In today’s fast-paced insurance market, independent agents face a mix of challenges and exciting opportunities. While personal lines insurance remains a cornerstone of many agencies, expanding into commercial lines can unlock significant growth opportunities and drive higher revenue.
This article presents compelling reasons for independent agents to diversify their offerings by including commercial lines. It emphasizes the vast market potential, showcases the benefits of cross-selling, and demonstrates the ease of getting started with the right support.
The Scope for Intersection Is Huge
The scale of the commercial lines market might be bigger than you think. The U.S. Small Business Administration reports that over 33 million small businesses exist in the nation.
In 2023, entrepreneurs submitted an unprecedented 5.5 million new business applications. A lot of these firms and new business proprietors require assistance in comprehending their insurance requirements.
The even more encouraging news is that you probably already know many of these business owners because many homeowners also run businesses. By providing commercial insurance to your current clients who are homeowners, you transform into a comprehensive service agency.
This strategy stops other agencies from leveraging commercial lines as a means to create a rift between you and your customers.
How Cross-Selling Commercial Lines Insurance Boosts Your Revenue
Suppose you provide a client with homeowners insurance. After a few months, she starts a business and inquiries about the possibilities in commercial lines.
Since you do not provide these services, you are unable to assist her.
She finds another agent who can, who also offers to shop around for a better homeowners insurance deal. You've just missed out on a potential business policy and risk losing your personal insurance client.
This situation could have unfolded differently. If you had been able to assist your client with her business insurance requirements, you could have closed the deal, earned a commission, and also kept her personal insurance business.
Target Where the Need Is
When people are looking for homeowners, renters, or car insurance, they might turn to an independent insurance agent. However, they also have the option to obtain coverage through other channels, such as purchasing directly from an insurance provider or a captive agent.
Conversely, business owners are much more likely to appreciate the knowledge of an independent insurance agent who can evaluate their insurance requirements and compare coverage alternatives.
The Big "I" 2023 Market Share Report disclosed that a mere 38% of all personal lines written premium in 2022 were routed through the independent agency channel, whereas a staggering 87% of all commercial lines written premium were.
If you're not expanding your commercial lines portfolio, you're overlooking a significant chance to capture a larger market share—it's akin to giving business away to your rivals.
Getting Started Is Easy
At this point, the argument for marketing commercial lines insurance should be evident. However, some agents may still be reluctant to dive into commercial insurance sales because concerns about the workload or navigating a variety of carrier appetites.
If you're feeling this way, here's some encouraging news: starting your journey in commercial lines will be less daunting with the right support.
Take for instance, Francisco Castro, who is the chief agent and managing partner at JCC Insurance Group. Francisco started his company by only selling personal lines but expanded into commercial lines after noticing his clients needed it.
Working with Smart Choice, he gained insights on commercial operations and got an appointment with Liberty Mutual—resulting in significant growth for his agency.
Smart Choice Solutions for Commercial Lines
Smart Choice offers three ways to access commercial lines, allowing you to select the best option for your needs and type of risk:
- Smart Start Commercial Lines is an online platform giving agents access to commercial carriers without appointments. Smart Choice's commercial team helps agents navigate the process, allowing them to write a wide variety of risks.
- The Smart Choice Agents Program assists agents in securing appointments with highly rated commercial line carriers via sub-codes, providing the maximum earning opportunities. Sub-coded agents share in bonuses and contingencies and have the potential to earn 100% of commissions after reaching a certain level.
- Express Markets provides options for hard-to-place risks in traditional markets. It gives access to excess and surplus line carriers, ensuring you can provide clients with what they need while receiving 100% of your commissions.
What's Restricting Your Progress?
Don't hold back your agency’s growth opportunities. If you’re ready to take your business to the next level, expand into commercial lines with the assistance of Smart Choice.
Our agents have access to top-rated commercial carriers—position yourself for significant growth and long-term success in this lucrative sector by leveraging existing client relationships and tapping into the high demand for expertise in commercial lines.
Expanding into commercial lines insurance represents a strategic move for independent agents looking to diversify their portfolio and boost revenue.
With Smart Choice's support and resources, agents can successfully navigate the commercial lines landscape, opening new revenue streams and strengthening client relationships, ultimately leading to a more resilient and prosperous insurance agency.