Ways to win in the major risks market
When your market is major risks clients, the cost of sales is high, and the time and effort you invest is enormous. The market may be concentrated on the limited number of players with the right capabilities, but competition is intense and margins are being progressively squeezed.
The clients are sophisticated and demanding buyers, who select their partners for their long-term commitment to the relationship. They look for insurers and brokers with highly innovative solutions to emerging risks in their risk profile – the insurance sector is being challenged to keep up with the pace of change of clients' businesses.
As a result, brokers and insurers need to achieve a high conversion rate – they need to get more selective on sales and better at identifying the clients and the business they are most likely to win. So before you start the pitch process, it's worth making sure you put yourself in the very best position to demonstrate your expertise and depth of knowledge. Here are a few of our thoughts to set you thinking...
How well do you know the sector?
Have you put together economic and risk profiles including financial performance and prospects; sector profiles and breakdowns; key risk and insurance issues?
How much do you know about the clients?
Do you thoroughly understand their needs? What are they looking for from insurers and brokers? What information can client insights give you about the business opportunities? What do you need to do to win their business?
What about segmentation?
What are the key segmentation factors for major risks? Which are the segments to focus on and why? Have you scoped out and prioritised the business opportunities?
How closely have you analysed the competition?
Which segments are competitors focusing on and why? How is your company is perceived and positioned against competitors? Have you carried out a competitor SWOT?
Is your proposition/positioning clear?
Does it set you apart from the competition? Does it clearly convey the value you add? Can you use it to convincingly to target clients?
How well do you know the prospects?
Have you had the opportunity to engage with them and build relationships? Have you tested propositions and products on them pre-launch? Can you identify the real opportunities? And discount the non-starters?
How well are you marketing yourself?
Do you have integrated marketing and development programmes that place your proposition and specialist services powerfully in the market? Do you stand out from the crowd? Are you using market events to win friends and influence people?
Gathering this knowledge and knowhow before you start means you can target your efforts in the areas where you have the highest chance of winning and dramatically reduce your cost of sales.