Ieuter Insurance Group- A Guide
Underserved markets can look like great opportunities, and sometimes they are great opportunities. The problem is that sometimes no one has gone into that market not because it’s been overlooked, but because it is a bad market. Here’s how to tell what’s true in your situation. Learn more about Ieuter Insurance Group – Midland Insurance.
“Markets” can be understood in two ways — a geographic market, like the Boston metro area, or a specific kind of insurance policy or group of customers, like the market of providing health insurance to self-employed real estate appraisers. These are both markets, and how you should attempt to analyze their viability for your business is different, but not as different as you might think.
Let’s start with geographic markets. Because the insurance industry is so heavily regulated, your insurance agency can not just sell insurance anywhere it wants to. Your corporate insurance license has to be set up so that you can sell policies to people in a given jurisdiction. These corporate licenses are notoriously difficult to get and to interpret, so you will need the explicit blessing of your insurance policy providers before you even consider going into a new geographic market.
The next thing to determine with a geographic market is what the people are like there. You will need detailed demographic information, including age and income to know what you are getting yourself into. This data will also be critical when you design your marketing plans. Next, you will have to dig through insurance industry journals and market reports to get a sense of the insurance industry in the area. What percentage of the population has any insurance, and what percentage has the kind of insurance you are selling? How satisfied with that insurance are they? How much do they pay, what benefits do they get, and what are the terms of their policies? You will need to know all this and more.
To enter a market niche centered around a certain group of customers not defined by a geographic area, you will need to know most of the same information as for a geographic market. But in these instances, your relationships with the group you are courting are even more important. For an example, let’s use self-employed real estate appraisers. You want to provide health insurance to this group. So you will need to partner with the existing industry organizations that exist for them.
You will need to know exactly what their health insurance needs are, and how their health insurance needs to fit in with the rest of their business. How much can they afford, for example? Will they have any special medical needs? This may not be true of appraisers, but if you wanted to insure, say, fishermen, they would have to completely trust your understanding of the physical demands of their job, or they would not hand over money trusting that when an injury happened your company would do them right.
These are the introductory considerations for going into a market. You should do a formal market analysis to get a clear sense of whether or not to proceed. Most marketing managers are trained to do market analyses, or you can get instructions on how to do your own online.