New technology is being made available all the time and many are customized specifically for insurance agencies. Even if they are not customized for Insurance Agencies, these can help you run your agency more efficiently and save on staffing costs. For example, having an electronic signature system can help you secure policies faster as it makes it very easy for a client to sign vs. having them have to print, sign and fax back and often when there is more work involved, people put that on the backburner.
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AgencyEquity constantly make available resources to help your agency run smoothly, from operations to marketing. Technology is here, it’s no longer the future and agencies that make an investment in technology will put themselves ahead of the competition. Starting an Agency with a good technology infrastructure in place will create conditions for faster growth and often well worth the investment.
Specializations & Niches
Agencies that specialize tend to have an edge in specific markets. While most agencies do not specialize, I recommend giving specialization some thought, as it can bring in higher profit margins due to economies of scale. However, specialization also means that you will turn away accounts that are not among the types of business you target.
I like specialization from a marketing standpoint, as there are many opportunities to get involved in trade associations, target online searches, or advertise in trade industry publications. You can gain a solid reputation in the class of business you target, as industry insiders would rather deal with people who are familiar and understand their specific situation. It also facilitates referrals, as people in the same niche industry tend to know and network with each other. Using an agency name that reflects the niche the agency is targeting can be huge from a marketing perspective.
“AgencyEquity constantly make available resources to help your agency run smoothly, from operations to marketing. Technology is here, it’s no longer the future and agencies that make an investment in technology will put themselves ahead of the competition.”
Even if you don’t specialize, have you thought of narrowing your focus? Examples include high net worth clients, member of a local chamber of commerce or any group that shares specific characteristics. Just as with specializations, it will help in operations, marketing, and your bottom line. Lastly, remember that direct writers mostly do the same thing, providing auto, home and life insurance to middle-class clients. These services are a dime a dozen, so standing out and being a little different eliminates a lot of the competition.
Having a niche puts you several steps ahead of the competition and this is huge in a competitive insurance agency marketplace. You know the underwriting, you now the best carriers, you will know how to put together the most favorable terms and you will be several steps ahead when explaining coverages to prospects. The best prospects pick up on these and they know who knows what they are doing and who doesn’t.