While many people are flocking to beaches and tropical destinations, the summer season presents a prime opportunity for independent agents to delve into new business prospects. It's a known fact that independent agents typically interact with customers only during policy renewals or claims. However, identifying opportunities to provide information and ideas that can save on premiums midway through a policy can not only strengthen relationships but also generate more business in the long run.
Unlocking Growth Opportunities for Independent Agents
This summer, independent agents seeking expansion can explore several areas for growth using proven strategies:
- Current Coverages: The COVID-19 pandemic forced businesses to reinvent themselves. Restaurants shifted to takeout and outdoor dining, while offices transformed into virtual workspaces. However, many of these businesses made changes without ensuring they were adequately covered for the new risks they encountered. For instance, do employee-turned-delivery-drivers have proper auto coverage? Does the business owner's policy include coverage for special events or off-site food liability? Engaging policyholders in conversations about their insurance needs and identifying areas where coverage can be adjusted can be an excellent customer touch point.
- Business Interruption: During the pandemic, many business owners discovered that their business interruption coverage only applied in cases of physical damage, or they were unaware of policy exclusions for "communicable diseases." Now that shutdowns are no longer a concern and business interruption insurance lawsuits are progressing through the courts, it's crucial to discuss what is and isn't covered. Additionally, exploring other coverages that could benefit business owners can help avoid future disputes and ensure clarity before the next crisis arises.
- Cyber and the Metaverse: The world is rapidly moving into the metaverse, a simulated digital environment that mimics the real world using augmented reality, virtual reality, and blockchain technologies. This transition presents new risks and, consequently, opportunities for insurance coverage. Although tailored policies for the metaverse are not yet available, many standard lines of insurance cover the inherent risks. Discussing best practices and available coverages related to customer data breaches, payment card data liability, and other risks can initiate valuable conversations with policyholders.
- Cannabis: The cannabis industry is expanding, with more states legalizing medical and recreational cannabis. However, many cannabis businesses struggle to find adequate insurance coverage. As the market matures, the risks become clearer, and underwriting processes improve. While certain high-profile incidents like dispensary thefts capture attention, many risks faced by cannabis businesses align with those of any other industry, such as fires and sewage backups. Specializing in the cannabis field can offer independent agents an opportunity to tap into this growing market.
- InsurTech: Automation is revolutionizing the insurance industry. The pandemic highlighted the potential for automated underwriting, even in traditionally face-to-face processes like life insurance. Advancements in satellite imaging and geospatial services are enabling automated underwriting in property-casualty lines. Telematics devices in vehicles provide valuable data for auto insurers, while home telematics devices can prevent potential claims by monitoring factors like fire alarms and leaks. Educating policyholders about these technologies can be a fruitful avenue for reducing costs and improving risk prevention.
Join AAI
While others may be enjoying beach vacations, independent agents can take advantage of the summer season to engage clients in discussions about protecting their businesses and saving money. By employing these proven growth strategies, agents can strengthen customer relationships and capitalize on new opportunities for expansion. Join AAI today to start your independent agency while getting one-on-one training and support from experts. If this post has piqued your interest, contact us today.