How can insurtech startups negotiate with insurance brokers?

1 Understand your value proposition

Before you approach any broker, you need to have a clear and compelling value proposition that differentiates your insurtech solution from the competition. What problem are you solving for the broker and their customers? How can you help them save time, money, or hassle? How can you enhance their reputation, trust, or loyalty? How can you provide data insights, analytics, or feedback that can improve their performance? You need to articulate your value proposition in a concise and convincing way that appeals to the broker's needs and goals.

2 Research your target brokers

Not all brokers are the same. They vary in size, scope, specialty, culture, and preferences. You need to do your homework and research your target brokers before you contact them. Find out their pain points, challenges, opportunities, and expectations. Learn about their current partners, products, and processes. Identify their decision-makers, influencers, and gatekeepers. Tailor your pitch and proposal to match their profile and interests. Show them that you understand their business and that you can add value to it.

3 Build trust and rapport

Negotiating with brokers is not just about numbers and terms. It's also about relationships and emotions. You need to build trust and rapport with the brokers you want to work with. Show them that you are credible, reliable, and professional. Demonstrate your expertise, track record, and testimonials. Listen to their feedback, concerns, and objections. Address them with empathy, honesty, and transparency. Show them that you care about their success and satisfaction. Use positive language, tone, and body language. Avoid being too pushy, aggressive, or defensive.

4 Focus on mutual benefits

The best negotiations are those that create mutual benefits for both parties. You need to find out what the broker values most and what you can offer them in exchange for what you want. For example, you might offer them a higher commission, a longer contract, or a better service level in return for a lower price, a wider distribution, or a faster implementation. You might also look for ways to create value-added opportunities, such as cross-selling, upselling, or referrals. You need to communicate how your insurtech solution can help the broker achieve their objectives and how they can help you achieve yours.

5 Be flexible and creative

Negotiating with brokers is not a one-size-fits-all process. You need to be flexible and creative in finding solutions that work for both sides. You need to be prepared to compromise, adapt, and improvise. You need to be open to different options, scenarios, and alternatives. You need to be willing to test, experiment, and iterate. You need to be ready to handle unexpected issues, changes, or delays. You need to be respectful, courteous, and collaborative. You need to be confident, assertive, and persuasive.

6 Follow up and follow through

The negotiation process does not end when you sign the deal. You need to follow up and follow through with the broker to ensure a smooth and successful partnership. You need to confirm the details, expectations, and responsibilities of the agreement. You need to deliver on your promises, meet your deadlines, and exceed your standards. You need to monitor the results, measure the impact, and report the outcomes. You need to solicit feedback, address issues, and resolve conflicts. You need to nurture the relationship, celebrate the achievements, and explore new opportunities.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?