Did you know there are approximately 424,564 insurance brokerages and agencies in the U.S? With such a large number of insurance agents, it might seem hard to stand out.
But, there is a way—Focusing on a niche market or specific type of business or industry. That can help you gain an advantage over the competition and keep clients around for years to come.
Why? Because you’ll become an expert in that field, which will make you even more effective at making recommendations and handling policies. And when you make your clients happy, they’re more likely to stick around and recommend you to their friends.
To help you take advantage of the niche markets in your area, here is everything you should know.
What is a Niche Market?
When an insurance agency, insurance broker, or independent insurance agent focuses on a particular industry, product, or profession, this is called a niche market. Examples of niche markets in the insurance industry include:
- Building contractors
- Hospitality industry
- Lawyers
- Manufacturing companies
- Retailers
- Restaurants and food service companies
- Wholesalers
- Other local small businesses
Why Are Niche Markets Important in Insurance?
As an insurance agent, you may assume that the best way to get more business is to cater to everyone. It’s easy to think that if you cast a wide net and offer every insurance product to every industry, you will increase your book of business. But, more often than not, this strategy doesn’t help you land more clients. Sometimes it can do the opposite. It’s much harder to stand out when competing with tons of different insurance agents. But with a niche market, you can:
- Make your clients happier. As you establish yourself in a niche insurance market, you become an expert by default. This means you’ll get even better at making recommendations on what type of policies clients should get, how they can get discounts, risk management strategies they should consider, anticipating their insurance needs, and all sorts of areas that ultimately save your clients time and money.
- Get more referrals: When you have happy clients, they tell their friends about you.
- Increase efficiency: No more wasting time or marketing on industries that don’t yield solid profits for you. Instead, you can hone on the niches that make you the most money.
- Reduce competition: Instead of competing with the entire world of insurance agents, you’re competing with a smaller pool. You can get to know your match better—and know what they’re lacking.
How to Find the Best Niche Markets for You
So, now that you understand the value of niche markets, you'll want to identify the best ones for your insurance business. When figuring out your niche insurance market, it's wise to start by looking for niches in your community or region. Do a deep dive into your book of business and identify the types of clients you have. Is there a particular group or industry you enjoy working with over others? Or do you feel more knowledgeable about a particular type of business?
Once you start brainstorming some ideas, you can use the steps below to put a niche marketing plan into full swing.
Pinpoint Niche Markets Around Your ZIP Code
Is your city filled with a particular business or industry, such as automotive factories or brick and mortar retailers? If so, this industry or business might be a niche worth exploring. If nothing comes to mind right away, turn to Google to give you some answers.
You can also look at the friends and contacts you have. For example, do you know many people in the construction industry? If so, starting there may make the most sense since they can help you get referrals.
Decide Which Niche Markets are Right for You
After identifying some options in your area, it’s time to decide if these niche markets are worth exploring. Become familiar with the insurance coverage the niche needs.
Let’s use the construction industry niche market as an example. In that case, you’d make sure you understand insurance products like workers’ compensation insurance, liability insurance, errors and omission insurance, builder’s risk insurance, and commercial property insurance.
It’s also wise to research other insurance brokers or agents selling within the same niche. That way, you can determine if there is room in your niche. If there are a lot of brokers nearby selling that insurance, you may want to consider other options.
Keep in mind that it’s wise to start with at least three niche markets. This way, you’re not putting all of your eggs in one basket. In other words, if one niche market turns out to be a flop, you have two more to put your attention towards.
Check With Your Insurance Carrier
Before you move full steam ahead with a specific niche, it’s wise to consult with your partner insurance company or underwriter. First, ask them if the niche you’re interested in is growing or declining, given the current state of the economy. They may be able to share some insight into which industries or markets yield the most success.
You’ll also want to verify that they offer the products that your new niche clients will need. If not, you could create a custom insurance package of products. For example, if your niche market is the restaurant industry, you could offer a workers’ compensation insurance policy from one company and a general liability insurance policy from another.
Continue to Test and Adjust as Need Be
Suppose you don’t identify the perfect niche right away. Don’t fret. Finding the right niche may require trial and error to see what works. As you test a niche market and gather information, you can adjust as you see fit. For example, if your niche is too specific, you may need to broaden the niche.
Remember, this entire process may take time. So, don’t get discouraged if your first few attempts don’t go as planned.
How to Create a Niche Insurance Marketing Strategy
Finding your niche market is only half the battle. Now you have to put your best foot forward and find leads.
While it’s tempting to throw up a website or landing page and wait for the leads to flow in, this lackluster approach will likely result in disappointment, not growth. So instead, you’ll want to create a marketing strategy. This way, you can make your presence known and eventually attract the right leads for your business.
Here are a few suggestions for creating a marketing strategy:
- Write informative blog posts: Educate your niche insurance market so you can show them you’re an authority in the field. For example, you could create a post outlining the types of insurance in that insurance market, give insight into local insurance requirements or update them on the latest news that could affect their rates. You can also turn these into videos, so your audience can digest the content if they aren’t interested in reading. Ninety-three say they gained a new client by creating a video.
- Place ads where potential clients are looking: Advertise on the platforms your clients use most. If they’re mostly googling to find the right type of insurance, buy some Google ads so you show up at the top of search results. If they’re on Facebook, go there and target a specific group or demographic of people so you can reach your niche market.
- Send out emails to your leads: Consider sending emails to the leads you have collected throughout your career. Include something helpful in them, like advice they wouldn’t get otherwise. Don’t forget to add an easy way for them to get in touch and learn more about your services.
- Post on social media: For better or worse, a lot of people are on social media. Like what you’d do when you place ads, find the platforms your clients are on and post regularly. Make sure these posts cater to your niche market. They can do a range of things–from making them laugh to giving them helpful information.
Go for those Niche Markets
Focusing on a niche market is an excellent strategy to grow your insurance business. Even if it seems overwhelming at first, it will become second nature with some planning. So, prioritize carving out your niche and gaining expertise within the industry. Keep an eye on the trends within the niche and identify how you can better help your clients.
Remember, an effective niche marketing strategy may require some trial and error. So, if it doesn’t take off right away, be patient and continue to assess your results. After all, as they say, if you don’t succeed at first, try again.
1. Introducing Yourself
Your introductory email needs to pack a lot of information into a small package. Try something like this:
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Hello Jane,
My name is John Doe and I work for ABC Agency, where we provide business insurance policies to many of Dallas' rockstar small businesses.
Congratulations on your new business, Jane's Bakery. Are you wondering if you have all the insurance you need? Or if your policies will really cover you in a pinch?
At ABC Agency, we pride ourselves on providing robust, comprehensive coverage options to companies like yours with flexible, pay-as-you-go plans.
Are you available this week to talk more about how we can help? I can help you find the most affordable rates and the best policies out there.
I look forward to speaking with you soon.
Cheers,
John Doe
2. Presenting a Quote
Once you've met with your potential client, a quick reply with their quote will get the ball rolling.
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Hi Jane,
Thanks so much for meeting with me this morning. I loved touring Jane's Bakery–I can still smell those delicious chocolate chip cookies baking! You have a great location, and I'm sure you're going to do great on Front St.
After reviewing my notes, I've pulled together an insurance quote for you (attached). I recommend a business owner's policy. A BOP includes several insurance products in one: liability, property insurance, and business interruption insurance. It offers robust coverage at a competitive price.
I'll call you in a few days to see what you think about this insurance plan. In the meantime, if you have any questions, don't hesitate to email me or call me at [phone number].
Again, thank you for your time today. I look forward to working with you in the future.
Cheers,
John Doe
3. Thanks for Purchasing a Policy
Gratitude is important! It's never a bad idea to thank your clients for their business.
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Hi Jane,
Thank you for choosing a business owner's policy with ABC Agency. We know it's so important to get the right coverage for your business, and we are honoured you've placed your trust in us.
We're excited to work closely with you, and our no. 1 goal is to make sure you're business is always protected.
Do you have any questions? We are here to help. Reach out whenever something comes to mind.
Thank you again for choosing ABC Agency to insure Jane's Bakery.
Cheers,
John Doe
4. Welcome Email
A welcome email helps clients feel like you're there to help–and can softly pitch other insurance products you offer.
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Dear Jane,
Welcome to the ABC family! We are thrilled to have you as a new customer and can't wait to meet all of your insurance needs.
As an independent insurance agency, we work with multiple insurance providers to find the best coverage options for all our customers. If you need any other type of insurance–like [include additional offerings unique to your agency, like life insurance, health insurance, home insurance or anything else]–we can help you too.
Do you want to discuss any of these policies?
Cheers,
John Doe
5. Introducing a New Product
A happy client may want to expand their business with you.
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Hello Jane,
I hope all is well with you and Jane's Bakery. I stopped in yesterday for a blueberry muffin and coffee, and they were delicious. I loved the hint of cinnamon in the muffin! Was that your idea?
I wanted you to be the first to know we are now offering commercial vehicle insurance to our policyholders. Auto insurance for your catering vans is super important since your personal car insurance won't cover them.
We're offering this insurance coverage solely to our current business clients at the moment and have some very competitive rates.
Would you like me to work up a quote for you?
As always, thanks so much for being a part of the ABC family.
Cheers,
John Doe
6. Asking For Referrals
Once your relationship is established and comfortable, let your clients help you grow.
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Hi Jane,
You've been a valuable member of the ABC family for two years now, and we so appreciate your business–not to mention the muffins you supply for our monthly meetings!
Because you are a valued policyholder, I wanted to ask a quick favour. I know you are active in the local Chamber of Commerce, and I'm hoping you might know some colleagues who would benefit from working with our insurance company.
Referrals are one of the most effective ways to connect with our community since people really trust their friends, family and colleagues. Is there anyone you'd recommend I speak with?
Remember that in addition to business insurance products, we offer everything from life insurance policies to pet insurance.
As a thank you for your help, we will send you an Amazon gift card of $100 when your referrals buy insurance from us.
Thanks so much for your help!
Cheers,
John Doe
7. Policy Renewal
If your client needs to renew their policy with you, send an email like this:
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Hi Jane,
I hope you're doing well! What a year it's been—from being listed as one of the top 5 bakeries in Dallas to being an official vendor for the city—you have so much to be proud of.
Just a heads up that your business owner's policy is up for renewal soon and will expire on June 15, 2023.
If you're still happy with the coverage, we can easily renew it for you.
Do you have some time to chat this week?
Looking forward to serving you again!
Cheers,
John Doe