New Insurance Markets and Targeting Demand
It’s a good thing that the insurance industry changes with market demand. If, as agents, we have to provide products that resolve the various risks of our clients, it’s imperative that the carriers we represent meet the needs of the marketplace.
A good agent have to recognize new insurance markets and target the silent demands of clients.Even if new products aren’t introduced to mitigate new risks, old products can be redesigned to meet the needs of the agent and his or her clients. If we consider new and revised business classes that have evolved in the last ten years, there are some amazing opportunities that can be considered as new insurance markets. The successful agents take advantage by offering the new insurance products needed to mitigate the risks. Here are just a few examples every agent should consider:
Technological advances have paved the way for new businesses to flourish and as such, created new insurance markets. One of the most popular businesses is Airbnb. This idea sprang up in 2008 by three California entrepreneurs; Joe Gebbia, Brian Chesky, and Nathan Blecharczyk. Through their innovation, individuals and families all over the world have been able to enter the hospitality industry with very little effort. Their technology platform makes it possible for consumers to rent homes, mansions, castles, and yachts all over the world.
Insurance carriers recognized this insurance market opportunity and have responded to the needs of this business class by offering affordable coverage for entrepreneurs who wish to offer rental properties on a daily basis. In most cases, existing products were redesigned to satisfy the need of this rapidly growing market niche.
Uber is another new market that was conceived as a result of new technology. This ridesharing platform allows consumers all over the world hire a car at the tap of a button. In areas that are underserved by taxi companies, individuals who need a ride simply open an app on their smartphones.
With Uber, not only consumers benefit. The platform also allows individuals all over the world to be in the transportation business with a simple app that is provided by the company. It allows individuals to be in business where they want and when they want. This technological marvel has turned the transportation business on its ear and the insurance companies have responded (although slowly) to the needs of the entrepreneurs who are getting on board, recognizing the new insurance markets, brought about by the evolution of technology and ideas.
Typically, where there is innovation, there is risk. The technological advances are not without risk as sophisticated hackers find vulnerabilities in systems worldwide. When a business is open, they are in some way or another connected to the internet. This connection is a gateway for bad actors to attack systems in order to steal sensitive information.
The standard professional liability policy lacked many of the coverages necessary to protect businesses from the cyber threats that happen every day. The recognition of this new insurance market gives birth to cyber liability packages. Agents can now present cyber liability packages to ensure that they meet the needs of their clients. A typical cyber liability package offers financial protection when a data breach brings a business to its knees because of the costs associated with the theft of sensitive information.
Just as businesses are at risk of theft of sensitive information, so are individuals and families. Hackers who steal your sensitive information (your identity) can easily set up bogus accounts in your name, and as a result, create financial hardships that can be devastating.
Although it is virtually impossible to prevent identity theft, new insurance products have been designed to take care of the expenses associated with returning your clients back to normal. Agents have a responsibility to help their clients manage their everyday risks, and identity theft is now near or at the top of the list.
The best agents succeed because they are able to recognize fertile grounds. There are new insurance markets everywhere, you just have to be thoughtful and resourceful. Think about the new ideas and businesses that arise, whether due to advances in technology or not. Consider the risks that these businesses face and think of ways in which an insurance product can be designed to meet these needs.
That is one of those qualities that makes the best succeed.