Founded in 1899, AM Best is a global credit rating agency, news publisher, and data analytics provider that offers Special Presentations on AM Best TV around specific topics. NIP Group CEO Richard Augustyn was featured on a recent episode with fellow thought leaders Geof McKernan (CEO of NSM Insurance Group) and Troy Korsgaden (Principal of Korsgaden International) to discuss how transitioning from generalist to specialist has broadened their opportunities for success in the insurance industry.
Augustyn kicked off the conversation about the benefits of specialization and how it can increase efficiency, credibility, retention, and revenue as compared to a “one-size-fits-all” approach.
“Specialization allows agents and brokers and MGAs to really set themselves apart from their competitors far beyond the table stakes,” Augustyn explained. “Whether the specialization is at the line of business level, at the industry level, or even in a region, it gives them a unique competitive advantage and what you might want to call a sustainable ‘right to win.’”
The group went on to discuss a variety of topics around specialization:
- The challenges of finding and retaining talent in a niche industry
- Choosing a niche and growing your company
- The role technology has played in the ever-changing risk landscape
- The biggest lessons the panelists have learned from specializing
- How narrowing your business or industry focus allows you to develop – and demonstrate – your expertise
- The benefit of wholesaling to offer a more complete package
- Upcoming trends in specialization
- and much more
One of the biggest and ultimately most rewarding reasons to choose a niche is because it enables you to use data and expertise to help your clients and customers.
“You also start to build valuable data sets that allow you to examine, analyze, make better and faster decisions, and ask the right questions. The last thing a broker wants to do is answer 30 standard questions… use your data, use your expertise to ask the 3-5 questions that matter the most,” Augustyn advised.
He added that if you examine data in real-time, you’re going to spot claim trends that can then help prevent accidents from happening in the first place. Augustyn gave an example of how that happened with NIP Group when three crane trucks tipped over in a short period of time, costing several hundred-thousands of dollars each. After looking at the claims, he found that there was a common operator error and brought it to the attention of the manufacturer. The manufacturer then adjusted their equipment, adjusted their communication and training around the equipment, and since then, Augustyn said, there hasn’t been another occurrence.
The session closed out with Augustyn sharing that some of NIP Group’s best program ideas have come from evaluating the declination list and asking if there are adjacent industries that might be emerging or worth a second look. “Saying no is an important part of what we do,” he concluded.
The episode was filled valuable insights and tips that can be implemented right away. Watch the entire video below.
