The Importance of a Diversified Insurance Practice for Success

diversified insurance practice
Relying exclusively on one market segment can be hazardous to your business and financial health. There’s a high probability of failure if that one thing you’re relying on goes south. Diversification is vital for your insurance practice to succeed and grow well into the future.

Here are four ways to diversify your business:

Product portfolio diversification

Cross-selling a variety of insurance products is a great way to expand your pool of potential buyers.

Not everyone needs individual health insurance. In fact, according to the Kaiser Family Foundation, roughly half of Americans today have group insurance, while about one-third (32%) have Medicaid or Medicare. In spite of the Affordable Care Act (or, perhaps, because of it), the market for individual health is somewhat limited.

However, if you sell Dental and Vision insurance, you can increase your sales and help more prospects and clients.

Our Cross-Sell Engine gives you the ability to cross-promote products to your website visitors based on what they already have in their shopping carts. We offer the ability to set your own rules.

Diversified prospecting and outreach

If you’re generating leads through Search Engine Optimization (SEO) and your rankings tank, that means no more leads – and, potentially, no more business.

However, if you diversify your approach, you can generate leads in other ways like online advertising, offline advertising (magazines, newspapers, newsletters, directories, etc.), cold calling, networking, and referrals.

Diversified communications

Every market segment (baby boomers, generations X and Y, and millennials) has different needs. Saying the same thing to all of these groups isn’t going to get you very far.

Diversify your messaging – tailor your communications to the unique desires and goals of each target group. You will improve your communication and build a better connection with each of your target audiences.

Diversified learning and improvement

How did you learn your craft? Books? Seminars? Webinars? From a mentor?

Hopefully, through a combination of methods. A single source of knowledge can sometimes lead to a single view.

Immersing yourself in new and varied sources of information is a great way to stay sharp as an insurance professional. Make an effort to learn new prospecting or networking strategies from alternative sources on a regular basis.

You may run into similar content from multiple sources, but when you stumble upon something new, it could change the way you do business for years to come.