Insurance is a business of opportunity, but when conditions like a hard market take hold, opportunities can seem limited. However, even in today’s hard market, opportunities await the enterprising and steadfast independent insurance agent.
Agents who are willing to seize opportunity in today’s market can find ways to grow their businesses. The industry is seeing exclusive agency channels contracting, and direct channels leveling off—while technological advancements are creating a more equal playing field across the insurance distribution system. Simultaneously, clients are recognizing the value an independent agent brings to the process in terms of expertise and coverage options. Due to this and other factors, the independent agency channel is experiencing growth in terms of premium and the number of agencies.
Still, independent agents are grappling with ongoing challenges impacting their businesses. Insurance company appetites are posing a challenge as carriers will not write policies in certain areas, limiting agents’ options. Consumer buying habits also are changing in both personal and commercial insurance, calling upon agents and their staff to have a deeper understanding of market conditions. And, staffing remains an obstacle as agents struggle to attract and retain talent.
While the challenges independent agents face do not have a one-size-fits-all solution, opportunity lies in diversification. To manage market shifts and hurdles, agents should look to diversify their product and service offerings and to expand into specialties.
Read the full article, featuring Steve Tombarelli, SIAA’s Senior Vice President, Programs and Services. Reprinted from PIA Magazine, November 2024, with permission from PIA Management Services Inc