Transformations in Insurance: Bridging Personal and Commercial Lines in 2024

The insurance industry is undergoing significant transformations in the midst of challenging market conditions. Agents now have an opportunity to reassess their client portfolios, particularly those heavily focused on personal lines. Enhancing their commercial line offerings could prove advantageous.

In 2024, the landscape of small commercial insurance is evolving towards a model resembling personal lines. With new commercial comparative rating systems entering the market and insurers integrating more pre-filled data into their underwriting processes, coupled with advancements in AI streamlining sales cycles, the quoting and submission processes are poised to become faster and more efficient. This transformation will facilitate easier acquisition and servicing of small commercial clients.

Simultaneously, the distinction between traditional personal and business insurance is rapidly blurring. This is driven by the rise of the sharing economy and a surge in entrepreneurship catalyzed by the pandemic. Projections indicate that the sharing economy market could expand by 32% by 2028, as highlighted in a 2023 study by Absolute Reports. Moreover, a September 2023 report from economists at the University of Maryland and the Federal Reserve notes a substantial increase in new business applications since 2019.

For instance, home-based business owners and rideshare drivers present unique risk profiles that span both personal and commercial insurance domains. Previously, agents might have assumed that a business owner would solely require personal insurance. However, today's clients increasingly require coverage that spans personal and business needs.

Successful agents will leverage their expertise to identify gaps between personal and commercial insurance coverage. Their aim should be to provide comprehensive solutions that meet the evolving needs of their clients. By adopting this approach, agents can effectively expand their small commercial insurance portfolios with unprecedented efficiency.

Bill Gordon is Vice President of Sales for Southwest Insurance Agents Alliance (a member of SIAA). With more than 35 years in the local insurance industry, Bill uses his expertise as a former captive agent and former owner of an independent insurance agency to assist others in the industry looking to build or expand their agency. Working with SIAA, he can provide comprehensive tools, access to carriers and markets, and coaching to help owners navigate the different stages of growth and emotions that can often supersede the changes that will fuel real actionable revenue growth you can take to the bank.