As insurance agents and financial advisors understand perhaps best of all, in the course of life and business, unexpected events happen. While we can’t predict exactly when and how they’ll occur, we do know that economic downturns are inevitable. That’s why it’s important to take steps today to build a recession proof business. Keep reading for some of the most successful strategies top producers use to ensure their businesses are ready to weather any storm that comes their way.

How to Recession Proof Your Business

1. Start a Monthly Newsletter

A newsletter is one of the most effective digital marketing tools, allowing you to directly interact with prospective, current, and past clients and offer them value, demonstrate your expertise, and give them a reason to reach out for more services. Not only that, it’s a budget-friendly way to promote your business in any economic climate.

Bob Ryan is the President of Ryan & Ryan Insurance Brokers, Inc., as well as a top producer. Despite the strict regulations and mandates during COVID-19, he managed to achieve continued success in his practice all throughout the pandemic. One of the seeds planted by Bob during the pandemic, which has resulted in a bountiful harvest, is his monthly newsletter. Designed in-house, it goes out to over 3,300 people. The newsletter features a “Client of the Month” section, which highlights his small business clients, including doctors, restaurants, and manufacturers. The column has been so well-received that it’s become the most popular part of his newsletter. Bob also includes topics relevant to each season, such as barbecue safety tips during the summer and bad weather driving tips in the winter.

2. Develop Centers of Influence

No matter what the stock market is doing, strong relationships can help insurance agents and advisors stand the test of time with a steady stream of referrals. CPAs in particular can be a very successful referral source in the small-to-medium-size commercial marketplace, as the CPA is oftentimes the most trusted advisor the small business owner has.

Reach out to CPAs who handle both business taxes as well as individual taxes and form relationships with them. An easy way to stay in touch is to build up an email list of CPAs you know. When laws change regarding state workers compensation or state disability, share this information to your list to position yourself as not only an insurance sales entity but also a reliable, helpful source of industry knowledge.

Real estate agents can also be valuable resources. You can provide them with homeowners insurance cost estimators to generate goodwill. Staying active in the community and sponsoring a variety of local events is also a great way to meet new referral partners.

3. Delegate Strategically

As your agency grows, you’ll naturally need to hire help as you won’t be able to handle all of the work on your own. But before you start hiring what might be considered the “obvious” positions, it’s important to take a step back and evaluate your hiring needs according to your strongest skill sets. In other words, hire the right person with the skills that you don’t have or that you need more of. So if you’re a sales and marketing whiz but you’re behind on getting quotes, hire another insurance agent rather than more sales and marketing help. This can help ensure there’s someone available at all times to maintain your agency’s promotional and sales efforts — critical to keeping your business going strong.

4. Outperform Your Competitors

Your clients have a lot of options to choose from. Finding ways to differentiate yourself is essential to creating a stable, long-lasting insurance and financial services business. Here are some ways to stand out:

• Provide fast service. The more quickly you get back to someone, the higher the chances you’ll earn their business — even if you don’t have the best price. This is especially true when it comes to small businesses, as small business owners appreciate it when someone returns their call promptly.
  

• When writing a piece of business, upsell or cross-sell as needed to make sure your clients are getting the best coverage. For example, when writing commercial or personal lines business, upsell or cross-sell with workers comp, umbrella coverage, and group health.

• Make sure there’s concurrency in a client’s policies so that they don’t expire at different times of the year. This ensures there’s a single annual review, which helps close the door on competitors taking your existing business.

• At the same time, rather than trying to be all things to all people, build trust with your clients by referring certain types of business to other agents if you feel they can do a better job. After all, people don't forget when you turn business away for the right reason; this can result in unsolicited referrals later on in your relationship.

5. Automate Your Reviews

90 percent of consumers read online reviews before they visit a business, and 88 percent of them trust online reviews as much as personal recommendations. This makes it essential for insurance agencies and financial advisory firms to increase the number and rating scores of their reviews on platforms such as Google and Facebook.

Short on time? Consider using automated technology to check with clients and get their feedback. Not only can this substantially increase your reviews and review scores, but it also enables your team to handle issues they wouldn’t have otherwise learned about, resulting in better service overall.

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Looking for more best practices to keep your insurance agency thriving no matter the economic climate? At Producer Sensei, we’re dedicated to helping producers stay on top of the latest industry insights and trends. Subscribe to our blog to learn more strategies that will help you grow your insurance and advisory business.