Search CompleteMarkets

... But some agencies are reducing or eliminating competition by entering niche markets. Companies often pay higher commissions for niche-market programs, and because there are few competitors-and in some cases, none at all-there are few wasted sales calls. Niches are windows of opportunity. They often begin with a request for special coverages from a single customer. If the agent seizes the opportunity, that one request can blossom into a fertile market. In fact, the opportunities are so numerous and the rewards so great that some agencies have dropped their standard property/casualty lines entirely and replaced them with a smorgasbord of niche programs. Niche marketing is also a way to maintain aggressive markets since many carriers such as Chubb, AIG, and most recently, St. Paul are putting their emphasis on profitable target markets. Of course ... Co. of Dallas. Normally, an agency is happy with $75,000 to $80,000 a year in revenue per employee. We do 50 percent per employee higher than a general agency. In fact, target marketed' programs, as he calls them, are so profitable the Everhart has abandoned more conventional lines of business. Two of his four niche programs-notary public bonds and used-car dealer bonds-are marketed solely within Texas . The others-personal watercraft (jet ski) insurance and hole-in-one coverage-are marketed outside the state as well. When Everhart started his agency on April's Fool's Day 1970, he handled standard fire and casualty lines and specialized in the trucking industry. But he quickly found that he was spending most of his time convincing carriers to underwrite programs instead of selling products to potential customers. ...