#1087 Hard Markets and Soft Landings

Last week, I had the honor of speaking to Big I Oregon, the association of independent insurance agents in that great state, and those folks made me feel like family. Thank you, Big I Oregon!

The title of my talk was “Business Development in Disruptive Times.”

The Insurance industry is experiencing some disruptive times, with almost 28 billion in underwriting losses in 2022 compared with under 4 billion in 2021. A six-fold increase in losses causes a significant ripple in the market. Policy prices increased as the appetite for risk decreased, squeezing insurance sellers from both sides.  

Sincerely, with zero sarcasm, I say, Sounds like opportunity knocking!

I’m not being flippant or disrespecting the tough slog a hard market brings, but here’s my take. 

First, a market like this shakes out the mediocre, leaving more opportunities for real professionals. Secondly, people don’t buy on price. They default to price in the absence of value. With price increases across the board, the folks who provide value should see an increase in business. If almost everyone is getting price increases, then it stands to reason that nearly everyone is shopping. This is the competitive advantage of great salespeople who have built their careers on relationships. Their clients will include them when they shop, and their relationships will help them to retain more than ninety percent of their clients who check on the price increase. In fact, those pros won’t wait for a call. They will be out in front of the issue, telling their clients why an increase is coming.

Additionally, they have a tremendous opportunity to pick up clients who are shopping without including their existing agents because those agents have not built their careers on relationships; they were hit-and-run price-sellers. 

They were hunting the slow deer, picking up easy sales based on price. When the only differentiator you offer is price, what do you think happens when you no longer have the best price?

Keeping in touch and offering advantages and advice without an imminent opportunity is the stock and trade of value-sellers. Whether we are talking about selling insurance, real estate, widgets, or ideas, relationships rule. Even in relationships, relationships rule! How will you weather the storms with family, friends, employees, or bosses if you haven’t deposited regularly in the relationship bank?  

I’ve said ad nauseum that this skill set, the esoteric bits that go into being a relationship ninja, will do more for your success in every area of life (including your bank account) than any other skills you can master.

This is your competitive advantage, and while your competition spends their days moaning about a hard market, you will be the soft landing their disenchanted clients are looking for.

Own Your Sales Gene…