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Develop a Niche Market By Specializing in Specific Insurance Products

The insurance market remains competitive for independent agents and brokers. With many other ways to purchase insurance, along with the rising popularity of direct digital options, it is important to find ways to stand out. Developing a niche market by specializing in specific insurance coverages or products is one strategy agents can use to differentiate their services.

Learn how to develop a niche market with this step-by-step plan. 


Develop a Niche Market to Differentiate Your Agency

Specializing in a particular niche allows you to become the expert in that area, which means when customers need your services they will think of you. Having too broad of a focus could make it challenging to develop a strong expertise in any particular area since you must know a little about a lot of things. Instead, changing your focus to learning all there is to know about a niche product or service means you can provide expert guidance where others can only offer shallow advice.

But as the expert, potential customers will seek out your advice for complicated situations and refer you to their friends who need similar advice. Here is a plan to help develop your niche market and stand out from the competition:


  1. Decide on your niche market. Clarify your niche and focus on narrowing your scope if necessary. To do this, you might make a list of your prior experience, achievements, educational opportunities, and interests. See what stands out and where there are overlaps — that may be your niche market.


  1. Consider your target customer’s wants and needs. This is the time to think about how to meet customer needs within your niche market. Think about what your policyholders and potential customers want from their agent, as this differs greatly depending on your niche.


  1. Research your potential niche market. Consider the amount of competition in the niche you are considering and how available the market is to new entrants. Finding a niche market with low competition will help you stand out even more.


  1. Gain additional education and expertise. Add to your credentials by taking advantage of courses or designation programs to learn more about your niche. Subscribe to newsletters, attend webinars, and find CE classes to supplement your learning. Use this time to begin sharing about your niche market to become a thought leader — post discussions, share articles, and ask questions of others to develop additional expertise and perspective.


  1. Enter the niche market and regularly review your plan. After doing your research and developing yourself as a thought leader, it is time to enter your niche market. Once you have established your services, continue to regularly review your results. Make sure the niche market is still working well for your agency by reviewing metrics and seeking feedback from policyholders. Being open to changing your plan is important to remain competitive as the market is dynamic and always evolving.


Gain Access to Preferred Markets With the American Agents Alliance

Members of the American Agents Alliance in California can gain exclusive access to preferred markets — another way to develop a niche market. This special program allows agents to access quality markets built together with our carrier partners.

Become a member today for access (only for California producers).



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