A majority (96%) of agents sell or place both specialty lines as well as standard lines products, says the recently released “State of Specialty Insurance Report” from the Hanover Insurance Group, Inc. The report, conducted in conjunction with Zeldis Research, studied over 300 independent retail agents in order to figure out how they approach specialty lines.
Of the specialty products sold by agents who participated in the study, the ones they were most likely to offer included professional liability (96%), management liability (93%), inland marine (92%), cyber (92%) and E&S (88%).
The report also found that when it comes to carrier considerations, agents place specialty business directly with carriers about half of the time. The remainder of the time, they may leverage wholesalers, managing general agents (MGAs) or managing general underwriters (MGU) to increase market accessibility or expertise with certain products. The Hanover’s data reinforced the idea that agents are often tactful in their carrier selection, basing those decisions on the line they are placing at the time.
While this method of carrier selection can bring stability to an agent’s book, it can also leave their portfolio fragmented. While analyzing the participating agents’ books of business, Hanover found the following:
The Hanover’s report suggests agents who work with a more select group of carriers are at an advantage. When deciding just how to stack their carrier deck, they suggest agents seek out carriers who offer a broad suite of specialized products, invest in digital capabilities, coordinate coverage, offer direct access to underwriters, provide specialty lines customer service center support and work to enhance the customer experience.
You can view the entire “State of Specialty Insurance Report” from the Hanover here.
