Five actions firm owners should take to stay competitive
With the increasing M&A activity in the insurance industry, it is easy for firm owners to focus solely on their firm’s value. However, the real takeaway from this trend is the emergence of large insurance brokerages that can leverage their scaled resources to compete with smaller local competitors. In this post, we will discuss the five actions firm owners should take to survive and thrive in this competitive environment.
One of the crucial steps in staying ahead of large platform brokers is refreshing your technology. Make sure your brokerage is running on the latest software, has modern hardware in place, or is partnering with a technology service outsourcing provider who can bring the latest insurance technology to the forefront for your team. This way, you can engagingly present real-time information and stay ahead of competitors who may still need to work with outdated technology. Insurance outsourcing providers who can bring strong AI (Artificial Intelligence) platforms to the forefront for your team, such as PolicyChecking.AI, can give you an incredible advantage in ensuring you are using industry-leading, best-in-class workflows to ensure the accuracy and quality of bound policies.
Strong branding is essential for your firm to stand out. Whether creating a unique logo or developing a memorable tagline, your brand should accurately reflect your brokerage’s persona. A strong brand can help establish trust with your clients and set you apart from your competitors. This means focusing on building relationships in the community, being forward-facing, and finding opportunities for partners to augment your team’s operational needs. Insurance is the business of reducing risk through relationships; be present with your insureds.
With large platform brokers competing for a broad audience, developing niche expertise that can differentiate your firm can be crucial. Develop deep expertise in a few specific areas, whether cyber insurance or flood insurance. Doing so will help you attract clients with unique needs and stand out from larger competitors.
While larger platform brokers may have the advantage of scale, they often need a more individualized touch from working with a smaller, local competitor. Focusing on exemplary customer service can help you build client relationships and differentiate your agency. Remember, people do business with people they like and trust. Doing so may also require you to partner with an outsourcing partner who is also 100% focused on the insurance industry and has years of experience working within your technology and workflows.
Finally, investing in your team is a fundamental way to stay ahead of the competition. Hire the best talent you can find and give them the necessary resources to succeed. Provide ongoing training and support to ensure they stay current on the latest insurance trends and regulations. Doing so will help you build a team of experts to help you stand out from larger competitors.
Amid the current M&A activity, the insurance industry can seem overwhelming to many smaller local competitors. However, with the right strategies in place, smaller firms can not only survive but thrive. By refreshing technology, building a solid brand, developing niche expertise, focusing on customer service, and investing in your team, your broker agency can stand out from the competition and remain a leader in the industry.
About Patra
Patra is a leading provider of technology-enabled outsourcing services and software solutions to the insurance industry. Patra powers insurance processes by optimizing the application of people and technology, supporting insurance organizations as they sell, deliver, and manage policies and customers through our PatraOne platform. Patra’s global team of over 6,500 process executives in geopolitically stable and democratic countries that protect data allows agencies/brokerages, MGAs, wholesalers, and carriers to capture the Patra Advantage – profitable growth and organizational value.
