"With specialization, we're seeingbrokers positively impact and improve their business in a varietyof ways," says Mike Furlong.

Emerging risks are creating new areas of business that agents,brokers, intermediaries, and insurers must embrace tocontinually grow business in the future. In fact, a survey ofmiddle-market brokers by McKinsey shows two-thirds expect toshift to a more specialized model within the next half-decade.

Mike Furlong, CEO and co-founder of Indio Technologies,shared with PC360 the ways he sees specializationimpacting agents, broker, and the insurance industry.

PC360: For generalist brokers, what are the commonreasons why they are hesitant or choose notto specialize?

Mike Furlong: Forgeneralist brokers, their mindset is often centered around coveringas many industries as possible. They tend to feelthat specializing limits their opportunitiessince they're honing in and focusing on one specific industryinstead of a variety. What they overlook isthat specialization can in fact greatly improvetheir business because they're able to form strong industryrelationships, increase productivity, reduce competition withintheir chosen field, and make daily operational tasks more efficientand strategic.

PC360: How have youseen specialization positively impact a broker'sbusiness?

MF:With specialization, we're seeing brokers positivelyimpact and improve their business in a variety of ways. Specializedbrokers have the ability to take advantage of new opportunitiesthat enable them to better serve clients.

Tostart, specializing can help brokers enhancetheir sales and marketing tactics. Clientsincreasingly expect tailored services across industries, includinginsurance. Brokers who specialize are able tocater to the needs that exist based on their experiences and whatthey're seeing unfold in the industry. From there, they can fosterenduring relationships with clients by catering directly to theirneeds, ultimately helping increase a client base and improvingretention. Brokers can also develop and strengthen their network byattending industry events and meetups that cater totheir specialization. Cannabis, autonomous vehicles, andcybersecurity are just a few growing industries where we're seeingbroker specialization. By attending events and conferencescatered to these markets, brokers can build positive relationshipswith industry professionals and increase name recognition, helpinggenerate more business.

Brokerswho specialize are also able to develop productexpertise in their selected field, leading to increasedproductivity, workflow, and more efficient operations. In order tobe seen as a credible, go-to-source within a specialized field,brokers must know the ins and outs of the industry. By increasingtheir knowledge on an industry topic, brokers better understand theneeds of their clients, providing them with the tools they need toprovide unmatched service.

Lastly, specializing provides brokers with theopportunity to focus on a niche that is of interest to them bothpersonally and professionally.

PC360: What are the consto specialization?

MF:Specialization requires brokers to devote a large amountof time and energy to becoming experts in their fields. In order tobecome credible specialists, they must conduct market research,review trends and news, and stay up to date on all the ways inwhich their clients can be impacted by their niche industry. Whilebrokers aren't able to become specialized experts overnight, thebenefits of offering this type of service to clients is worth thededication and effort.

PC360: How do consumersperceive specialists? Are they more likely to use a specialist orare they okay with using a generalist broker?

MF: While choosing abroker comes down to personal preference, consumers who decide tomove forward in working with specialists can often find thatthey're able to take advantage of the benefits that generalistbrokers aren't always able to provide. This includes more targeted,direct coverage that is tailored to their area of focus, and a newlevel of expertise and guidance regarding industry-relatedrisk.

PC360: Do you have anyadvice for new brokers who may wantto specialize?

MF: Now more thanever, businesses need specialized insurance assistance in popularand trending markets. Professionals responsible for applying and/orrenewing insurance are often unsure of their risk exposure or whatcoverage they need. Being able to help these businessesby specializing in a particular niche providesbrokers with a new opportunity to offer more value and expertise toclients than ever before. If interested in following this path,brokers must do the following:

• Carve out your specialty andbecome an expert in it. Brokers must know the insand outs of their niche in order to speak with authority on thetopic. This is incredibly important in order to be viewed bypotential and established clients as a credible advisor.
• Follow yourmarket. Brokers need to demonstrate theirknowledge and understanding of their areaof specialization. Attending conferences, meetups andindustry events that are centered around their focus helps increaseindustry awareness. Brokers must also review trends, news, andchanges that might affect their clients and assess risk on aregular basis. This will allow them to provide extraordinaryservice to clients with their attention to detail and knowledge ofthe industry.
• Utilizetechnology. Brokers who utilize technology can focus more on developingtheir specialization capabilities and providingunmatched customer service than wasting time on manual tasks.

Articles from MikeFurlong: 

• Why insurance agents should adopt electronicpayments
• How insurance agencies can boost customer retentionby 95%
• Four ways agents and brokers can capture growth in2019