Thinking back over the past 12-18 months of renewals, remarkets and new business prospects, are you finding that clients are particularly focused on price? If not, where are you working? And can we please come and join you?

This pricing pressure is coming hand in hand with a tightening of underwriting guidelines, soaring rates and some carriers choosing to completely pull out of certain states.

Yes, we'd call that a hard market. Good news for independent agents, though—Hagerty remains open for business in all 50 states and is committed to helping you and your clients make a positive shift.

Here are five tips to consider when premiums increase and underwriting gets stricter:

1) Unbundle. We get the appeal: one carrier, one bill. So easy. But what's been clear and easy in the past might not cut it today. Have a client whose insurer will no longer include their second home, boat or jewelry? Are rate increases putting pressure on your accounts? Time to unbundle.

For example, protecting your client's collector cars with Hagerty, including cars that span more than a century—from 1900 to 2024—will likely save them money and improve their coverage. How? Premiums through Hagerty reflect enthusiasts' passion for their vehicles—and how they use them—so they tend to provide a much higher value: lower cost, better coverage.* This can also help balance unavoidable price increases in other areas of the account.

2) Utilize product accessibility. With so many sizable rate increases happening, you can truly support your clients by taking advantage of a range of options beyond standard carriers. It's an ideal way to cover all your clients' assets in products that best fit their needs and budgets. Plus, specialty protection through Hagerty has strong retention, with an approximately 89% retention rate for policies in force, and customer satisfaction, with a net promoter score of 82.** Win-win.

Hagerty rates increased an average of only 7% from 2022-2023, compared to an average increase of 28% from the nation's top 10 carriers during that same time.

Think seasonal coverage on these vehicles could save the day? Proceed at your own risk.

3) Leverage your network. Knowledge drives business. That's where your network can help. Independent agents that are partnered with Hagerty get access to market insights and product information, plus training and marketing materials.

Have a burning question or ready to partner to drive new business? A robust sales and agency relationship team like the one at Hagerty provides additional support to help you earn and retain clients.

4) Solve for macro trends. From eggs to new cars to homes, your clients are experiencing economic pressure everywhere through a soaring increase in the cost of living. Under these conditions, every bit of savings counts—that's where you come in.

You can help offset these rising costs by placing coverage on their specialty assets, like collector cars, with a specialized company, like Hagerty.

5) Add value beyond insurance. Want to guarantee your clients stick around? Take a consultative approach. Thanks to Hagerty, you have access to ease-of-business solutions that free up your time, as well as resources most people can't find on their own. Hagerty is your hook-up for top retention drivers for car lovers, like Hagerty Drivers Club®, enthusiast media, Valuation Tools®, automotive events, expertise and more.

Coverage designed for enthusiast vehicles has always been crucial for helping car lovers get behind the wheel. But just as important: it may have a lower premium, too. A lower insurance premium is just the thing many of your customers and prospects are on the hunt for right now. By using the tips and resources provided here, we hope to partner with you to drive your business forward and emerge from this hard market in a better position than when you entered.

The Nuts and Bolts

As we navigate the challenges of the current hard market, Hagerty stands as a steadfast ally for independent agents. This roadmap for success emphasizes the importance of adapting strategies to address pricing pressures, underwriting changes and carrier shifts. From the practicality of unbundling coverage to the reliability of specialty protection, Hagerty offers a unique blend of comprehensive solutions and cost-effective options. 

By offsetting rising costs with specialty asset coverage, such as collector car protection, savvy agents position themselves as a strategic partner capable of aligning with the evolving needs of their clients. As we face the continued uncertainties of the market, independent agents can rely on Hagerty's commitment to collaboration, innovation and added value beyond insurance to ensure that together we not only navigate the challenges but emerge stronger in the process.

Let's drive together.

John Gessner is director of marketing strategy at Hagerty. 

Disclaimer: *Figure based upon 2021 consumer data collected by Hagerty on single car quotes, with premiums $5,000 and under, from several daily driver (or “Everyday") auto insurance carriers.

**Based on year-end 2023 internal Hagerty data and member NPS scores. Membership by Hagerty Drivers Club (HDC), a non-insurance subsidiary of The Hagerty Group, LLC. Roadside services provided by/thru Cross Country Motor Club except in AK, CA, HI, OR, WI & WY where services are provided by Cross Country Motor Club of California, Inc. For additional information and a complete description of benefits, visit hagerty.com/corporate/legal. Purchase of insurance not required for membership in HDC. Policies underwritten by Essentia Insurance Company. Hagerty Drivers Club, Hagerty, DriveShare, Speedwaiver & RaceHero are registered or common law trademarks of the Hagerty Group LLC, ©2024 The Hagerty Group, LLC. All Rights Reserved. The Hagerty Group, LLC is a wholly owned subsidiary of Hagerty, Inc.