The insurance industry has been under immense pressure over the past few years, with providers pulling back on marketing, tightening underwriting criteria, and even withdrawing from certain states. In our latest episode of UNBIND with Bindable, company president, Jean-Marie Lovett, was joined by Austin Herrin, Bindable's agency general manager, to shed light on how insurance companies can not only survive these challenges, but also find opportunities for growth by embracing alternative distribution channels.
As Jean-Marie notes at the beginning of the episode, much of the focus during the hard market has been on how insurers are responding to these market pressures. "Providers have had to take action in order to remain profitable and focus on that profitability," she said. The key is to shift the focus from merely surviving to proactively seeking growth, even in tough times. Jean-Marie emphasized that markets are cyclical, and with the right strategies, insurers can prepare themselves for the eventual softening of the market.
Austin shared insights from his close work with carrier partners, noting that many have tried various tactics to reduce loss ratios. These include limiting coverage to specific demographics, reducing marketing spend, and even pausing new business in certain states. While these measures have been necessary, Austin and Jean-Marie both highlighted that there are still opportunities for growth. "We've been able to weather the storm and continue to be in growth mode," Austin mentioned, attributing the continued success of Bindable’s in-house agency to strategic placement of risks with the right carriers and leveraging technology to pre-fill quotes based on detailed data.
Jean-Marie underscored that, even if insurers can't grow their core business, they can still be the go-to destination for their customers by offering alternative solutions. "The way to do that is to provide alternative solutions and products, even if they're not their own," she said. This approach not only helps balance the risk portfolio, but also keeps customers loyal and engaged within the insurer's ecosystem.
Both Jean-Marie and Austin emphasized the importance of keeping agents in the loop. "If you equip the agents with those tools and processes to make their jobs easier, it's going to be a better customer experience as well," Jean-Marie stated. Austin echoed this sentiment, noting that when carriers who work through independent agents give the same digital tools used for direct customers to their independent agents, they enable their agents to maintain strong customer relationships, while also encouraging them to sell their products.
Looking ahead, Jean-Marie highlighted a recent report from Swiss Re indicates that the global non-life insurance markets are expected to start softening, especially as we approach 2025. "It's important to have this conversation today so that companies are thinking about how to engage with their customers," she said. By establishing relationships now, insurers won't need to reengage their customers when the market opens up—they'll already be positioned to capitalize on new opportunities.
Throughout the conversation, several key points emerged for insurers looking to navigate the world of alternative distribution:
By embracing these strategies and focusing on alternative distribution channels, insurers can position themselves not just to survive but to thrive in any market condition.