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I have been hearing about the miracle money to be made in small commercial insurance for the last twenty years.  But never has the hype been more pronounced than in the last three.

Many “experts” believe that it is the potential salvation of the small independent agent who is currently overly focused on personal insurance.  That may be but its interesting to note that insurance companies seem to think it may be the salvation for them.

Industry pundit Chris Burand pointed out in his most recent newsletter that insurance carriers believe that there is less price elasticity in small commercial than in personal lines (carriers can raise prices more before retention suffers).  I agree with him that this is probably incorrect, but the fact remains that carriers seem to believe it.

Insurance companies are asking for the business from agents, and marketing for it with customers like never before.  Even companies like Metropolitan and Progressive who have never written commercial lines before, and those like Allstate where it has been a backwater, are jumping in with enthusiasm and interesting products.

In our organization we have an amazing embarrassment of riches with over 10 small business insurance companies to choose from.  There must be a soft market coming…

So, if you’re moving into small commercial in your agency, or already active in this arena, what are some things you can do to maximize your opportunity?

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