Are you ready to grow your independent agency? The market conditions are ripe for success in insurance sales. To take advantage, you need to implement the right strategies.
The Independent Agency Channel Is Growing
Independent agencies are thriving right now. According to the Big “I” 2024 Market Share Report, the independent agency channel places 62.2% of all property and casualty insurance written in the U.S. Plus, it’s gaining market share in personal lines and holding steady in commercial lines.
People are turning to independent agents for help securing coverage, which is good news for individual agents who want to grow their businesses. However, there’s also a lot of competition. According to IBISWorld, there are 417,730 insurance agencies in the U.S., as of 2023. That’s an increase of 0.2% from 2022. It’s also 417,729 other agencies competing against you for business.
However, there’s plenty of opportunity right now. The following eight strategies will help you grow your business.
1. Lean into Your Strengths.
Are you good at networking with people in person? Or do you excel at social media? Whatever your strengths, find a way to leverage them to grow your business. Of course, before you can do this, you have to identify your strengths. This is no time to be modest. Make a list of two or three things you do exceptionally well.
2. Challenge Yourself.
Although leaning into your strengths is smart, sometimes you need to work on your weaknesses, get out of your comfort zone, and try new things. For example, if you’ve never used social media for your business and feel shy about posting online, this would be a good area for you to improve.
3. Never Become Complacent.
Even if you’re happy with the current size of your business, it’s important to work on growth. Finding new clients takes time, as you often need to make multiple contacts before you land a client. If you’re constantly looking for ways to grow, you’ll be fine if you suddenly lose some clients or face another setback because your business will be thriving and you’ll have more leads in the sales pipeline.
4. Nurture Your Existing Relationships.
Finding new leads is great, but don’t neglect your current clients and professional contacts.
Finding new clients takes a lot more effort than retaining current clients. If you’re losing clients at a high rate, achieving growth won’t be impossible, but it will be challenging. Consider a car insurance client who just bought a home. If you sell this client homeowners insurance, you make a new sale. If someone else provides this client with homeowners insurance, you miss out on a sale and also risk losing the car insurance placement to the other agent. By staying in contact with current clients and seeing if they have any new leads, you’ll boost retention while making more sales.
Maintaining professional relationships is also important. By networking with real estate agents, accountants, and other professionals, you’ll secure referral business. To keep the referrals coming, it’s important to stay in contact and keep these connections strong.
5. Embrace Technology.
Technology can make your job easier, which can help you grow your business. For example, with a CRM system, it’s easier to follow up with clients and prospects, which should help you meet your retention and growth goals. By freeing up time, technology also allows you to focus on activities that support growth.
6. Establish a Specialty.
It’s hard to stand out in a crowded market. By establishing a specialty, you’ll differentiate yourself from your competitors.
A specialty may be anything from a specific line of coverage to a certain group of clients. Many agents naturally find themselves gravitating toward specific niches. Leaning into this may be a good way to grow your business. Think about the types of clients and products you already serve. Brainstorm ways to increase your business in those areas.
7. Find Ways to Expand.
Having a specialty doesn’t mean you can’t expand into other areas. At some point, you may find that there isn’t much room for you to grow with what you currently offer. To find more business, you need a larger pool of prospects, which requires expansion.
In some cases, expansion may mean taking on new lines of business – for example, adding commercial lines or life and health if you currently offer homeowners and auto insurance. It may also involve expanding into a new region or targeting a new demographic.
8. Find a Partner That Helps You Grow
Heffernan Network helps independent agencies achieve growth. We offer carrier access, leadership development, innovative technology solutions, and back office support to help you grow your business. Learn more.
