Are you concerned about revenue growth in 2017?

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

Categories: Digital Marketing


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Are you concerned about revenue growth in 2017?