“Undesirable” niches can hold gold

After our beloved German Shepherd died we adopted a displaced pit bull from hurricane Katrina.  Both breeds are tragically on the verboten list of many thoughtless insurers.  But our carrier, Commerce, saw that their less astute competitors were handing them an opportunity on a platter.   Their creative solution: they allow any breed so long as it has passed the AKC’s Canine Good Citizen program, for no extra premium.

As you might imagine, we have told dozens of dog owners about this.  And since Commerce still has the policy in effect, they must be making a profit on the potential customers that other carriers are literally driving into their arms.

Might a little creative thinking in your firm also open up market segments you now regard as undesirable?

Ralph

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One Response to “Undesirable” niches can hold gold

  1. Mitch/Ralph says:

    Progressive Insurance went from niche player to industry leader on a similar strategy with car insurance. They found under-served niches were the risk was lower than others were pricing against and grew profitably and now they are a leader in the industry.

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