How can an insurance agency expand their business in this economic climate?
The answer is diversification. If your a insurance agent that only writes personal auto and homeowners your need to change it and start writing commercial insurance.
A good way to get into writing commercial insurance would be writing surety bonds. If you have never heard of bonds, a bond provides consumer protection as a condition to granting licenses related to Motor vehicles, Mortgage Brokers Contracting services and other professional regulated licenses. Each State has its own surety bond amount as well as Bond form. I know it doesn’t really sound like a form of insurance, but it is. You can only sell surety bonds if you have an insurance license.
Finding Leads and getting them
To get leads start with your sphere of influence. Go threw your contact management system and target your clients. Find out who needs bonds and who doesn’t. After you have your list dial for dollars, send mailers and emails. I like to include a simple application for them to fill out to get a quote with my mailers.
If you are already writing commercial insurance for contractors, car dealer and mortgage brokers you’re already ahead of the game. All of these businesses must have a surety bond to operate their business. Call them up and ask when does their bond expire and how can I earn your business?
If you write the bond your client is less likely to move their commercial insurance to someone else.