Insurance Marketing & Distribution

Justabitof Insurance is considering to expand into State X. State X has open competition in very large commercial lines ($500,000 in premium or more), but use and file on all other commercial lines. In personal lines auto all rates are set by the state and for homeowners the rates are use and file. The rating approval process for homeowners may change to pre-approval because it is a coastal state and a number of insurers have increased premiums or cancelled accounts in coastal areas. Justabitof Insurance sells personal lines and small business - its average commercial lines account is under $10,000. You are in charge of marketing. The CEO has asked you to put together a recommendation of how you could build a market for Justabitof's products in State X. You are licensed in State X, but haven't done business there. You have no offices and no agents or producers licensed in State X. 

1. Evaluate the type of insurance consumers you currently have vs the type of insurance consumers you are wanting to obtain. Describe their insurance needs, knowledge, access, negotiating ability & choice of financing alternative and what types of resources you will need to fulfill these characteristics.

2. Outline the marketing and distribution plan you would propose for the CEO's consideration.