Boost Your Sales with Specialty Insurance

Brook McGuire, Strategy Lead for Specialty Products at Safeco Insurance

Don’t Miss the Boat (or the RV)! Boost Your Sales with Specialty

In garages across America sit classic cars, watercraft, motorcycles, campers, snowmobiles, golf carts, and other specialty vehicles. These “toys” represent more than hobbies — they’re passion projects for their owners.

Understanding the lifestyles and dreams these lines protect separates you from a crowded market of agents focused only on writing policies for auto, home, business, and life.

Safeco’s specialty products include personal umbrella, landlord protection, watercraft, motorcycle, classic car, recreational vehicles, golf carts, snowmobiles, and more. This range is a significant opportunity for you since many consumers need a specialty policy of some kind. 

Despite the opportunities, specialty products are often underpromoted. Yet they offer multiple ways to cross-sell to current policyholders while creating a steady flow of new prospects. Here are four tips for boosting your business.

1. Focus on a Dream Demographic

When you think about the most popular sedans in the U.S., guessing the likely demographics of this large group is nearly impossible.

But contrast that with a prospect who owns a cruiser-style motorcycle and you’ll get a much clearer picture. Per the 2009 MIC report, he or she is most likely married, owns a home, earns more than $75,000 per year, and has a bachelor’s degree. The 2011 RVIA report describes the average RV owner with similarly preferred demographics. These examples aren’t outliers. Generally, specialty policy demographics veer toward a preferred market, allowing you to target the kinds of customers you want.

2. Generate a Steady Source of Reliable Referrals

Specialty vehicle enthusiasts tend to congregate, whether for a Saturday morning cruise-in or long motorcycle rides through the mountains. As a result, they are more likely to chat about insurance with friends with similar assets to protect — which can increase your pool of potential referrals.

Focusing on specialty also lets you pinpoint your ideal customer while setting you apart. Any licensed producer can insure a standard sedan, but fewer understand the intricacies of protecting rental properties or classic cars. Focusing your acquisition efforts on specialty can lead to quality accounts that retain and outperform other customers.

3. Cross-sell insurance to improve retention and increase profits

Safeco’s recent Agent of the Future survey asked IAs about the trends and strategies they think will shape insurance through the year 2020. The survey revealed that IAs want to spend more time quoting new business and prospecting for new clients — and increasing cross-sales is the number one way they plan to grow. Become an expert in specialty programs and you’ll better recognize opportunities to cross-sell and improve your retention.

Our research shows that the national agent average is 1.6 policies-per-client. What’s yours? Increasing your average to 2+ policies can have a lasting impact on your book.

Cross-selling is especially important now as the public increasingly views an auto policy as a commodity. Focusing first on specialty increases your chances of capturing the entire account. Plus, building this side of your business can improve your bottom line by helping offset auto losses since specialty policies are typically profitable with more stable rates than auto or homeowners.

4. Generate professional referrals

Your current home and auto policyholders are good places to start for specialty leads but don’t stop there. To drive referrals and establish new leads, visit local specialty vehicle dealerships, attend boat, motorcycle, or classic car shows, or reach out to realtors selling rental homes.

Brook McGuire is the strategy lead for specialty products at Safeco Insurance. During her 17 years in the industry, she has worn many hats including selling insurance, coaching salespeople, underwriting, and re-underwriting. Brook is passionate about insurance, “when someone is injured or their home has burned down, we help pick up the pieces. Insurance professionals protect what matters most and I love that!”