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Make Personal Lines Your New Year’s Resolution

Author:  Peter van Aartrijk, CEO and Managing Director, Aartrijk

Peter van Aartrijk photo1 150x150 Make Personal Lines Your New Years ResolutionI help the Independent Insurance Agents & Brokers of America (the Big “I”) with market-share research every year.  We look at the three distribution channels: direct response, captive agent and independent agent.  It’s always fascinating to look at the numbers provided by A.M. Best Co. each year.

One of the ongoing trends overall is that direct response, led by Geico, are making strong inroads into personal lines.  They are consistent in their advertising spend, and it’s paying off.  That’s no surprise. But what may be a surprise is that the IA channel is still doing well in personal lines, and some carriers are writing very efficiently vis a vis the competition.

But my big takeaway from the data is this: Private-passenger auto insurance alone is equal to one-third of ALL property/casualty premiums, including commercial lines!  That means if you, the independent agency, is more interested in commercial lines you are walking away from a third of your premium and commission potential.  Personal auto can lead to account rounding—and in many parts of the country a well-rounded personal lines account looks like a commercial account in terms of revenue.

Sure, personal auto is a battleground, but I think IAs compete very well.  Make it a New Year’s Resolution to take a new look at personal lines.  Go for it!

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