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CompleteMarkets expert insights on how to acquire new agents and brokers.

Are you concerned about revenue growth in 2017?

Erin Carlson Erin Carlson , 11/17/2016
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We have some exciting news to share with you and your team.

The CompleteMarkets network is in a unique position to discuss the many challenges our industry is facing because we talk to dozens of our advertisers (MGAs/Wholesale brokers), retail agency owners and individual agents on a daily basis.

Get in touch to discuss a solution to your companies unique challenges - https://completemarkets.com/pages/advertisercontact.aspx

As you know, the insurance industry is facing some of the toughest challenges it has in recent years. Historically low federal interest rates have had a wide reaching impact on the insurance industry. Here are 3 key market driven challenges that we are facing –
  • The industry is on an extended Mergers & Acquisitions cycle – this affects everyone in the industry – from retail agent to MGA to Carrier.
  • Coupled with the extended market softening, we hear constantly that carriers are reducing premiums.
  • The insurance consumer is demanding better service and value at more competitive rates.
But, shareholders and corporate think tanks need to find ways to grow their companies, and there are 3 main growth strategies
  • Organically – all forms of marketing (email, search, social and event marketing), new programs, appoint new agents and grow more premium.
  • Through acquisition – find a smaller or similar company that aligns well with the core business and acquire or merge. This approach requires capital – human and cash capital; is the highest risk, highest reward option of the three. Poorly structured mergers can be very expensive and time-consuming. Post-merger, there could be all kinds of problems – morale issues, customer attrition, systems integration issues and resultant legal battles.
  • Open up new channels of distribution. For example, go direct to consumer (in addition to retail agent channels). This approach can be a double-edged sword. For smaller, simpler risk related products, the direct-to-consumer model may work. But, for hard-to-place, more complex products this becomes very challenging indeed. The very nature of the complexity of the product determines the distribution channel.

    In other words, there is a reason that specialty risks lend themselves better to the Carrier->Wholesaler->Retail Agent->Buyer (consumer) distribution model. Over the years we have observed many specialty commercial/benefits MGAs and Wholesale Brokers unsuccessfully attempt to grow with a multi-channel distribution model. The channel conflict causes plenty of problems –
    • The retail agent community takes their business elsewhere
    • The organization that has never dealt with the consumer before finds itself in a wholly different, unfamiliar and uncomfortable territory.
There are exceptions and some organizations have invested in aligning their resources to attempt new strategies, and have a higher success rate. We have helped some of these companies – with
  • Targeted & non-targeted marketing.
  • New agent acquisition and more premium acquisition from existing agents.
  • Successful launching of new markets/products
  • Education and press releases (especially with product knowledge and M&A activity)
  • Expand the footprint (admitted and non-admitted)
Get in touch. We will craft a solution that fits the unique needs of your organization. https://completemarkets.com/pages/advertisercontact.aspx