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5 Trends in Insurance Franchise Investment

Trends in Insurance Franchise Investment

If you are considering becoming an insurance franchisee, you’ll want to educate yourself about the current trends impacting the business. Let’s look at some of the most prevalent trends with respect to the exciting career opportunity of insurance franchise investment.

1. How is Shifting Demographics Affecting Insurance Franchise Investment?

Shifting demographics are impacting both the current and future client base for insurance products, which affects almost everything insurance companies do.

Once considered the “younger generation,” millennials are now turning 40. They are a large cohort who are now in the phase of their lives where they are building careers and families and buying homes. Changing life needs create changing insurance needs!

Generation X is nearing retirement age and needs to continue looking at having proper insurance coverage in what many of them consider to be the active prime of their lives.

Baby Boomers are going strong as they enjoy or head to retirement and will need continued insurance support for their health, homes, and cars as they age. They are living longer, wanting to stay in their own homes longer than their parents, and striving to stay active. Many “retirees” regularly work at least part-time or own their own businesses.

The U.S. population is more multiracial than it once was, and therefore, a larger group of potential and current insurance clients are minorities. The rise in the Latino population has also created a greater need for insurance professionals focused in the hispanic insurance franchise industry. All minority populations need professionals who are culturally educated to serve their needs.

2. Is an Insurance Franchise a Recession-Proof Business?

Yes and no. The great news is that some types of insurance are necessary expenditures regardless of the economy. Starting an insurance company is always an attractive investment as Automobile liability insurance is required by law. Health insurance is important and an expense that most people will prioritize over other items. Homeowners and renters insurance provides needed property and liability coverage and brings peace of mind. Travel services, restaurants, and other “nice to have businesses” simply don’t have this advantage.

In a tight economy, prospects and customers may be less inclined to go for the “full package” available in an insurance policy. For example, they might stick with legal requirements or go for a more “plain vanilla” policy that covers the basics but does not have a high dollar amount coverage for items like collision insurance for their automobile.

3. How has Covid Impacted Insurance Franchising?

Yes. Covid has impacted insurance franchising just like everything else. The “shift” in awareness and working circumstances has been sharp. For example, customers have become more aware of the importance of life insurance.

If a brick-and-mortar business needs to lock its doors or is challenged by low staff due to ill employees, it can impact the bottom line for the business. Depending upon what happens in the future (and how it impacts your immediate geographic area and staff), realities like masking up, social distancing, and cleaning and disinfecting office spaces could be with us for some time to come. The great news with respect to this is that almost all tasks related to the insurance business can now be completed online and people are much more comfortable with using websites, video calls, and phone calls to conduct business than they were a few years ago.

4. Are Insurance Franchising Companies Using and Benefiting from AI?

Yes. Artificial intelligence, or “AI”, is a method of capturing information online and using it to tailor future content offered to consumers to their needs and interests. If you have ever browsed an online shopping site and then later received an advertisement for an item like the ones you were looking at, you have experienced AI. With websites and social media becoming an increasingly important way that prospects and customers do business with insurance companies, AI is a growing tool to help provide the right insurance to customers at the right time. The best insurance franchisors know this and will take advantage of it.

5. Are Insurance Franchising Companies Going Green?

Yes. Insurance franchising companies who have geographic footprints in areas where going green is important to the local populations are wise to take this initiative seriously. Insurance franchise brokers are looking opportunities to create greener office spaces when new construction is needed. Items as simple as providing company collateral on recycled paper can help companies to be viewed positively by the communities they serve.

To learn more about exciting insurance franchise opportunities, visit Freeway Franchise or call us at 877-822-3024 today!

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Ready to Open Your Own Freeway Insurance Office?

If you find the Freeway Insurance brand compelling and are looking for a flexible, well-supported business in a rewarding niche of the dynamic insurance industry, contact us.