Targeted Insurance: Developing a Niche Market
For insurance agents and brokers, developing a niche market is an ideal endeavor, as it allows them to combine their specialized knowledge with their unique skills and business contacts. What is a niche market, exactly? While some define “niche” as being “small,” this is not necessarily the case. Niche might mean that the market is simply in an area that doesn’t receive a lot of attention from the wider insurance industry, for a variety of reasons.
Basically, a niche market is a group of potential customers who share common characteristics. These characteristics make them particularly receptive to customized products or services that an insurance firm may offer. For example, an MGA may solely focus on the Workers’ Compensation market in a difficult state or region that requires localized expertise. Or, an agency might put their focus solely on outdoor recreation insurance in a specific geography.
Insurance experts tend to agree; if agents and brokers are just a “general” business lines or personal lines agency, they are behind the times. It’s more important now than ever, with emerging technologies and modernized business practices, for agencies and MGA’s distinguish themselves from their competitors.
K2 Insurance Services, based in San Diego, CA was developed to create innovative insurance solutions for niche markets. They are leading the way with creative distribution partnership initiatives, within several underserved market segments.
Let’s say you know what niche marketing is, but you don’t see the benefits of such a targeted marketing practice. Specialty Insurance experts claim that targeted or niche marketing is actually associated with higher than average profit margins. By taking the time to identify a target market and launching an effective sales campaign, agents and brokers should reap the financial benefits associated with providing products for underserved markets.
With all this in mind, niche markets shouldn’t be too broad. For example, homeowners insurance is a very broad and seemingly saturated market; but perhaps this could be narrowed down to lower value coastal homeowners insurance. Agencies that target to a broader audience are likely reaching people who can use their service, however agencies that develop a niche market are targeting prospects who are likely to buy that service from them versus their competitor.
K2 Insurance Services, LLC was formed by two insurance industry veterans with the purpose of acquiring managing general agents and developing multi-line programs. Our goal is to distribute innovative products through retail and wholesale distribution channels. To learn more about our services and our partners, please contact us today at (855) 976-8113 or visit K2INS.com.