Commercial Lines

Agency Networks have historically been viewed as a great way to access markets, which is certainly a value proposition of most networks, aggregators, and cluster groups. However, the typical costs of participation make the financial equation puzzling. 

Small commercial is still largely controlled by independent agencies, is reliably profitable, but highly fragmented. Even the “titans” of the industry have less than 10% market share. In short, small commercial is ripe for the taking. Sounds great, right? 

The first half of 2020 has been interesting, to say the least. We are facing unprecedented times as we try to manage our work and personal lives from home – working remotely, participating in zoom meetings, juggling school schedules and workloads, while doing our best to continue the roles and responsibilities of our own jobs.

There’s no doubt about it: the COVID-19 pandemic has changed the way we do business. It’s likely most of your commercial customers are struggling. You yourself may be fighting to keep your agency afloat. It may even be tempting to press pause on communicating with your commercial customers and wait out the pandemic — I strongly encourage you to fight that impulse.

Business owners large and small understand that controlling expenses is an important part of their success, and insurance premiums are part of that equation. Since workers’ compensation is a “must-have” for most employers (meaning, it’s required by law), what steps can be taken to control these insurance costs?

If you’re not writing commercial, you’re letting a  major income opportunity pass you by. While independent agents compete with captive agencies and online brokers in the personal lines market, we have the corner on the commercial insurance market.

Where calls, emails, and social media were originally meant to enhance the in-person conversation that took place, they have instead replaced human interaction altogether. I find this to be especially prevalent in commercial lines business, as many agents are tempted to simply go through the phone book and call the businesses you’re targeting in the area, instead of just visiting in person to make the sale.