Three strategies for commercial broking success
Three strategies for commercial broking success | Insurance Business Canada
Insurance News
Three strategies for commercial broking success
CEO shares his top tips for navigating the hard market
Insurance News
By
Gia Snape
What does it take to achieve success in the commercial insurance world?
The summit will bring brokers and insurance experts together to share their knowledge and best practices, unpack the most significant issues in today’s market, and discover new strategies for achieving success in 2024.
Ahead of the event, Michael Malfa (pictured), chief executive and co-founder of Boardwalk Insurance, delved into a few strategies that have proven effective for brokers aiming to carve their niche in the market.
Develop your specializations
One of the cornerstones of success for brokers, according to Malfa, is specialization.
In a market where mid-market clients seek expertise tailored to their specific industry, brokers who specialize tend to connect better with potential prospects.
Malfa emphasized the importance of finding a niche and developing expertise within it. Whether it’s pharmaceuticals, real estate, or any other industry, starting with a specialization allows brokers to build a strong foundation before branching out.
“Whenever a producer starts with us, we always begin at their comfort level. If they have a network and are comfortable speaking the lingo, they can build up their portfolio there, and then start moving on to other segments,” said Malfa.
“But rather than going after 10 or 20 different classes of business, maybe start with three to five and get comfortable – and then move on and start expanding horizons from there.”
Expand your market and product access
In an environment where market dynamics constantly evolve, having access to a diverse range of products is crucial.
With insurers becoming increasingly selective, having access to multiple markets enables brokers to secure the most competitive terms for their clients.
Malfa highlighted the significance of robust product access in a hard market: “We have all kinds of different businesses come into the brokerage, and if we’re relying on three different insurers, we would have a very difficult time placing that business.
“Brokers need to have access to a fairly robust product shelf, and that could be through various insurers and wholesalers.”
Newer brokers can broaden their market access by tapping managing general agents (MGAs). Malfa encouraged brokers not to be afraid to leverage MGAs and to collaborate with insurers and wholesalers to ensure they can effectively cater to their clients’ diverse needs.
Bridge the gap between client expectations and insurer service standards
Some of the most successful brokers can artfully balance client expectations with insurer service standards.
Clients often expect swift responses and turnaround times that may not align with carriers’ standards. Brokers can bridge this gap by implementing efficient systems and processes.
“Customers all have very high service standards,” Malfa said. “They expect certain turnaround times, certain response times, [but] the insurers have their own service standards, which are usually nowhere near what the customers are expecting, so brokers should be right in the middle bridging that gap.”
Leveraging technology allows brokers to streamline workflows, access data instantaneously, and promptly generate essential documents like insurance certificates.
“Brokers’ processes for gathering information from the client, getting it into their BMS system, and getting it out to the insurance company should be almost instantaneous,” Malfa said.
The role of technology in broker success
Technology emerges as a common thread throughout Malfa’s strategies for success and plays a crucial role in augmenting efficiency and effectiveness.
He added that brokers must embrace innovative tools and systems that enable seamless connectivity with clients, insurers, and data sources.
By embracing specialization, ensuring access to diverse markets, and leveraging technology to bridge gaps, brokers can enhance their value proposition and drive success in the competitive insurance market.
As the industry evolves, staying adaptable and proactive remains vital to sustained growth and client satisfaction.
Don’t miss this unparalleled opportunity to network with industry peers, gain expert knowledge, and position yourself for success in the dynamic world of insurance. Join us at the Insurance Business Broker Summit in Toronto on April 24.
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