Diversify or Die: Why Agents Need to Broaden Their Product Line

The insurance industry is no stranger to ups and downs, and the last few years have been especially tough for agents focused on auto and home. 

 

If you’ve been feeling the pinch, you’re not alone. What’s more concerning is the reliance many agents have on a narrow product line, which can be catastrophic when specific markets take a hit. To survive and thrive, agents need to diversify their offerings—not just to protect their income, but to unlock new opportunities for growth, even in turbulent times.

 

Cross-selling is more than just a buzzword; it’s a survival skill. As auto and home insurance companies become unpredictable with appetite, claims skyrocket, and underwriting tightens, relying solely on these traditional products can leave you scrambling. But when you can offer a wide range of policies—life, health, commercial, disability, or even niche markets - you’re not just giving your clients more options. You’re safeguarding your business from the ups and downs of any one market. Every cross-sell opportunity is a chance to stabilize your revenue stream while adding value to the client relationship and decreasing the likelihood of attrition.

 

Diversification isn’t just about offering different types of insurance. It’s about understanding the ebb and flow of cash in your business. Products that build residual income, like your home and auto clients, are great for long-term stability. But every business also hits points where you need a big cash injection—whether it’s to pivot in a tough season, invest in scaling, or simply cover short-term expenses. That’s where higher-commission, short-term products come in, like life, annuities, or even commercial that can give you a significant payout quickly.

 

The most successful agents recognize the importance of both sides of this equation. Residuals are your safety net, giving you steady, reliable income to weather storms. But those larger commission products are like fuel for your growth engine, allowing you to invest in new technologies, hire staff, or expand your marketing efforts. Together, these two types of income give you the flexibility to be agile and strategic in how you grow and sustain your business.

 

Call it like it is..  a LOT of P&C shops that closed the last few years would STILL be here if they had been getting 3-5 life cases closed a month or had an ACA book to fall back or at the very least could pivot to and begin selling.

 

Flexibility is key in an industry that’s constantly evolving. Having a diverse product portfolio allows you to stay nimble—able to pivot when certain markets dry up, while keeping your cash flow intact. More importantly, it positions you as a true advisor to your clients. Instead of being the “auto and home” guy, you’re the agent who can handle it all—offering solutions that fit every stage of your client’s life, business, or needs.

 

In the end, diversification isn’t just about more products; it’s about building a sustainable, adaptable business. Tough seasons will come and go, but those who’ve diversified their offerings and built a balanced portfolio of residual and high-commission products will have the tools they need to survive—and thrive—no matter what the market throws their way.