According to the 2013 Best Practices Study from The Independent Insurance Agents & Brokers of America, the answer is a resounding yes. As specialization has increased across agencies of all sizes, results indicate that “developing an expertise or proficiency in a certain industry or product has shown to facilitate targeted leads and referrals, improve retention and provide a competitive edge for an agency.”

Simply put, while it’s long been thought that staffing your agency with knowledgeable generalists who can sell every kind of insurance from soup to nuts is the best course, specialization allows an agency to distinguish itself from competitors, to “own” a particular niche by offering in-depth, unmatched expertise in a particular area. Becoming the go-to agency for auto, or medical malpractice insurance, for example, makes you - well - exactly that: the go-to agency.

So how do you and your agents become specialists?

Look at where you are to determine where you want to be.

For example, does your agency serve a large number of high-wealth individuals concerned about protecting their assets? You likely already have lots of expertise and interest in serving these clients’ liability insurance needs. Learning even more and becoming a specialist in this area might make sense for your agency.

Start learning everything that you can.

Find classes focusing on your area of speciality, and provide ongoing education for all of your agents. Tap into any available resources in the industry to refine your knowledge in your chosen specialty.

Recognize that change is never easy.

Be clear and straightforward with your agents about why more time, energy, education and resources have to be devoted to the area of speciality. Help them understand the potential benefits for all the stakeholders. Setting expectations can help tremendously as you all head in a new direction.

Keep your clients in the loop.

Use your website, social media platforms, and every other method you can think of to ensure that clients and potentials know your new focus. Specialization doesn’t have to mean that you can no longer help those outside that specialty, but it does show them that you’re the up-and-coming expert in a particular area - just in case they know people who need precisely that type of insurance!

Has your agency ever thought about specialization? If so, what area is your passion? For a look at some niche markets you may never have thought of, click here!