There is no shortage of challenges currently facing the insurance industry. The regulatory aspect of insurance is not getting any less complicated, and premiums are continuing to rise which is adding some stress for your clients, as well.
As of the fourth quarter 2023, commercial insurance premiums had increased for 25 consecutive quarters – an almost unprecedented run. The Council of Insurance Agents and Brokers’ fourth-quarter market survey revealed a 7% overall increase in Q4 2023, with certain lines of business like commercial property insurance up nearly 12% (though that number had decreased from a 20% jump in Q1).
What does it all mean? In short, insurance is no less complex or convoluted. Things are always changing but the job of brokers doesn’t change: it’s about finding the right coverages for clients to protect their business and empower them to keep growing their business. Any advantage is a competitive advantage, and one of them we’ll talk about here is market research and insights.
The power of current data and insights with insurance
Great data is a powerful tool in insurance. From the broker’s perspective, you can look at it as a way to (somewhat) predict the future and be ahead of the curve. While we can’t say for certain what the world will look like in future quarters or how the economy will fluctuate, we can use information to inform our decisions.
You need to be able to forecast risk (and price it). You need to understand your clients and implement strategies that make the insurance process more efficient and save them as many headaches as possible, and also keep finding new products that can help them.
Improving client support with better market insights
Your clients have a lot on their plate: running a business, working with other contractors, reviewing projects, keeping projects on time and on schedule…the list goes on and on. Making insurance easy to understand and easier to access is a top priority for brokers; it’s a win-win proposition when clients trust you have their best interest at heart and provide exactly what they need in terms of insurance.
Market insights and up-to-date research can help you do that. Here’s how.
The importance of market insights in insurance
The latest information regarding customer data, insurance trends and various other data points put you ahead of the curve. Acquiring new business is costly, and when you consider that most brokers lose 10-15% of their business every year, it’s critical to understand what clients want and how to serve them best.
How to collect valuable market research
There are two primary methods to collect data: first, by conducting your own client surveys and asking pointed questions that can help you.
- What do they like about their current coverage(s)?
- What would they like to see different or new in terms of offerings?
- What is most confusing about their insurance?
- Are they confident in their policy? Why or why not?
Secondly, you can study quarterly research produced by some of the main players in the market research game for insurance. These reports, while not specifically tailored to your business or clients, can help you better understand why certain changes happened in previous quarters and what may lie ahead.
Applying market research to support your clients
The results of this research are all about action. If you’ve seen that clients want a more robust offering, are you able to provide it? Not only is meeting their expectations important, but also specifically addressing concerns or needs. Clients will have more confidence if they know you’re willing to listen to them and adjust accordingly.
The benefits of staying informed and staying ahead
Long story short, it’s a major competitive advantage (as we said earlier). Not only will you have a better grasp of your current client base, market research will also give you keen insight into potential new customers. For example, if research indicates a segment of customers feels underserved by their current provider and wants more tailored coverage, you have an opportunity to sell NIP Group coverage knowing their concerns.
NIP Group helps brokers win business with specialized insurance and unrivaled support
Who is NIP Group, and what do we do?
Our company is a trusted partner with more than 35 years of experience as an insurance industry leader, working with contractors in a variety of trades to write specialized insurance policies. With an extensive repository of resources, we support brokers and their agencies with marketing materials, fact sheets and other content to win more business.
Ready to get started? Learn more about the support we offer here.
