example, a broker with clients in healthcare, an industry with acute cyber concerns, might expand his or her portfolio to offer cyber insurance.
Get out of the Stone Age
In today’s digital world, clients are accustomed to having service at the touch of a button, and brokers must adapt. Implementing technology that boosts efficiency, enables customers to manage their own products and expedites all processes has become a must as clients no longer have patience to work with businesses unwilling to make such changes, regardless of coverage options.
Evaluating where strategic investments can be made specific to their business, such as adopting a new agency management system, using data and analytics, white labeling or partnering on risk engineering services, can also fuel growth. For example, using a system like CoverWallet to rate, quote and bind smaller accounts, frees up agents’ time to focus on larger accounts with more revenue potential. Or agents can tap digital partners like IVANS to identify emerging markets faster, which leads to quicker growth.
Be comfortable with a “blank piece of paper” mindset
Every successful broker has a growth mindset. Although it can be uncomfortable, a great way to grow can start from a “blank piece of paper” mindset. That is, moving away from the “business as usual” mentality and just saying “yes” can lead to unimaginable possibilities and new ideas regarding the evolving service, technology and customer experiences. For example, insurtech companies are super comfortable with a blank piece of paper – it allows them to think, design, build and test new ideas in a fast environment.
Straying away from the idea of perfectionism can lead to meeting new people, creating long-term goals and working on projects you hadn’t considered before. Being willing to start from scratch and think outside the box allows brokers to learn about the field in new ways. The ability to adapt to overcome challenges and a willingness to embrace the unknown are essential skills for successful brokers. A way to work on honing this skill is by looking for new strategies to adopt that allow you to stay up to date on current trends in the field, and maintaining an optimistic mindset. Long-term strategies can come from not being afraid to start at the end of something and working backward toward your goal instead of trying to fix what might be broken.
Have a referral strategy
Putting a referral strategy in place can help brokers capitalize on growth opportunities. Failing to take this step is essentially leaving money on the table. It’s important to set goals before crafting and implementing a strategy. From there, brokers can make it a habit to think about who they can tap for a referral two or three times a week, and then bring the referral to life. These efforts will add up over time with persistence, gratitude and creativity.
Referrals are a major business builder and money maker for brokers. When trusted clients, friends, family and colleagues recommend a broker’s services to others it can quickly translate into a new customer. However, brokers can’t rely solely on word-of-mouth referrals. To break free of the referral rut, brokers should leverage both social networking and traditional, in-person networking to organically grow their business, strengthen relationships and reach new audiences.
See also: What a Safer World Means for Brokers
Invest in strategic partnerships
Strategic partnerships can allow brokers to push their capabilities to the next level and expand into new areas of insurance. There are three main potential partnerships for brokers to explore: agent aggregators, merger or acquisitions and gaining access to an online marketplace. Agent aggregators offer immediate expansion and resources. Mergers or acquisition can prove successful when two firms specialize in the same niche area or have symbiotic offerings. Lastly, gaining access to an online marketplace is an increasingly common option with the evolution of insurtech.