In today’s competitive insurance market, carriers are constantly seeking new ways to reach potential customers and increase market share.
One strategy many carriers have adopted is to form partnerships with third-parties, expanding their customer base with a stronger strong brand presence. These partnerships can be a powerful tool for driving sales and expanding the reach of an insurance carrier’s products and services.
WaterStreet Company is a provider of P&C Policy Administration Software. We empower insurers to leverage next-generation technology for rapid growth and greater market share.
In 2020, insurance carriers recorded 665 partnerships with insurtech providers, up from just 167 in 2015.
Partnerships in the insurance industry continue to grow, leveraging cloud storage and advanced APIs to connect various third-party systems. Today’s technology has accelerated data sharing and has helped promote the creation of unique approaches to new product offerings.
One of the primary benefits of forming a partnership through the sales channel is the ability to tap into an established customer base. By partnering with a company that has a large and loyal customer following, an insurance carrier can leverage the third-party’s brand recognition to generate new leads and increase sales.
For example, an auto insurance carrier may partner with a popular car dealership chain to offer customers a discounted rate on insurance policies. This type of partnership can be highly effective in reaching potential customers who may not have considered the carrier’s products or services otherwise.
In addition to reaching new customers, partnerships can also help to build credibility and establish trust with potential customers. When an insurance carrier partners with a well-known and respected company, it can lend credibility to the carrier’s products and services. This can be particularly valuable for new or smaller carriers that may not have the same level of brand recognition as larger, more established carriers.
While partnerships through the sales channel can be a powerful tool for driving sales and expanding reach, they must be approached carefully in order to be successful. Here are some tips for insurance carriers looking to form partnerships:
The success of a partnership depends largely on the compatibility of the two companies involved. Insurance carriers should look for partners that have a similar customer base or target market, and that can offer complementary products or services.
Before entering into a partnership, it is important to establish clear goals and expectations for both parties. This includes defining the scope of the partnership, the responsibilities of each partner, and the metrics that will be used to measure success.
Communication is key to the success of any partnership. Insurance carriers should maintain open lines of communication with their partners and ensure that everyone is on the same page throughout the duration of the partnership.
Partnerships benefit insurance sales, expanding reach across niches of the insurance industry. By leveraging the brand recognition and customer base of other companies, insurance carriers can increase market share and establish themselves as credible and trustworthy providers of insurance products and services. With careful planning and execution, partnerships can be a win-win for both the insurance carrier and their partner companies.
WaterStreet Company relies on many technology partnerships to help deliver next-generation support to our carriers, MGAs and MGUs, as well as associated agencies.