Industries — Commercial Insurance Brokerages
5 marketing mistakes commercial insurance brokerages owners make
The five mistakes below cost commercial brokerage owners more money than any competitor does, and the first one is treating a measurement problem as a demand problem.
8 min read · Reviewed by both partners
None of these are exotic. They are the five that show up again and again when we read the numbers of a commercial brokerage that has been spending without moving.
They are listed in order of what they cost, not in order of how obvious they are. The expensive ones are rarely the obvious ones.
Where the difficult risks go is governed by a specific federal-state framework.
Step by step
Buying attention before fixing the model
The instinct when growth stalls is more traffic. If premiums rise and commissions rise with them, which flatters bad years and hides thin ones then added traffic amplifies a leak and the invoice arrives either way. Diagnose first; it is the cheapest step in the sequence.
Not knowing which source produced the revenue
Most commercial brokerage operators can state last quarter’s spend and not last quarter’s source mix. Without that, every budget decision after it is a guess wearing a decimal point.
Ignoring the vertical’s own rulebook
Surplus lines — coverage placed with non-admitted insurers for risks the admitted market will not write — operates under state surplus lines laws, and the Nonadmitted and Reinsurance Reform Act gave the insured’s home state exclusive authority to require premium tax payment and regulate the placement, ending the multi-state allocation problem. Generic playbooks discover this after the money is spent.
Underfunding the thing that already works
Almost every commercial brokerage has one channel quietly outperforming the rest — often an industry-vertical specialization that makes the brokerage the market for a specific risk class. It is usually the one nobody has bothered to systematize, because it never asked for budget.
Killing programs at month four
Compounding channels look like failures right up until they do not. Programs get cancelled one quarter before payback more often than they get cancelled for being genuinely broken.
Common mistakes
Confusing activity with progress
A busy quarter of posting, posting, and posting produces a report full of numbers and a bank balance that has not moved. Ask what each activity was supposed to change.
Hiring for execution before strategy
A freelancer executing an undiagnosed plan produces well-made wrong work. For a commercial brokerage the sequencing matters more than the staffing.
Frequently Asked Questions
5 marketing mistakes commercial insurance brokerages owners make?
None of these are exotic. They are the five that show up again and again when we read the numbers of a commercial brokerage that has been spending without moving.
How does Growth-Scaling turn this into a concrete next step?
It sits under Commercial Insurance Brokerages in the Growth Scaling Method. The next step for an owner is the $1,500 Assessment, which reads your own numbers against everything described above.
What would this cost us?
Start at $4,500 for the diagnosis, standard, and route. Ongoing engagement is optional, quoted by the Plan, and floored at $5,000 monthly.
Who will we actually be talking to?
Both partners, on every engagement. That is the structural reason the firm stays small and the reason the engagement list is short.
References
- www.ftc.gov — primary source
- www.dol.gov — primary source
- www.irs.gov — primary source
Find out which of these is costing you
Two hours and your real numbers name the constraint. The rest of the list stops mattering once you know.
Growth-Scaling is a marketing and business-scaling firm. It is not a licensed practitioner in any client vertical and does not provide medical, legal, financial, or contracting services; all industry content on this site is marketing and growth guidance for owners in those fields. Figures describing past engagements refer to specific businesses under specific conditions and are not a prediction of any future result. No outcome is promised.
Written by Steven Lockhart, reviewed by David Mitroff, Ph.D. Figures and regulatory details reflect the cited public sources; requirements vary by state and situation. Growth-Scaling is a marketing and business-scaling firm, not a licensed practitioner in any client vertical.