1. Look for a partner who provides tools and education

Simply telling someone to brace for bad weather does not provide the details necessary to stay safe. But providing education on where to seek shelter during a storm or offering a severe weather survival kit can make an impact.

Selling homeowners' insurance is no different. Most policyholders and prospects have a hard time understanding the details surrounding specific policies and options, so find a partner who provides educational materials and other tools that explain these complex topics to your clients. Look for carriers that offer educational materials specific to industry situations (i.e., a fact sheet on actual cash value (ACV) roof or a video explaining separate wind/hail deductibles).

Tools and educational training not only help educate your policyholders on how to get the most out of their insurance coverage, but also position you as a knowledgeable advisor. Though this may seem minor, as the market becomes more complex, consumers will rely more heavily on trusted sources rather than always seeking the cheapest option. 

2. Work with carriers who value frequent, convenient and open communications

Some carriers may provide you with all the tools you need to sell particular products; however, note how the actual communication takes place. For example, does the carrier:

• Proactively share information about policy changes in advance, or while the changes are taking place?
• Offer information about the greater direction of the business or industry?
• Provide information in the manner you prefer to receive it? For example, is the information accessible through email, direct mail, text message, etc.?
• Collaborate with you to gather feedback to identify the best solutions?

Ask yourself and potential carriers these questions as you work to identify the most strategic partner for you and your agency.

3. Find a carrier who understands no two clients are alike

Identify carriers that offer options. Agents understand that no two policyholders are alike, so strive to find a carrier who understands this, too. Given the current economic climate, consumers are seeking ways to modify their existing policies to remain insured while fitting within a particular budget. Partnering with a carrier that provides options to help you build unique policies to match different budgets and lifestyles will equip you with the necessary offerings to attract and retain business. Some examples of policy options include:

• ACV roof: This option allows the policyholder to insure the roof for its current value, taking into account wear and tear that has occurred over time, to receive a lower premium.
• Separate wind/hail deductibles: It's separate from the standard deductible, but can help your clients save on premium by raising their deductible only on damage stemming from this type of loss.
• Higher standard deductibles: This allows homeowners to easily lower their premiums.

Related: Read “4 Lessons to School Millennials on Renters' Insurance“

Carriers that offer these types of features will help you consistently offer quality coverage to your clients at a fair price, while still allowing you to remain profitable.

A look ahead

The industry will likely see higher catastrophe losses, a relatively weak macroeconomic environment, lower investment yields and the tapering off of the benefit of reserve releases, all of which could combine to weigh on profitability for the overall property-casualty industry.

What does that mean for agents? The industry will likely see a fundamental shift in the way it operates, increasing co-insuring on the part of the customer, as in ACV roof, for example. Because this shift will yield a new definition of customization, agents will need to be the source of policyholder education, offering more tangible examples and a more creative approach to selling, which further underscores the importance of identifying and partnering with a strong carrier.