How Optimistic are Insurance Agencies about Industry Growth?
According to insurance agency software development site Vertafore, 70% of large agencies that they surveyed said that they felt “very optimistic” about future growth, while only 25% of small agencies felt the same way. The study, called “How Independent P&C Insurance Agencies Are Thriving in Today’s Competitive Marketplace” was conducted in partnership with analyst firm, Aite Group.
In the survey, it was found that 59% of midsize agencies felt “very optimistic” and 46% of small agencies felt “somewhat optimistic” about future growth in the industry. The reason many agencies do feel optimistic about future growth is attributed to diversification of product lines. Large agencies typically have more of an ability to utilize a number of various commercial package and property insurance policies than a smaller, less funded agency would. However, diversifying product offerings will greatly improve any agency’s growth rate.
The utilization of advancing technologies may be another reason that many agencies are optimistic about insurance industry growth. Agencies today are deploying advanced customer self-service capabilities on their websites including chat, video conferencing, mobile, and more.
Technology and product diversification are not the only contributors to insurance agency growth. In addition, many agencies are partnering with insurance companies to access their full range of marketing management tools, while others are partnering to leverage their predictive analytics capabilities and build more targeted prospect lists.
In our next blog post, we will take a closer look at what the main drivers of insurance industry growth are. PLRisk Advisors is a leading wholesale insurance brokerage covering the professional liability market. In addition, we provide a portfolio of relevant products, including Directors & Officers Liability, Employment Practices Liability, Privacy & network Security Liability, Commercial Crime Liability, and Fiduciary Liability. Please contact us today at (855) 403-5982 to learn more.