Between new technology and the ever-changing market, generalist insurance agencies face myriad challenges that specialist insurance agencies might not. However, by analyzing these challenges and learning from specialist insurance agencies, generalists can overcome them and find greater levels of success. Read on to learn three of the biggest challenges generalist insurance agencies are facing today and how to overcome them.
1. Dealing with market changes
It’s no surprise technological advances are changing the way homeowners purchase insurance. Rather than speaking with an agent, homeowners can now use a direct provider distributor to plug in their information to generate a policy that is immediately ready for purchase. While generalist insurance agents may worry their position will become obsolete, fear not. Every industry will face change at some point — it’s ultimately about knowing how to reinvent your business model to keep attracting new clients.
2. Not targeting a specific market
One of the biggest challenges generalist insurance agents face is selling policies that are too broad. As a result, it can become increasingly difficult to hit a target market and close enough deals to stay afloat. For this reason, many generalists make the switch to specialists, or at least offer more specialized policies. This isn’t to say you need to make a complete switch from generalist to specialist, but through target marketing, you can reinvigorate your career. By aiming your marketing efforts at specific demographics, you can focus on selling a particular type of coverage without having to make the complete switch from generalist to specialist.
3. Working with less complex accounts
Generalist insurance agents tend to gravitate toward less complex accounts because these typically don’t require specific expertise. As the insurance industry changes, generalists may have to consider: “Who is more likely to change from a traditional agent model to an Internet-based, or other alternative model?” While the future is unclear, it is worthwhile to consider that generalists may be less sought after than specialists who are willing to take on more complex accounts.
Learn More About ASI
ASI is one of the largest homeowners insurance carriers in the United States. Through a network of independent agents, the company offers home, condo, renters, dwelling fire and flood insurance in over half the country, with plans to cover the rest by 2017. Find out more at AmericanStrategic.com.