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insurance
[Photo Flickr]

Every industry has its niche products, those outliers that usually only a relatively small number of dedicated people are interested in. Although more narrow than the broader market, there is still money to be made in niche products and if one of those products happens to suddenly get popular, you have the advantage of being in on the ground floor.

In the insurance industry, niches are all about underserved communities, like these six groups.

1. Travel insurance for people who practice extreme sports or hobbies

Skydiving
[Photo by Morgan Sherwood/Flickr]

Skydiving, extreme mountain biking, rock climbing, base jumping, these are just some of the thrill seeking hobbies that people do. Obviously, these activities come with a certain amount of risk and even the possibility of death. That’s why people who do these extreme activities can sometimes have a difficult time finding insurers to cover them.

However, most people who do these types of activities tend to undergo training and use the proper safety equipment (or they do the activities with people who have undergone the necessary training), so injury rates aren’t as high as one may think. Studies have shown that Skydiving, for example, has an injury rate of less than 1%.

Why choose this niche?

Extreme sports and activities have skyrocketed over the last few decades. They now have dedicated TV channels, Internet sites, their own Olympics-type competitions and high-profile sponsors. They are also often a big part of people’s vacation and travel plans. With such a low rate of injury, though, they are still relatively safe and if you specialize in this niche, you can tap into this lucrative market.

2. Life insurance for little people

Dwarfism is a short stature in people that can be caused by over 300 different genetic or medical conditions. Anyone under 4’10 as an adult is considered to have dwarfism. Along with short stature, dwarfism creates a host of medical complications for little people.

Some of those complications include:

  • Delays in motor skills development
  • Frequent ear infections that increase the risk of hearing loss
  • Bowed legs
  • Difficulty breathing during sleep
  • Pressure on the spinal cord at the base of the skull
  • Excess fluid around the brain
  • Crowded teeth
  • Progressive severe hunching or swaying of the back accompanied by back pain or problems breathing
  • Narrowing of the channel in the lower spine, which can result in pressure on the spinal cord and cause pain or numbness in the legs
  • Arthritis
  • Weight gain that can further complicate problems with joints and the spine and place pressure on nerves

Why choose this niche?

Many insurance agencies don’t specifically deal with the unique problems that little people face in a world not made them for them. The most common type of dwarfism is caused by Achondroplasia, which is a genetic condition that affects about one in 15,000 to one in 40,000 people. Because it is not a common condition, many insurance companies don’t cater to this community. If you are the only one in your city or area that offers specific insurance for little people, you could easily corner the market on it.

3. Auto insurance that focuses on only one brand or type of vehicle

Tesla
[Photo by Paul Hudson/Flickr]

Some brands of cars are still fairly exclusive due to pricing and relative rarity. High end sports cars like Ferrari or Lamborghini, for example. Teslas are another, more accessible example. You could sell specialized insurance packages for one of these individual brands or a type of car like electric vehicles, 4x4s or so-called “supercars.”

Why choose this niche?

While vehicles like Teslas and supercars may be relatively rare, their higher prices mean higher insurance costs. These vehicles may have specialized equipment that requires extra insurance. Also, the type of people who own these vehicles will likely not have much trouble paying for higher insurance for them, making it a nice, higher end niche to get into.

4. Business insurance for businesses that have highly unique needs

Chest Press Incline
[Photo by Stephanie Young Merzel/Flickr]

Not all businesses have the same needs when it comes to insurance. Some have highly specialized needs. You can choose a type of business that you specialize in and concentrate on creating packages that fit their unique needs.

For example, gyms have to make sure they have insurance that covers anyone getting injured while using their equipment and coverage for the equipment itself. This is tricky in their case because a lot of people using the equipment may not know the proper way to use it, thus increasing their risk of injury.

Why choose this niche?

If you specialize in a few of these distinct businesses, you can then present yourself as an expert in their insurance needs and become the go-to agency for the types of businesses you have chosen to specialize in.

5. Life insurance for active military members

Presenting the colors at "Fight Night for Heroes" on Forward Operating Base Marez
[Photo by the US Army/Flickr]

While the government does provide insurance for active military members, those who have families and dependants may want to get further insurance. You can help this niche with plans structured specifically for them. One of the things active military members look for in an insurance plan is that it does not contain a “war exclusion clause,” which is a clause stating that if a member dies in an act of war, it is not covered by insurance.

Why choose this niche?

In addition to serving a fairly large pool of people in active military members, you will also be doing good by serving the people who serve the country.

5. Health and life insurance for overweight people

Obesity comes with many health hazards and being overweight or obese can make it more difficult for people to find insurance. Some of the more common ailments associated with overweight people include:

  • Type 2 diabetes
  • High blood pressure
  • Heart disease and strokes
  • Certain types of cancer
  • Sleep apnea
  • Osteoarthritis
  • Fatty liver disease
  • Kidney disease
  • Pregnancy problems

With so many medical issues associated with obesity, it can be difficult for people who are overweight to find insurers willing to work with them.

Why choose this niche?

It’s no secret that many Americans fall into the category of being overweight or obese, so this isn’t exactly a small niche. By specializing in coverage for overweight or obese people with specialized insurance packages, you can tap into this major source of customers.

Regardless of whether you decide to specialize in one of the above niches, a different one or you just offer more generalized insurance, your agency needs a reliable agency management system like Evo Agency Management software. No matter what type of insurance you offer or how specialized you go, Evo can help you because it has been tailored to be flexible, easy-to-use, secure, user friendly and customer-oriented. Please visit us and book a demo today.

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